USE CAUTION: AVOID WRONGFUL DISCHARGE, A COSTING APPROACH

JAMES L. NIMNICHT
WOLFGANG W. FRANZ
NANCY GRABER PIGEON

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DOI: 10.2190/4KBH-BM86-MLHE-CVLH

Abstract

Using the framework of employee turnover, this article first discusses wrongful discharge and then attempts to provide a detailed path that may be used to determine likely economic and noneconomic costs associated with a charge of wrongful termination. The types of economic losses that are recoverable are past and future earnings, supplementary benefits, and prejudgment interest. Most laws also require the employer to cover employee legal expenses and payment for intangible losses as well as for liquidated and punitive damages. To avoid these unnecessary costs, employers are encouraged to use caution and follow prescribed human resource procedures when terminating an employee.

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