Question

Josh worked for the Johnson Boat Works Company as a maintenance welder for 15 years. At the beginning of each five years of employment, Josh signed a five-year work agreement with the company. Soon after Josh had signed a new five-year agreement, Josh was fired by the new owner of the company. At the time of his firing, Josh was making $25 an hour and his employer-paid benefit package, which included health care and other government mandated items, was worth about 20% of his wages. Although Josh started looking for a new similar job right away, it was eight months before he got a new job. The new job pays $22 per hour, but it is on a contract that pays no benefits other than his wages. On advice from his attorney he recently filed a wrongful discharge case against Johnson Boat Works.

Assume that the Johnson Boat Works Company is found liable for the firing of Josh. Also assume a 40-hour work week and a 52-week work year. Josh worked for 13 weeks during the first year at the new job. Assume that he continued to work at his new job for all of years two and three, and that during the fourth and fifth years, Josh lost his contract job and had to work a minimum wage job at $15,000 a year with employer paid benefits that amounted to 10% of his wages. Using only the information above, what is the total amount of damages suffered by Josh during the entire five-year contract period?

Answer 1

Josh suffered a total amount of damages of $169,840 during the entire five-year contract period after being wrongfully discharged.

Step-by-step explanation:

The total amount of damages suffered by Josh during the entire five-year contract period can be calculated as follows:

1. Loss during the initial unemployment period (8 months):
   
   Lost wages = ($25 x 40 hours x 4 weeks x 8 months) + (20% benefits x $25 x 40 hours x 4 weeks x 8 months) = $40,000 + $8,000 = $48,000
2. Loss during the first year at the new job (13 weeks):
   
   Lost wages = ([$25 - $22] x 40 hours x 13 weeks) + [(20% - 0%) x $25 x 40 hours x 13 weeks] = $1,560 + $2,600 = $4,160
3. Loss during the years two and three at the new job:
   
   Annual loss = 2 x ([$25 - $22] x 40 hours x 52 weeks) + 2 x [(20% - 0%) x $25 x 40 hours x 52 weeks] = 2 x $6,240 + 2 x $10,400 = $12,480 + $20,800 = $33,280
4. Loss during years four and five due to minimum wage job:
   
   Annual loss = 2 x ([$25 x 40 hours x 52 weeks] - $15,000) + 2 x [(20% - 10%) x $25 x 40 hours x 52 weeks] = 2 x $37,000 + 2 x $5,200 = $74,000 + $10,400 = $84,400

Adding all these losses together gives us the total amount of damages Josh suffered:

$48,000 + $4,160 + $33,280 + $84,400 = $169,840.