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What Is the Average Payout for Wrongful Termination?

Average Payout for Wrongful Termination

Wrongful termination occurs when an employee is fired for an unlawful reason. This could happen because of discrimination in the workplace, violations of state or federal employment laws, or businesses failing to follow internal policies regarding firing and layoffs.

A wrongfully terminated employee could be entitled to compensation for the financial losses they suffer due to job loss in Tennessee. But what’s the average payout for wrongful termination? Turn to the Employment and Consumer Law Group for answers.

Our accomplished attorneys fight on behalf of employees subjected to illegal work environments and unfair employment practices. And because our law firm focuses exclusively on employment matters, we have a competitive edge in this complicated and ever-changing area of the law. Let us help you understand and enforce your legal rights if you have been wrongfully terminated.

Call our firm today for a free initial consultation with an experienced wrongful termination lawyer.

What Is a Wrongful Termination Settlement?

A wrongful termination settlement is an agreement-upon amount of money that an employer agrees to pay a worker who alleges that they were unlawfully fired from their job. Many wrongful termination claims settle long before a case goes to trial.

Both employees and employers prefer settlements. Employees get the financial compensation or other relief they want more quickly if they settle. Employers also benefit from a settlement because they avoid the uncertainty of a trial and the embarrassment of having unfavorable details about their practices revealed in a public setting.

A wrongful termination settlement can provide an employee with certain kinds of relief, such as financial compensation or reinstatement to employment.

At Will vs. For Cause Employment Termination

Most employees are employed “at will.” With at-will employment, an employer can fire an employee for any reason, as long as it does not violate state or federal law or public policy. The employer is not required to give any reason to the worker explaining their termination. This can make proving wrongful termination from at-will employment challenging but not impossible.

Employees who are not employed at will may be fired “for cause.” That means they are fired for a specific reason, such as stealing or embezzling funds.

If an employee with an employment contract is terminated for reasons not outlined in the agreement, or if their termination fails to follow the process outlined in the contract, they could have a wrongful termination claim. However, the employee’s claim could also be characterized as a breach of contract claim. A wrongful termination lawyer can help you understand the difference between the two.

Wrongful Termination Average Settlement Amounts

A wrongful termination settlement can provide compensation for a wide range of losses, including:

  • Lost wages from the date of termination to the date of settlement or the date the worker found new employment
  • Differences in wages or income between the employee’s prior and new employment
  • Loss of job benefits, such as health insurance, pensions, or stock options
  • Out-of-pocket expenses, such as costs incurred in a job search for new employment
  • Emotional distress, if the employee was subjected to a hostile work environment before termination

A wrongful termination settlement may also include additional compensation for punitive damages if it’s considered likely that the case will proceed to trial. Punitive damages are awarded in wrongful termination trials when an employee was subjected to intentional harassment and discrimination by the employer.

Lawyers are often asked: “What’s the average settlement for wrongful termination?” Many wrongful termination settlement amounts fall in the range of $5,000 to $80,000, though some payouts can reach into the millions. Factors that could affect the value of a wrongful termination settlement include your wages or income in your old job versus your new job, as well as whether you experienced harassment and discrimination during your employment.

Tips to Get a Fair Wrongful Termination Settlement in Nashville

To maximize your recovery in a wrongful termination settlement in Nashville, follow these tips:

  • Write a journal of the events leading up to your firing, especially if you suspect that you may have been terminated for an unlawful reason.
  • Keep copies of all relevant documents, including your employment contract (if any), your employee handbook, email threads, and any papers you received upon termination.
  • Maintain a record of any bills or receipts for expenses incurred due to your termination, as well as pay stubs or wage statements from your previous job and any new job you obtain.
  • Get help from a wrongful termination attorney. Claimants represented by legal counsel tend to secure larger settlements than those who try to handle their case alone. Ask about whether filing a wrongful termination lawsuit is a possibility. Employers often become willing to settle to avoid the prospect of trial.

Contact a Wrongful Termination Lawyer in Nashville

If you suspect you were wrongfully terminated from your job, contact the Employment and Consumer Law Group today for a free consultation. With extensive knowledge of employment laws in Nashville, TN, our attorneys can provide the aggressive legal representation you need for a full and fair settlement. Call or contact us today to get started.

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