Was an employee wrongfully terminated? What damages should be paid to victims of sex discrimination? What is the effect of a non-compete clause on the value of a firm? Is there statistical evidence of discrimination in hiring or promotions? Did a national sports league engage in price-fixing when it set the salaries of a group of players? These are some of the questions that arise in employment litigation that require economic and statistical analysis.
EI economists provide statistical estimates, such as disparate impact analysis, for the liability phase of discrimination cases. In these types of cases, the economist reviews statistical evidence of differences between the protected group and another group. Defining the appropriate benchmark group is an important part of the analysis. EI also evaluates claims of business need or cost defenses in responding to disparate impact claims.
Damages estimation, which generally includes both front pay and back pay, requires addressing issues such as the appropriate risk factor for discounting, the amount of prejudgment interest, the methodology for valuating fringes benefits, and mitigation earnings. Embedded in the analysis of damages is an analysis of life expectancy and employment expectancy.
EI has testified in both class action and individual cases in District Court, in arbitration hearings, and at “Teamsters Hearings” (hearings for individual members of a class). EI has also prepared damages estimates for use in settlement negotiations.
Previous testimony has included the following:
- Appropriate pre-judgment interest in several race, sex, and age discrimination cases
- Appropriate treatment of risk in computing damages
- Evaluation of the effect on the value of a business of a non-compete clause
- Statistical analysis of disparate impact on alleged race, sex, or age discrimination cases
- Damages for termination of hospital-employed and privileged physicians
- Rebuttal of cost defenses in a race discrimination case
- Damages in wrongful termination cases
- Anthony Brown v. Pro Football Inc. This claim of price fixing wages of practice squad players ultimately went to the Supreme Court and currently defines the boundaries between labor law and antitrust law.
If you are interested in learning more about our labor consulting services offered by Economists Incorporated
, please contact a member of our management team: David Argue
, Jonathan Walker
, Matthew Wright