Losing your career can be devastating. While employers may fire workers for nearly any cause and at any time, they are not permitted to terminate employees for any illegal purpose, such as discrimination. If your employer wrongfully fired you, you may have legal rights to recover damages.
Among the damages that you might be able to recover is something called front pay. Many individuals are not acquainted with the terms “front pay” and “back pay,” which are essential in many workplace conflicts. Here, we’ll go over the basics of front and back pay, including their fundamental differences.
Since you’re likely more acquainted with the term “front pay,” we’ll begin with that. Front pay is an equitable remedy (type of “damages”) awarded in some employment claims involving wrongful termination or other kinds of workplace disputes. Front pay is intended to reimburse workers in a way that would make them “whole,” so as if the termination never happened.
Front pay is proposed when the employee cannot be reinstated, either because the position is filled or the position has been eliminated, to make up for the lack of reinstatement. Sometimes front pay is suggested if it doesn’t make sense for the worker to return to work due to the detestation or outrage from the employer.
What Is An Example of Front Pay?
Let’s say that an employee was wrongfully removed from their job as an act of employer vengeance. Front pay functions as a replacement for reinstatement while that worker is looking for a new job.
What Is Back Pay?
Back pay refers to the salary, wages, and benefits that are due to an employee that their employer has refused them.
What Is An Example of Back Pay?
Let’s say that an employee faced a salary cut as an act of employer retaliation. Awarding back pay would indicate that the employer would pay their employee the wages that they would have made had their wages not been pruned. Back pay can also be pursued in wrongful termination cases, seeking compensation or earnings that an employee would have accumulated had they not been fired or laid off.
What is the Distinction Between Front Pay and Back Pay?
Front pay and back pay are distinct forms of recompense. Back pay would be compensation for any wages the employee would have gained if they were not fired. That means any wages they should have earned since the date they were fired and the day the court allocated the judgment.
While they seem very alike, there are vital distinctions. For example, suppose an employee was awarded back pay and refused an unconditional offer and position that is similar enough to their previous position. In that case, the employer has a right to end back pay.
But for front pay, the employee cannot be offered reinstatement or a similar position with the same employer for certain causes. Since there is no employment possibility to turn down, there is no possibility of front pay being stopped due to refusing reinstatement.
Back pay and front pay are distinct types of compensation. Back pay is a type of damage that pays you the wages you would have received if you had not been fired. Back pay is calculated from the date you were fired until the court issues a judgment in your favor.
Suppose an employee is awarded back pay but refuses a position similar to the previous job. In that case, the employer may have a right to end the back pay. For front pay, employers cannot end it.
Determining Front Pay and Back Pay Amounts
When computing back pay, lawyers and the jury can consult the wronged worker’s earlier salaries, wages, and pay stubs. From there, it’s fairly easy to estimate an amount owed in back pay and benefits.
Front pay, however, does not have a specific formula. In many circumstances, the judge determines the front pay owed. When determining front pay, courts may factor in the employee’s age, the duration of employment, how long it will take the worker to find comparable employment, and so forth.
How Back Pay Is Estimated?
To compute back pay, it’s possible to look at an employee’s wages, pay stubs, or other financial materials. These materials help to calculate how much they would have earned from their employer. This process is relatively straightforward.
How Front Pay Is Calculated?
Calculating front pay is not as precise as computing back pay. Since the formula is not so precise, the judge often determines the amount given the nature of the case and line of work. The court may also evaluate additional factors, such as the employee’s age, the length of time the employee spent with the employer, and the amount of time it may take for the worker to find similar work.
Front Pay Damages
Many anti-discrimination and anti-retaliation regulations permit reinstatement as an element of damages. If restatement is not achievable, a court may award front pay instead of reinstatement. There is no specific formula to specify the amount of front pay. A front pay award is intended to provide compensation for some time sufficient to let the wronged worker have a chance to get comparable employment. As front pay is an equitable remedy, the judge usually decides front pay.
A prevalent plaintiff can also recover lost future earnings, which compensates the plaintiff for the effects of unlawful termination. Lost future earnings “encompass reputational damages, loss of experience, and other forward-looking elements of the injury caused by the discriminatory conduct.”
Is Front Pay Different from Future Earnings?
Yes, front pay and “future loss of earnings” relate to completely different legal claims. Front pay seeks to compensate an employee for wrongful termination. At the same time, future loss of earnings is typically a compensatory award issued in personal injury claims when the victim is rendered unable to work or limited in their future work potential.
For example, suppose an employee is discharged unfairly due to discrimination instead of ordering the employer to reinstate the employee. In that case, the court may order the employer to render the employee’s wages if not fired (front pay).
Future loss of earnings would be a more reasonable claim if the victim in an automobile accident becomes paralyzed and loses their job because they can no longer physically drive to work. Front pay and future earnings are different. Front pay is meant to compensate workers who were wrongfully terminated. Future loss of earnings is a compensatory award that may be recovered in personal injury claims, meaning the two originate from different legal claims.
Do I Need a Lawyer for Claims Involving Front Pay?
If you have been wrongfully terminated from your job, you may wish to contact an employment lawyer immediately. Your lawyer can help you file a claim in court or with an administrative agency that will process your complaint.
In addition, a skilled attorney can gather physical evidence, interview witnesses, file paperwork, and represent your interests in court.
Use LegalMatch today to find an attorney in your area. If you’ve been wrongfully terminated and wish to recover damages that you may be entitled to, find the right lawyer for your needs on LegalMatch.
