Front pay

What does Front pay mean?

Claimants litigating certain statutory claims for harassment or discrimination may be entitled to certain types of remedies or compensation if they win their labor case. Remedies may include reinstatement to the job or position or front pay, which is money awarded to compensate for the lost wages during the period between the court’s decision and the reinstatement (i.e. lost earnings).

Should I seek front pay or reinstatement?

Depending on the type of litigation or the jurisdiction where your case is argued, you may be required to seek both reinstatement and front pay, although in some cases the employee cannot be reinstated to their previous job and may be given front pay. The amount of front pay given varies and is often permitted by the courts in lieu of reinstatement.

So how does the court determine the amount of front pay awarded to the employee?

The Tenth Circuit court has provided general factors which should be considered including the salary and benefits of the worker at the time of termination, the potential increase of salary the worker could have expected had they not been terminated, the amount of time the worker would have worked, the availability of other work opportunities, the amount of time it will take for the worker to find other work, and the methods to discount any award to net present value. If you have questions about your ability and right to receive front pay talk to an employment lawyer.

Remember, all labor claims must be filed within the statute of limitations for your case, which may vary by type of case and state laws. Filing after the statute of limitations may negate your right to compensation for your labor claim.

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