What Is Front Pay? HR Meaning & Guide | Keka HR

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Front Pay

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    What is front pay?

    Front pay refers to compensation awarded to plaintiffs in wrongful termination, discrimination, or anti-retaliation cases. It aims to make the employee “whole again” by compensating for future lost wages.

    In the US, front pay is a financial award, considered an equitable remedy, given to victims of workplace discrimination by the court as determined by the Equal Employment Opportunity Commission, EEOC.

    how is front pay calculated

    For example, if an employee was wrongfully terminated due to discrimination and the work environment became hostile, a court might award front pay to cover the lost income until the employee finds a new, comparable job. So, if your employer wrongfully fired you, you could legally recover the damages thereafter.

    However, determining the appropriate amount of front pay can be complex. Factors such as future raises, promotions, and economic fluctuations make it difficult to predict future earnings accurately.

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