Retaining an economist in a wrongful termination matter means scoping the engagement to the compensation the employee lost when the employment ended, including the benefit accruals that stopped, and to the replacement earnings that reduce it. The engagement letter should state the damages period, whether front pay and pension losses are claimed, and how the job search will be documented. The records request should reach the employer's pay and plan records early, because pension and retiree health losses for a long-tenured employee depend on plan terms the employee does not hold.
Checklist
Run the conflict check on the employee, the employer, and counsel
State the damages period and the components in scope: back pay, front pay, benefits, and pension losses
Request the employer's pay records, raise practices, and pension and retiree health plan documents
Document the job search and any replacement employment with its pay and benefits
Confirm the report deadline against the discovery schedule
Questions to ask the economist
How do you value a defined benefit pension loss for an employee terminated before full vesting or retirement eligibility?
How do you treat retiree health coverage the employee would have qualified for?
What evidence do you rely on to bound the front pay period?
How do you treat replacement work with lower pay or fewer benefits?
Timeline
About one week for retention and the records request, then two to four weeks of analysis after the pay and plan records arrive, then one to two weeks for the draft and final report.
Required documents
W-2s, pay stubs, and bonus or commission records
Pension, retiree health, and equity plan documents and account statements
Employer records of pay progression and expected tenure
Records of the job search and replacement employment
Common pitfalls
Overlooking the plan documents, so pension and retiree health losses cannot be valued
Setting the damages period without a stated basis, which the opposing side attacks first
Letting the job search go undocumented, which weakens the mitigation position at deposition
How does the economist handle a replacement job the employee has not yet found?
By stating a reasonable period to find comparable work based on the employee's age, occupation, and local job market, and by applying replacement earnings from that point. The report shows the result under alternative periods and updates when the employee finds work.
Why does the economist ask for the pension plan documents rather than the employee's benefit statement?
Because the benefit statement shows the accrued benefit at termination, while the plan documents contain the formula, the vesting schedule, and the early retirement provisions that determine what the employee would have received with continued service. The loss is the difference between the two benefit streams, and it cannot be valued without the formula. The employer holds the documents, so the request goes through discovery.
How is the damages period set in the engagement?
Counsel states the period the claim covers and whether front pay is sought; the economist supports the length of any front pay period with the employee's age, occupation, tenure, and the job market evidence, and shows the result under alternatives. Fixing the period at retention keeps the report and the pleadings aligned.
References
U.S. Bureau of Labor Statistics. (n.d.). Current Population Survey (CPS). U.S. Department of Labor. bls.gov
U.S. Bureau of Labor Statistics. (n.d.). Employer Costs for Employee Compensation (ECEC). U.S. Department of Labor. bls.gov
U.S. Department of the Treasury. (n.d.). Daily Treasury par yield curve rates. home.treasury.gov