What is Front Pay?

If you have been wrongfully terminated by your employer or have faced retaliation, you may be entitled to several types of damages. Front pay is a remedy that compensates you for future earnings you would have received if not for the employer’s conduct. Dive into all the details below to learn more about when front pay may be available and how to calculate it.

When Is Front Pay Available?

Front pay is not available in all wrongful termination or other employment law cases. Front pay is typically only available in situations where reinstatement is not feasible. 

In some cases, the position may no longer be available. In other situations, the employee may not wish to seek reinstatement because of a hostile work environment or other factors.

In What Types of Cases Is Front Pay Available?

Front pay can be available in many different types of employment-related cases in which the employee is terminated or forced to resign, including:

  • Wrongful termination
  • Discrimination
  • Hostile work environment

On the other hand, back pay is a much more common remedy in employment cases. It compensates a victim for wages and benefits they were wrongfully denied. Back pay calculations are much more straightforward as well. Typically, putting a value on back pay is done fairly easily by reviewing pay stubs and other employment records.

How Is Front Pay Calculated?

There is no specific formula for calculating front-pay damages. Generally, these damages are awarded at a judge’s discretion and can be based on many factors. 

Typically, they are used to compensate the plaintiff for wages they could have earned from the time of the judgment until they can reasonably obtain comparable employment.

What Are the Factors in Calculating Front Pay?

Some of the factors used to determine the amount of front pay in these cases are:

  • The employee’s age, health, and life expectancy
  • The employee’s salary and other benefits at the time of termination
  • The employee’s efforts to find new employment
  • How long the employee worked for this employer
  • The current job market, especially for comparable positions

In difficult job markets, an employee may be awarded a higher amount of front pay. This is because it will likely take them longer to find comparable employment to replace their income. In the meantime, they would be entitled to more front pay to cover the wages and benefits they would have been earning if it were not for the employer’s misconduct.

Are There Any Caps on How Much Front Pay Can Be Awarded?

Arizona has no specific limits on how much front pay may be awarded in wrongful termination, discrimination, or other employment cases. However, employees are expected to attempt to mitigate these damages. They should actively seek new employment so that they can replace their lost income as quickly as possible. 

Although there are no strict or specific limits, the amount of front pay awarded should be reasonable based on all the factors considered.

What Other Damages May Be Available?

Besides front pay, employees may be entitled to recover many other types of damages in lawsuits against Arizona employers. This can include both economic and non-economic damages. Economic damages compensate employees for their financial losses, while non-economic damages compensate them for their stress and trauma. 

Some common examples of other damages that may be available include:

In certain situations, punitive damages may also be available. Punitive damages are used to punish employers for their wrongdoing and to deter similar conduct in the future. 

Contact the Phoenix Employment Lawyers at Houk Employment Attorneys for Help Today

The best way to determine all the damages to which you may be entitled is to get help from an experienced Phoenix employment lawyer at Houk Employment Attorneys. Contact us today for a free consultation.

If you think your rights have been violated, contact Houk Employment Attorneys for a confidential consultation with an Arizona employment lawyer. 

Houk Employment Attorneys
1850 N Central Ave Suite 2010, Phoenix, AZ 85004
(480) 569-2377