Determining Mitigation efforts in Wrongful Termination cases

In determining if a Plaintiff made extensive efforts in their job search following their alleged wrongful termination, economic experts should look into several key factors.  Lawyer’s should be very familiar with these factors in order to best represent their client, whether Plaintiff or Defense.

  1. How many jobs has your client applied to and are they similar to the position they were terminated from?  A major point of attack experts should address in their reports will examine if the Plaintiff has performed a sufficiently diligent replacement job search. In Texas, individuals are granted unemployment benefits provided they apply for a minimum of three jobs per week.  This number can be used as the threshold for determining if a Plaintiff has done his or her due diligence in finding replacement employment after the alleged wrongful termination.
  2. How long has the Plaintiff been unemployed?  Widely accepted labor market data from the U.S. Bureau of Labor Statistics can be utilized to determine the average range an individual with a similar job position, in the same job market, would expect to be unemployed.  If the Plaintiff has been unable to find replacement employment within the typical unemployment duration, it is not likely they have performed a sufficient job search.
  3. How many job openings were available in the Plaintiff’s job market at the time of their termination?  Again, data from the U.S. Bureau of Labor Statistics can be utilized to determine job openings per month that the Plaintiff would have been qualified to hold.  In many cases, there are a significant number of job openings in the area the Plaintiff is searching.  Occasionally, a Plaintiff’s job search records will reveal that they have applied to jobs in multiple job markets, sometimes spanning across several states.  To a defense attorney requesting a mitigation analysis, this is music to their ears.  The more markets a Plaintiff makes themselves available to, the more markets experts can include when determining a number of job openings.  This only increases the number of jobs the Plaintiff could have held had they performed a sufficient job search and strengthens the argument that they have not performed such as search.

Employment and Wage & Hour Statistics Focus: Local Area Unemployment Statistics

Local Area Unemployment Statistics (LAUS) is made available by the Bureau of Labor Statistics (BLS), and offers monthly data on employment and unemployment for approximately 7,500 geographic areas. Unemployment rates are available monthly by county, MSA, and state level.

These estimates are key indicators of local economic conditions, and may be compared over time to examine changes in the labor market.

For more information regarding the LAUS, please refer to www.bls.gov/lau

Employment and Wage & Hour Statistics Focus: Current Population Survey

The Current Population Survey (CPS) is a monthly survey of approximately 50,000 households conducted by the Bureau of Labor Statistics (BLS) and the U.S. Census Bureau. The CPS collects a vast amount of data and is an excellent resource for information on labor-force characteristics.

The basic monthly CPS provides general demographic information as well as employment status, industry, and occupation. The monthly survey is often used to examine unemployment rates and the duration of unemployment. The BLS publishes tables reporting the unemployment rate and the average and median duration of unemployment by gender and age, race, or marital status. These tables are generally referenced in wrongful termination cases to show the expected length of time it will take the plaintiff to find a new job.

In addition to the basic monthly survey, the CPS includes monthly supplements. These supplements include displaced workers, job tenure, and mobility, and a demographic supplement (often referred to as the March supplement), just to name a few.

The job tenure supplement can be used to estimate the amount of time an individual would have likely remained at a job if the termination had not occurred. The demographic supplement is often used to determine average and median wages for particular education levels. Additionally, regression analysis can be used to estimate lifecycle earnings for individuals based on their age or years of experience, education, and other pertinent demographic factors.

For more information, please go to www.bls.gov/cps/