People who are faced with cases that involve compensatory damages undoubtedly have questions throughout the whole process. Any type of legal issue can be a scary experience when not armed with the right information. Read below where Experts have answered many questions regarding Compensatory Damage.
Compensatory damages also known as actual damages are paid to compensate a person who files a claim of personal loss or medical injury suffered as a result of another person’s breach of duty. Compensatory damages are what the claimant would have actually been awarded if they did not have a personal loss or any type of harm or damage suffered as a result of this breach of duty. Compensatory damages would include medical expenses, wage loss, repair, or replacement value.
There is not a minimum or maximum compensatory damage amount. Compensatory damages are based on the actual loss/damages. In most cases of a hostile work environment the plaintiff would no longer be working at that place when they file a claim. So the compensatory damages would be based on the gross wages lost. The court or agency will then decide for how long the plaintiff should receive this amount. The damage amount is determined on a case by case basis and is subject to specific details of the case.
Compensatory damages are awarded to the claimant for loss, injury, or harm caused by the breach of duty. When discrimination is discovered, the purpose of the law is to place the victim in the exact position as if the discrimination never occurred and then to possibly award money as a solution. Compensatory damages can be awarded for losses or suffering inflicted due to the discriminatory act of conduct.
See Carey v. Piphus U.S. 247,254 (1978)): This reasoned that the purpose of damages is to “compensate persons for injuries caused by the deprivation of constitutional rights." Compensatory damages "may be had for any proximate consequences which can be established with requisite certainty," and include damages for past pecuniary loss (out-of-pocket loss), future pecuniary loss, and nonpecuniary loss (emotional harm/pain and suffering).
Any settlement for compensatory damages that is based on lost wages would be subject to taxation. Individuals would typically have to pay the taxes on the money just like it was a regular paycheck. The employer or insurer will insist on getting a portion of the amount for the state and federal taxes. You would only have to pay taxes on the amount from the settlement that was actually the compensatory damages amount. The other amounts such as attorney’s fees and emotional distress that might have been awarded are not taxable to the individual.
In most instances that the EEOC discovers discrimination the individual would have actual compensatory damages. This would be the loss of money out of pocket as a result of the discrimination. In some cases an individual may have out of pocket expenses due to the discrimination that they will have to pay in the future. These are labeled as actual future compensatory damages. An actual amount to ask for regarding compensatory damages will be based on loss of current and future wages, current and future medical bills for treatment resulting for the discrimination, and for the non- pecuniary compensatory damages, which is at maximum $300,000.
Knowing the right facts and having a good understanding of compensatory damages can help when faced with questions about compensatory damages. Experts can help answer questions about compensatory damages fast and affordable in the comfort of your own home.
I spoke with my attorney who said that the EEOC will probably mediate my claim with my employer. But what if my employer does not want to mediate and denies all charges of discrimination? Will the EEOC dismiss my claim or allow me to sue? And if all parties agree to mediate, what am I looking for in a settlement? Some kind of severance package? And what to ask for in a severance package?
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