Types of Compensation Available in Employment Law Cases

If your employer has broken the law, you may be able to take legal action and recover compensation in response. Arizona law gives employees several ways to hold their employers liable for things like wrongful termination, workplace discrimination, and more.

What you can recover will ultimately depend on the unique facts and circumstances of your case. No two employment law claims look exactly alike, and the damages available under one law may be different from those available under another. Read on to learn about the most common types of compensation in Arizona employment law cases.

Back Pay and Front Pay

Back Pay and Front Pay

When an employer’s illegal conduct costs you your job (or a promotion, in some cases), you may be entitled to the wages you would have earned if it hadn’t happened. This is called back pay, which covers the time between the wrongful action and the resolution of your case. Front pay works the same way but looks forward, covering future lost earnings when going back to your old position isn’t realistic. 

One thing to keep in mind is that you’re expected to make a reasonable effort to find new work after losing your job. This is referred to as the duty to mitigate under the law.

Compensatory Damages

Employment law cases can affect much more than just your paycheck. If your employer’s actions caused emotional distress, harmed your professional reputation, and led to other personal losses, compensatory damages may be available to cover those harms. Costs tied to searching for a new job or relocating can also fall into this category.

Under federal law, compensatory damages in discrimination and retaliation cases are capped based on the size of the employer. For instance, per Title VII, combined compensatory and punitive damages range from $50,000 for smaller employers up to $300,000 for those with more than 500 employees. These caps don’t apply to back pay, front pay, and attorney’s fees. 

However, note that state law claims like whistleblower actions under the Arizona Employment Protection Act may not carry the same limits.

Punitive Damages

In cases where an employer’s behavior goes beyond careless and crosses into truly harmful or intentional territory, punitive damages may come into play. These aren’t meant to make up for a specific loss you suffered. Instead, they exist to punish the employer and send a message that the conduct won’t be tolerated.

To recover punitive damages, you’ll generally need to show that your employer acted with malice or a reckless disregard for your rights. Though these damages are rarely awarded, they can increase the value of your claim dramatically if they do apply.

Recovery for Wage and Hour Violations

Arizona offers its own protections for workers who haven’t been paid what they earned. If your employer failed to pay your wages or commissions, you may be able to recover up to three times the unpaid amount under state law. For overtime violations, the Fair Labor Standards Act may entitle you to double the amount of any unpaid overtime wages.

Attorney’s Fees and Equitable Relief

A successful employment law case doesn’t always end with a check. In many situations, the court can also order the employer to take specific steps to fix the problem, such as reinstating you to your old position or putting new workplace policies in place.

Attorney’s fees are recoverable in many types of employment cases as well. This matters because it means a win can offset much of the cost of bringing the case in the first place.

How you go about pursuing compensation depends on the type of claim and which laws your employer broke. In many cases, you’ll need to go through an administrative process before you can file a lawsuit. 

Here are some of the most common routes:

Every one of these options comes with its own deadlines and requirements. An employment law attorney can help you figure out which path makes the most sense and make sure nothing falls through the cracks.

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

If you believe your employer violated your rights, understanding the compensation that may be available is an important first step. An experienced employment attorney can evaluate your situation, explain the laws that apply, and help you pursue the remedies available under Arizona and federal law.

Houk Employment Attorneys is committed to protecting employees’ rights and helping clients navigate every stage of the legal process. Contact us today at (480) 569-2377 to schedule a consultation with a Phoenix employment attorney and learn how we can help.