Legal Definitions - front pay

Front pay is a monetary award granted by a court to an employee who has been the victim of unlawful employment practices, such as discrimination or retaliation. It represents compensation for future earnings and benefits that the employee is expected to lose from the date of a court's judgment or trial onward, until they can reasonably secure a comparable new job. The primary goal of front pay is to financially compensate the wronged employee for the income they would have earned if the illegal employment action had not occurred, especially when immediate re-employment or reinstatement to their former position is not practical or possible.

Here are a few examples to illustrate how front pay might apply:

• Scenario: Sarah, a highly specialized engineer, was unlawfully terminated due to gender discrimination. Although she won her lawsuit, the court determined that reinstating her to her former position was not feasible due to the severe breakdown of trust with her former employer. Given her niche field, it is estimated that finding a comparable engineering role will take at least 18 months.
  Illustration: The court might award Sarah front pay to cover her lost salary, benefits, and potential bonuses for that 18-month period, starting from the date of the judgment. This compensation helps bridge the financial gap until she can secure a new, equivalent position.
• Scenario: Mark, a manager, reported illegal financial practices at his company and was subsequently fired in retaliation. A jury found in his favor, but the company's leadership remained hostile towards him. The court decided that forcing Mark back into that hostile environment would be counterproductive and potentially harmful to his career and well-being.
  Illustration: Instead of reinstatement, the court could award Mark front pay. This payment would cover his projected lost income and benefits for a reasonable period, allowing him time to find a new management position without suffering immediate financial hardship due to the retaliatory firing.
• Scenario: Elena, a 58-year-old marketing executive, was terminated due to age discrimination. While she is actively seeking new employment, the job market for senior executives in her industry is challenging, and it's anticipated that finding a suitable role will take considerable time, potentially several years, before she reaches retirement age.
  Illustration: A court could award Elena front pay to compensate her for the income and benefits she is likely to lose during the period it takes her to find a new, comparable position, or even until her projected retirement date if re-employment is deemed highly unlikely. This ensures she is not financially penalized for the discriminatory actions of her former employer.