The existing economic recession has caused not only high rates of unemployment across the country, but an overall shortage of jobs resulting in increased periods of unemployment for job seekers. One issue that courts will likely need to examine is the impact that the state of the current job market should have on the calculation of damages in employment discrimination actions. Given that damage awards in such cases are designed to make the plaintiff “whole,” attorneys representing employers and employees alike should take into account the state of the current job market, both in formulating their arguments to courts as to the appropriate amount of damages to be awarded, and in analyzing potential liability for settlement purposes.
“Make whole” relief, available to victims of employment discrimination, includes all actions and monetary awards necessary to make a victim of discrimination whole, by placing the individual, as nearly as possible, in the situation he or she would have occupied if the wrong had not been committed. In order to make a victim of employment discrimination whole, courts may award “back pay,” being the amount that the employee would have earned to judgment date in the absence of discrimination.
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