What Is Mitigation of Damages in Employment Cases?

Suing your employer isn’t just a way to hold them accountable for unlawful treatment. It could lead to you receiving financial compensation. However, employees who file these lawsuits have a legal duty to mitigate damages. What exactly does this mean?

This guide outlines the mitigation of damages in employment cases, including its impact on plaintiffs and defendants. If you’re thinking of filing a claim against your employer, it’s important to understand this key legal requirement. 

Common Types of Cases Employment Attorneys Handle

Employees across several industries may be subject to unlawful treatment in the workplace. They can rely on employment attorneys in San Diego to understand their rights and potentially take legal action against their employers. Attorneys who practice this area of law may represent clients looking to pursue various types of employment claims, including the following:

• Wage theft
• Sexual harassment
• Employment discrimination
• Wrongful termination
• Retaliation

Lawyers need to review evidence to determine whether their client has a case. Assuming the client does have a viable case, an attorney will assist with evaluating damages and filing a lawsuit. While such cases often resolve out of court with an accepted settlement agreement, some go to trial. 

What Does It Mean To Mitigate Damages?

Plaintiffs in various civil lawsuits need to mitigate damages if they want to maximize their case’s potential payout. This legal duty demonstrates that the plaintiff is making reasonable efforts to minimize their losses. Mitigation of damages in employment cases often means that the plaintiff is searching for comparable employment. 

Imagine a 55-year-old worker was recently let go from their job. In the months leading up to their termination, their supervisor repeatedly made offensive comments about their age and expressed a preference for younger employees. Since age is a protected class (when older than 40) under California’s Fair Employment and Housing Act, the fired employee decides to pursue a wrongful termination claim, citing age discrimination. 

They have a duty to minimize their losses by seeking new employment after losing their job. If they fail to do so, their former employer could allege that they are trying to receive more in lost wages. 

How Mitigation Affects Back Pay in Employment Claims

Effective mitigation of damages in employment cases matters because it impacts how much plaintiffs potentially receive in back pay. Take a wrongful termination case, for example.

Let’s say you’re unemployed for six months before finding a job. Showing an effort to minimize your economic losses during this time could require your former employer to compensate for your lost wages, depending on the case’s outcome.

The failure to mitigate damages in wrongful termination cases may harm plaintiffs and potentially reduce settlement payouts. 

What Counts as Proper Mitigation of Damages in Employment Cases?

Don’t panic if you’re unable to land a new job while your case is pending. Making a reasonable effort to find comparable employment would be considered mitigating damages. 

You’re not required to accept a demotion or enter a new line of work to uphold this duty. What if you receive a job offer comparable to your last position and salary, but it’s an unreasonable distance from your home? You’re not obligated to accept the position in order to meet your legal duty. 

However, you may be forfeiting back pay if you refuse a new employment opportunity that’s similar to your last job in terms of pay, position, and location. 

How To Prove You’re Mitigating Damages

To respond to an employer’s defense regarding mitigation of damages, document your job search efforts. Create a list of all of the positions you’ve applied to and keep any email correspondence with prospective employers. Having this documentation can support your claim that you’re trying to reduce your economic losses. 

Your attorney may have additional insights for strengthening your claim. They can advise you on navigating the lawsuit and negotiate settlement offers on your behalf. Those offers may include appropriate back pay from your former employer, depending on your case and whether you’ve mitigated your damages. 

Speak With an Employment Attorney About Your Case

Before you sue for wrongful termination, be mindful of an employee’s duty to mitigate damages in these cases. Without the proper mitigation of damages in employment cases, you could potentially miss out on financial compensation. 

Reach out to D.Law if you’re not sure how to approach an employment lawsuit. Our attorneys have years of experience and guide our clients through this complex process. Call (818) 275-5799 today to request a case evaluation.