Your base salary before the adverse action
Health insurance, 401(k) match, life insurance, etc.
Average annual bonus, commission, or incentive pay
Termination, demotion, or other adverse action date
Your current salary at your new job
How long you have been actively searching
Total state/federal unemployment benefits collected
All earnings from employment since the adverse action (includes part-time, freelance, etc.)
How many more years you would have worked at that employer
Expected annual raises
Present value discount
Enter your employment and compensation details, then click "Calculate Economic Damages" to see your back pay, front pay, and total damages estimate.
Frequently Asked Questions
What is back pay in an EEOC discrimination case?
Back pay is the compensation you would have earned from the date of the adverse employment action (termination, demotion, or failure to hire) through the date of judgment or settlement. It includes lost salary, wages, bonuses, commissions, and the value of lost benefits such as health insurance and retirement contributions. Back pay is reduced by any mitigation earnings the employee received during the period.
What is front pay and when is it awarded?
Front pay is compensation for future lost earnings when reinstatement to your former position is not feasible or practical. Courts award front pay to cover the difference between what you would have earned in your old position and what you can reasonably expect to earn going forward. Front pay is typically calculated using a present-value discount to account for the time value of money and is awarded for a reasonable period, often 2 to 5 years depending on the circumstances.
How is back pay taxed in employment discrimination cases?
Back pay in employment discrimination cases is taxed as ordinary income in the year it is received, even though it may represent wages from multiple prior years. This can push you into a higher tax bracket. Under IRC Section 1341 or the claim-of-right doctrine, you may qualify for income averaging or other tax relief. Attorney fees in employment discrimination cases may be deductible above the line under IRC Section 62. Consult a tax professional for your specific situation.
What is the duty to mitigate damages in an EEOC claim?
In employment discrimination cases, the employee has a legal duty to mitigate damages by making reasonable efforts to find comparable employment. This means actively searching for jobs, applying to reasonable positions, and accepting suitable offers. Any earnings from mitigation employment are subtracted from the back pay award. However, the employer bears the burden of proving the employee failed to mitigate, and the employee is not required to accept a position that is substantially different from the former role.
Can I receive both back pay and front pay in my discrimination case?
Yes, you can receive both back pay and front pay in a discrimination case. Back pay covers the period from the adverse action to the judgment or settlement date. Front pay covers future lost earnings from the judgment date forward. Together with benefits losses, they constitute your total economic damages. Courts may also award compensatory damages for emotional distress and, in some cases, punitive damages, which are separate from economic damages.
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