K2 Economics, Inc.

Next week the K2 team will be exhibiting at CAALA Vegas. Please visit us at booth 205. If you have any cases that may need an economist to calculate the damages, please come see us. We will give you a free consultation for any case. We specialize in personal injury, employment law, and medical malpractice matters.

⚖️Wrongful Termination, Comparable Employment, and Mitigation⚖️ In wrongful termination cases, loss of earnings and benefits are calculated in a similar manner as they would be in personal injury cases. That is, the forensic economist will look at the income and benefits an employee received from their employer and calculate those losses for a specific period of time. In employment cases, the Plaintiff has the duty to try to mitigate their losses by finding comparable employment. It is the responsibility of the Defendant to prove whether or not the Plaintiff failed to mitigate damages. It is also important to focus on the idea of comparable employment. Unlike PI cases, Plaintiff’s that are suing for wrongful termination are not obliged to take on any job available as part of their mitigation efforts. A doctor earning $400,000 a year is not obligated to work a minimum wage job as part of his mitigation efforts just because there is a job available. In order for a job to be considered comparable, the position, location, pay, benefits, hours should all be similar to the job they had before the subject termination. If a post-termination job is not comparable, it may not be considered an offset and deducted from the Plaintiff’s loss of earnings/benefits. For any inquiries regarding a wrongful termination case, please call our office for a free consultation today! economist

🎉 Exciting News for Attorneys! 🎉 K2 Economics is thrilled to announce our participation in the upcoming Consumer Attorneys Association of Los Angeles (CAALA) Las Vegas Convention from August 31 to September 2, 2023! 🌟✨ Join us at Booth #802 and discover how our expert insights are shaping the future of economics in the legal landscape. 📈💼 Don't miss out on networking, learning, and exploring how K2 Economics can elevate your cases. See you there! 👋🤝

🌐💼 Explore the World of K2 Economics! 🌐💼 We offer a range of services to attorneys to help them get the best outcome for their case!
💼 Economic Analysis: Our expert economists dig deep into financial data to provide accurate and reliable economic analysis for legal cases and financial matters. 🔍📈
💼 Expert Testimony: Our seasoned economists are adept at providing compelling expert testimony that strengthens your legal arguments. ⚖️🎙️
💼 Business Valuation: Whether you're buying, selling, or settling disputes, our team delivers comprehensive business valuations to inform strategic decisions. 💼💰

🔍 Ready to explore how our services can transform your financial approach? Contact us today or visit our website for more information! 📲💼

🧩🌐 Completing the Damages Puzzle with K2 Economics! 🧩💼 Just like a puzzle piece fits seamlessly into the bigger picture, our expert economic analysis fills in the gaps to provide comprehensive solutions regarding the damages of any legal matter. 📊🔍
💡 From assessing damages to providing expert witness testimony, our team's expertise ensures that your damages puzzle is complete and your case is well-prepared. 📈🎯
📲 Reach out to us today and let's create a complete and successful damages strategy together! 🤝🎯

In Alvarado v. Dart Container Corporation of California, the California Supreme Court clarified how non-discretionary bonuses should be included in the calculation of overtime pay for non-exempt employees. The case involved a dispute over the overtime pay calculation for employees who received non-discretionary flat-sum bonuses. The Court rejected the alternative calculation method used by Dart Container, which divided the bonus by the total number of hours worked and added it to the employee's regular rate of pay. Instead, the Court held that non-discretionary bonuses should be divided by only the regular non-overtime hours worked during the pay period to calculate the employee's regular rate of pay. This regular rate of pay, which includes the bonus, is then multiplied by 1.5 for each overtime hour worked. The ruling provides more consistent compensation for non-exempt employees who receive non-discretionary bonuses.

In Alvarado v. Dart Container Corporation of California, the California Supreme Court clarified how non-discretionary bonuses should be included in the calculation of overtime pay for non-exempt employees. The case involved a dispute over the overtime pay calculation for employees who received non-discretionary flat-sum bonuses. The Court rejected the alternative calculation method used by Dart Container, which divided the bonus by the total number of hours worked and added it to the employee's regular rate of pay. Instead, the Court held that non-discretionary bonuses should be divided by only the regular non-overtime hours worked during the pay period to calculate the employee's regular rate of pay. This regular rate of pay, which includes the bonus, is then multiplied by 1.5 for each overtime hour worked. The ruling provides more consistent compensation for non-exempt employees who receive non-discretionary bonuses.

