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Front pay is the term used to describe compensatory damages awarded to plaintiffs in cases involving employment discrimination or anti-retaliation. In other words, front pay is the sum of money given to a dismissed worker to make up for lost wages that:
The ultimate objective is to provide the plaintiff with as much financial compensation for lost wages as is possible as a result of discrimination or retaliation.
Restoring the plaintiff to their old position or work, which they had lost, without losing pay, benefits, or seniority, is known as reinstatement. When the plaintiff cannot be reinstated, such as when the position has already been replaced or no longer exists, front pay is instead granted. In some circumstances, front pay is also given when reinstatement is conceivable but will not be an option due to factors specific to each claim. For instance, if the plaintiff's return to their previous employer is no longer recommended because of the defendant-overwhelming employer's hatred or rage.
Back pay is the term used to describe the wages and benefits that a company owes to a worker after a wrongful termination or worker retaliation. These are the earnings that an individual would have made had they not been let go from their position. The employee's earnings and benefits from the day of termination to the day the judge ruled in the employee's favor are added together to determine back compensation. If a worker receives back pay, the employer is not obligated to pay it if the worker accepts an unconditional offer of reinstatement to their prior position or one that is comparable within the business.
As was already said, front pay is given to an employee as compensation while they look for a similar position or employment at another company. An employee is compensated in advance when they are unable to return to their prior position. In this instance, the old employer is not currently hiring.
The amount of front pay that should be granted to a plaintiff is not to be determined using a set formula. The judge decides how much forward pay is owed. However, when deciding the amount of front pay, a court may take a number of things into account. The following are a few things to take into account when deciding on front pay:
The time frame starts from when the plaintiff filed their discrimination or anti-retaliation complaint until the court grants them a victory.
In circumstances of discrimination, wrongful termination, or anti-retaliation, plaintiffs may be granted front pay as an equitable remedy or form of damages. Front pay's objective is to give compensation that can help victims of job discrimination get back on track and be "made whole" in spite of the discrimination they endured. The person will be able to recover financially if they receive upfront payment. Ideally, it will be able to reimburse them for the wages they would have made in the absence of job discrimination.
As an illustration, an employer might have fired an employee in error as retaliation. The worker made the decision to file a lawsuit, which she ultimately won. The employee's prior role was abolished during the course of the two years. Reinstatement will be impossible as a result. The employee in this situation is entitled to advance payment to make up for missed salary, emotional hardship, and the two-year incapacity to locate equivalent employment.
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