EcoFin, Inc.

Wrongful Termination

Wrongful Termination occurs all-too-often for a variety of reasons, including discrimination and retaliation. While an individual has the responsibility to mitigate damages, alternative employment opportunities often do not pay as much and/or have fewer benefits. The Wrongful Termination Economist calculates the economic loss of earnings and employment benefits in the same manner as that of the Personal Injury Economist program. A major departure from both the Personal Injury Economist and Wrongful Death Economist programs, however, is the fact that any damages recovered in a wrongful termination cause of action are taxable by the Internal Revenue Service. Thus, the Wrongful Termination Economist also determines the before-tax award that is equivalent to the after-tax losses. In most cases, this will result in a major upward adjustment to the after-tax losses due to the fact that the accumulation of a relatively small amount per year over many years for someone in a low tax bracket is recovered all at once, resulting in the individual’s income being extremely high in the year that an award is received.

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