Calculating the value of a settlement is one of the most complicated parts of any wrongful termination lawsuit. It’s also one of the top concerns for employee plaintiffs. Many employees understandably want to know whether a lawsuit is worth their time before they commit to legal action. However, getting a precise estimate of a potential settlement amount is trickier than it may seem.
Our unlawful termination attorney will explain how compensation for wrongful termination cases works, discuss the factors that impact the value of a settlement, and offer guidance for finding an accurate wrongful termination settlement calculator for California employees.
Understanding Wrongful Termination Settlements in California
According to California and federal law, employees can sue for wrongful termination when an employer’s illegal motives lead them to lose their jobs. Discrimination, retaliation, violations of labor laws, and breach of contract are all common grounds for wrongful termination lawsuits in California.
When your employer dismisses you for illegal reasons, you can file a lawsuit and pursue financial compensation for the professional and emotional harm you’ve suffered. Compensation in wrongful termination cases can cover economic and noneconomic losses resulting from your firing. Economic losses include lost income, employment benefits, costs of searching for a new job, and attorney fees. Noneconomic losses are more difficult to quantify harms, such as emotional distress, pain and suffering, and reputational damage.
A settlement is an agreement designed to resolve the issue between the employee and employer outside of court. In essence, the employer who engaged in the alleged wrongful termination offers the employee a payment in exchange for dismissing their legal claim. Both parties’ legal counsel negotiate to determine appropriate compensation based on the case’s circumstances. If the employee plaintiff accepts the employer’s settlement offer, they typically agree to drop their lawsuit and waive any right to future legal claims related to their firing.
Wrongful Termination Settlement Calculator
Many different factors are involved in calculating the value of a settlement in wrongful termination cases. Let’s look at some of them and how they can impact your potential compensation.
Lost Income and Benefits
The primary factor in determining a settlement amount is the annual value of the compensation you received in your former job. This compensation is more than just your salary. It also includes:
- Bonuses,
- Sales commissions,
- Raises, and
- Healthcare and other benefits.
The main aim of settlements in wrongful termination cases is to compensate you for the past earnings you lost along with your job. Typically, this is calculated by taking the total annual value of your lost income and benefits and multiplying it by the number of years since your firing.
Age and Skillset
Some wrongful termination settlements may also offer compensation for lost future earnings. This compensation is also known as “front pay.” Calculating the value of what you would have earned if you’d stayed at your job is a little more complicated. Some factors used to estimate your potential future earnings include:
- Your age,
- Education and training,
- The seniority and skillset involved in your role, and
- The time you planned to stay at the company.
Generally, front pay is only available when you can’t be reinstated in your former role.
Employer Conduct
The severity of your employer’s actions can also affect the value of a potential settlement. If you have evidence that your employer was aware that they acted on illegal motives when they fired you, that can be grounds for greater compensation. Intentionally deceptive or malicious behavior on the part of your employer can also increase the potential value of your settlement. Evidence that your firing is part of a pattern of repeated illegal behavior may also raise your settlement value.
Quality of Evidence
Clear and compelling proof of your illegal termination may also improve your settlement. The more substantial the evidence you have of your employer’s wrongdoing, the more difficult it is for them to defend their actions. Documentary evidence—e.g., emails, messages, memos, and voicemails—illustrating your employer’s knowledge and illegal intent can be especially valuable. Other forms of documentation that can help your case include:
- Employment contracts and employee handbooks,
- Records of formal complaints or reports you made,
- Favorable past performance reviews, and
- Your termination letter.
Testimony from coworkers or managers who witnessed discriminatory or illegal behavior can also help support your claim and case for increased compensation.
Your Lawyer
The skill of your legal representative is a critical but often overlooked factor in the value of your settlement. Settlement amounts are determined through negotiations between your lawyer and your employer’s opposing legal counsel. An employment attorney trained in California and federal law understands the legal and argumentative strategies that can move the needle on your claim.
A skilled lawyer can also help secure evidence to build a strong case against your employer. This combination of legal knowledge and negotiation experience is essential to ensure you recover the maximum amount possible in a settlement.
Looking for Help Calculating a Wrongful Termination Settlement?
What’s the best bet for employees looking for a wrongful termination settlement calculator? A Los Angeles employment lawyer. An attorney trained in California and federal employment law is the most accurate resource for understanding the value of your potential settlement. A legal professional with direct experience in wrongful termination claims can evaluate your situation, identify the strengths and weaknesses of your case, and help you understand how that could impact your potential compensation.
Ultimately, this will still just be an estimate. Since settlements depend upon negotiation, it’s impossible to estimate the result with 100% accuracy. However, a qualified estimate from an experienced attorney can help employees make an informed decision about how to move forward.
At Tomorrow Law™, we understand firsthand that the decision to file a lawsuit against your employer shouldn’t be made lightly. If you’re concerned that your firing was illegal, contact our office to schedule a free consultation with one of our attorneys.
For over a decade, our advocates have helped California employees understand and exercise their rights in the face of unfair and illegal terminations. With combined decades of experience and a proven track record of recovering millions in compensation for Californians, our team will help you at each step in the legal process. To learn more and schedule a consultation, contact us by phone or online.