Thomas Roney, President of Thomas Roney LLC, recently presented papers, “Estimating Duration of Economic Damages in Wrongful Termination Cases” at the NAFE sessions at the Western Economic Association International conference in Seattle, Washington and “Factors to Consider When Estimating Economic Damages from Wrongful Termination” with Nora Ostrofe at the Southern Economics Association meetings in Atlanta, Georgia.
In both the short and the long term, workers who lose a job and then find another job see earnings decline, on average. The recent studies differ on the types of data relied on, the periods studied, and the geography considered, but there is a consensus that a job loss has long lasting and serious adverse effects on earnings for most workers. Shorter job tenures, the growing incidence of permanent layoffs vs. temporary layoffs, and the lengthening unemployment periods evident in the current recession have exacerbated these negative effects. These facts will impact the calculation of economic damages in wrongful termination cases.