Economic Analysis 1 CLE Hour

OVERVIEW

Compensatory Damages

Loss of earnings (all forms of compensation) past and future

Benefits, including pension.

No loss of Social Security

Retraining or additional training costs and relocation costs.

The Calculations

Historic Loss (‘back pay’)

Present Value of Future Loss (‘front pay’)

Worklife issues

Wage growth rate

Inflation rate

Discount Rate ‘controversy’

Net discount rate

Tax issue

Salary or compensation basis

Mitigation of loss

Punitive Damages