Most people are employed at will in New Jersey. This type of employment means that employers can fire employees whenever they want and for nearly any reason. At-will employees can likewise quit their jobs at any time and for any reason. However, employers can’t terminate someone based on an illegal reason or in violation of a contract. Employees who are wrongfully terminated have a right to pursue lawsuits to recover compensation for their losses. Here is some information from the wrongful termination attorneys at Swartz Swidler about the types of damages that might be available in a wrongful termination lawsuit.
Damages in a Wrongful Termination Lawsuit Based on Unlawful Discrimination
The damages that might be recoverable in a wrongful termination lawsuit based on illegal discrimination depend on whether you file your lawsuit under state or federal law. In general, the recoverable damages for wrongful termination claims based on illegal workplace discrimination include the following:
- Back pay for lost wages from the date of the unlawful termination until trial, which will be reduced if you got a new job based on your earnings
- Front pay from the time of trial going forward if you haven’t found a new job or have secured a lower-paying position
- Value of lost benefits because of your termination
- Out-of-pocket costs
- Pain and suffering damages for non-economic losses
- Injunctive relief to require your former employer to do something
- Potential job reinstatement
- Attorney’s fees and court costs
- Punitive damages to punish an employer’s outrageous conduct
If your lawsuit was filed under federal law, your total compensatory and punitive damages will be capped based on the number of employees an employer has as follows:
- 15 – 100 – $50,000
- 101 – 200 – $100,000
- 201 – 500 – $200,000
- 501 and up – $300,000
Federal age discrimination wrongful termination lawsuits have different rules. If you were terminated wrongfully based on your age, you can’t receive both compensatory and punitive damages. However, the court might order your employer to pay liquidated damages in the same amount as your backpay when the employer knew its actions were illegal or acted in reckless disregard to their potential illegality.
Under New Jersey law, the following damages might be available:
- Front pay
- Back pay
- Lost benefits
- Emotional distress
- Attorney’s fees
New Jersey doesn’t cap compensatory and punitive damages in discrimination lawsuits.
Wrongful Termination Lawsuits Based on Breach of Contract
While most people are employed at will, some work under employment contracts. Employers must comply with contractual provisions that guarantee employment and state that the employees will not be fired except for specific reasons. If an employer fires an employee in violation of the employment contract, the employee can file a breach of contract lawsuit.
Damages in a wrongful termination case based on an employer’s breach of an employment contract will depend on the contract’s terms. For example, if your employment contract stated that you would be paid $150,000 per year for five years and were fired without cause after working for two years, you could pursue the $450,000 you should have been paid for the final three years. You would also be allowed to pursue lost benefits, commissions, stock options, and bonuses that were guaranteed in your contract.
However, you will be legally obligated to search for a new position to minimize your losses. If you find a new job, the wages you receive will be subtracted from the contracted amount. For example, if you find a new position that pays $100,000 per year immediately following your wrongful termination, you could recover the $50,000 per year difference between your new salary and your former one for the remainder of the contracted period.
Pain and suffering damages and punitive damages are not available in breach of contract lawsuits. You will only be able to recover your attorney’s fees and court costs if your contract includes a clause that provides the right to them to the winner of a breach of contract lawsuit.
Damages in Wrongful Termination in Violation of Public Policy
New Jersey recognizes the rights of employees to file wrongful termination lawsuits when they are fired in violation of a mandatory public policy. These types of cases are highly fact-specific and might include situations in which an employee was fired for reporting for military duty, serving on a jury, refusing to engage in illegal conduct, or participating in an investigation of the employer’s illegal actions.
The damages that might be recoverable in a case involving wrongful termination in violation of public policy include the following:
- Lost wages
- Lost benefits
- Pain and suffering
- Attorney’s fees and costs
- Punitive damages when the employer’s conduct was particularly egregious
Damages for Wrongful Termination in Violation of a Statute
Certain statutes define the damages available in a wrongful termination lawsuit when those laws are violated. For example, under the federal Family and Medical Leave Act, the statutorily allowed damages for failing to reinstate an employee to their job following leave include the following:
- Lost wages
- Lost benefits
- Attorney’s fees
- Court costs
- Liquidated damages equal to the employee’s pecuniary losses
Consult an Employment Lawyer
If your employer terminated you for an illegal reason, you might be thinking about filing a wrongful termination suit. You should consult the attorneys at Swartz Swidler. We can review what happened and explain your rights and the wrongful termination damages that might be available. Call us at (856) 685-7420 to schedule a free case evaluation.
