There are few events more frustrating than being fired, especially when it was done wrongfully. Employers may be held liable for several illegal reasons for firing, such as discrimination, wrongful termination, and harassment.
If you believe that you have been wrongfully fired from your job, you may be eligible to pursue a lawsuit. California law is among the most employee-friendly in the country, making it easier to get justice in these circumstances. If successful, your case could provide you with compensation in the form of damages caused by unlawful employer actions.
What Damages Are Available in a California Employment Lawsuit?
There are four primary forms of compensation available in a California employment lawsuit: Economic damages, non-economic damages, punitive damages, and coverage for attorney fees. Keep in mind that multiple categories can apply to the same case, and it is usually not just one or the other.
Types of Economic Damages You Can Recover
Economic damages represent tangible, concrete financial losses. They account for the dollar-for-dollar losses the employer caused.
Back Pay
Back pay is the money the employee lost from the day the unlawful act occurred, whether it was wrongful termination, an illegal demotion, or something else. This continues up until the case settles or reaches judgment. It covers base salary, overtime, bonuses, commissions, health insurance, retirement contributions, and unused PTO.
One important California-specific rule is that, under the California Fair Employment and Housing Act, or FEHA, unemployment benefits are generally not deducted from a worker’s back pay award. However, back pay damages may still be reduced by the income the employee earned, or reasonably could have earned, from other employment after the wrongful termination or unlawful workplace conduct.
Front Pay
Front pay covers future lost earnings and may apply when returning to the same job is not realistic. For instance, it may be appropriate in situations where the position no longer exists or the professional relationship is too damaged. In most employment lawsuits, front pay is not automatic. Instead, it is discretionary and awarded by a judge or jury.
Lost Benefits
Employee benefits also have substantial financial value, but they are often overlooked in wrongful termination cases. Recoverable losses may include health insurance, 401(k) contributions, stock options, profit-sharing, bonuses, and paid leave.
Courts can calculate these benefits separately from lost wages, thereby significantly increasing the value of a claim. For example, employer-sponsored family health insurance alone may cost $15,000 to $25,000 per year, meaning that even a few months of lost coverage can result in significant damages.
Understanding the ‘Hidden’ Toll of Non-Economic Harm
Non-economic damages compensate employees for the personal toll that wrongful termination or unlawful workplace conduct takes on their lives. These losses are often more subjective and harder to quantify.
Under federal law, Title VII of the Civil Rights Act of 1964 limits the amount of combined compensatory and punitive damages an employee can recover, with caps that vary based on the employer’s size.
By contrast, FEHA does not impose statutory caps on compensatory or punitive damages in employment discrimination cases. This means juries can award non-economic damages, such as emotional distress, humiliation, and reputational harm, without being restricted by a predetermined federal ceiling, often making California claims potentially more valuable.
Emotional Distress
In a wrongful termination lawsuit, emotional distress can cover several different personal impacts, including the following:
- Anxiety
- Depression
- Humiliation and loss of dignity
- Loss of enjoyment of life
- Strain on personal or family relationships
Under FEHA, this is fully uncapped and assessed separately, not folded into a punitive cap as under Title VII. Due to the highly subjective nature of these types of damages, medical records, therapy notes, and psychiatric evaluations can significantly strengthen an emotional distress claim.
Reputational & Professional Harm
Damage to someone’s professional reputation is a very real and negative effect of wrongful termination. For example, an employer may badmouth an employee to others in the industry or mischaracterize why they left. This also includes lost career opportunities, like promotions or leadership roles that are now out of reach. While damages for reputational or professional harm may be recoverable, they require strong evidence.
When Are Punitive Damages Available?
In some cases, employees may also recover punitive damages for especially egregious conduct involving malice, oppression, or fraud. However, this is only awarded when the employer’s behavior constitutes malice, oppression, or fraud as defined under California Civil Code § 3294. The purpose of punitive damages is to hold employers accountable and discourage similar misconduct in the future. To secure it, your lawsuit will require clear and convincing evidence.
Keep in mind that FEHA imposes no statutory cap on punitive damages. This is a major advantage over federal Title VII, which caps combined compensatory and punitive damages at $50k-$300k based on employer size.
Recovery of Attorney Fees and Litigation Costs
The last type of compensation that you may be able to recover in a wrongful termination case is attorney’s fees and litigation costs. If you win an FEHA claim, you may ask the court to award reasonable attorney’s fees and costs, according to California Government Code § 12965.
However, it also covers costs like court filing fees, deposition transcripts, and expert witness fees. In these cases, the employer cannot turn around and make the employee pay their fees unless the case was completely frivolous. This gives the victim an upper hand in avoiding unfair expenses.
What Can Affect the Extent of Recovery in an Employment Lawsuit?
While you may be eligible for numerous types of compensation, there are several factors that can impact how much you are able to receive. In general, the following variables will contribute to the overall recoverable amount:
- Severity and duration of the employer’s conduct: In cases involving long-term injustice or extreme misconduct, employees may be able to pursue additional non-economic damages for emotional distress, or even punitive damages.
- Strength of evidence: Evidence is key to building a compelling case in court. Having extensive proof of wrongful termination and its severity can help to increase your damages award.
- Wage level and career trajectory: Employees who are fired from a high-paying job or a career with long-term growth may be able to make a stronger case for the harm the loss has on their lives.
- Punitive eligibility: Any time you are able to show proof that your employer engaged in extreme misconduct, you may have a case for punitive damages on top of the other compensation you win.
- Where the case is filed in California: Filing in California state court versus federal court can sometimes increase the potential value of a case, depending on the facts and venue.
- Mitigation: After being wrongfully terminated, the employee must make a reasonable effort to find comparable employment. Any money earned, or that could reasonably have been earned, is deducted from the back pay award.
Understanding the Duty To Mitigate and How It Impacts Your Claim
As mentioned before, California law requires employees to make a reasonable effort to find a similar job after being wrongfully terminated, called the duty to mitigate. If you do not pursue this step, the damages you recover may be reduced by what you could have earned if you had looked.
That said, the burden of proof is on the employer. They must prove that comparable work was available and that you, the employee, did not try to find it. This means that you do not have to prove you mitigated. It also means you do not have to accept any possible job so long as it is available. The role has to be reasonably similar in pay, duties, and conditions to the one you previously had.
To protect yourself from any claims your employer may try to make about you failing to mitigate, keep a log of every application, interview, and rejection from any job you pursued.
Get Legal Support in Your Fight for Fair Compensation After a Wrongful Termination
Employees who face wrongful termination can pursue a wide range of damages in an employment lawsuit. Depending on the details of your case, you may be eligible for economic, non-economic, or punitive categories of compensation. However, keep in mind that case values vary widely based on the specific facts.
California’s stronger state-law protections, compared with federal law can make these cases especially favorable for the victim. If you have been wrongfully terminated, do not wait to consult a California employment attorney for a case-specific evaluation. Contact Venardi Zurada today at 833-893-6763 to learn more.