Tip for Attorneys: When reviewing a Plaintiff’s W2 forms, you not only see how much they earn a year, but can also get a glimpse of their benefits. Box 12 of the W2 has important information relating to damages. “D” refers to deferred income, ie how much an employee was contributing towards a 401k or 403b plan. Most employers match a specific percentage of an employees contributions as a retirement benefit. “DD” refers to the amount the employer paid towards the employee’s heath benefits. Whenever an employee is unable to work due to a personal injury or wrongful termination, the benefits are an important component of the damages. Using the W2’s alone, you can get a general sense of an employees earnings AND benefits!

The Fed today hinted that they may not continue with the interest rate hikes in their ongoing battle against inflation. This sent the treasury yields down. For attorneys, interest rates play a critical role for their damages. The higher the interest rates, the lower the present value damages will be.

According to a study published in the Journal of Legal Economics, the use of forensic economists can have a significant impact on legal settlement values. The study found that cases in which forensic economists were retained by attorneys resulted in larger settlements on average. In personal injury cases, for example, the use of a forensic economist led to an increase in settlement values ranging from 13% to 45%. Additionally, the study found that the use of forensic economists in employment cases resulted in larger settlements as well. Specifically, the study found that wrongful termination cases involving a forensic economist resulted in an increase in settlement values of up to 74%. While the impact of forensic economists on legal settlement values can vary depending on the case, these statistics suggest that the use of a forensic economist can be beneficial for attorneys seeking to maximize settlement values for their clients.

Excited to see everyone at in a few days! Please stop by our booth and say hi!

Big news for Med Mal attorneys. After several decades, a deal was reached to adjust the pain and suffering cap of $250,000. MICRA was passed in the 70’s and the $250,000 cap has not adjusted to inflation. Here are some excerpts from the article, you can read the rest on The LA Times.

Economists at Goldman Sachs are predicting that the US economy would grow by a whopping 8% in 2021. This would be the highest growth since 1951 and mark a complete recovery from the pandemic. They also predict inflation to remain low at 2.1%. Most economists, however, believe the economy will grow by 4-5%.

Latest Life expectancy tables released today. California ranks second in the country (behind Hawaii). At birth, the average life expectancy for a male in California is 78.4 years and 83.1 years for a female. West Virginia ranks last with the average Life Expectancy being almost 6.5 years less than California.

Have any questions about economic damages??? Our senior economist, Dr. Arsine Khayoyan will be answering your questions. Comment or direct message your questions and a video will be posted answering them next week!

Senate Bill 447 aims to restore the right of a Plaintiff or their loved ones to pursue human suffering damages even if they die before their trial date. California is currently only 1 of 5 states that doesn’t allow Plaintiffs to collect non-economic damages if they die before the trial. Any thoughts?

A component of future damages can be the loss of retirement benefits.  The 2 main types of retirement benefits are defined benefit plans (traditional pensions) and defined contribution plans (like a 401k).  The two types of plans are very different.  For pension plans, an employee will have an idea of what amount his/her pension will pay out per year upon retirement.  For defined contribution plans, the employee has more risk and uncertainty.  When calculating loss of retirement benefits, the present value loss of a defined benefit pension will usually be significantly higher than a defined contribution plan.

K2 Economics is a California based expert economic consulting firm with a team of highly qualified Ph.D. economists.  We provide expert witness testimony & custom, cost-effective damages reports for trials and mediations for both Plaintiff and Defense.

March is Women’s History Month. K2 Economics is a proud woman-owned business. Our senior economist, Arsine Khayoyan is one of the handful of female Ph.D expert economists.

The CBO just released its 10-year economic outlook. GDP projected to grow at 3.7% in 2021. From 2021-2025, growth is estimated to be 2.6% with unemployment gradually declining year by year, reaching pre-pandemic levels in 2024.
The 10-year Treasury is also predicted to increase, reaching 3.4% in 10 years (today it is 1.37%).

Just released: the first full picture of the pandemic’s effect on American expected life spans. The average life expectancy dropped from 78.8 years to 77.8 years. The racial and ethnic disparities also increased. For the Black population, the life expectancy decreased by 2.7 years in the first half of 2020, wiping away 20 years of gains. This is the widest the life expectancy gap has been between Black and white Americans since 1998. This drop is largely contributed to Covid-19 and experts don’t believe it will last long.

In a wrongful death case, make sure you don’t overlook Household Services as a component of damages.  Household Services can be well over $20,000 per year and they don’t end at retirement.  The loss of Household Services is usually calculated up to the Healthy Life Expectancy (which is generally just a few years less than the overall Life Expectancy. The expert economists at K2 Economics ensure all components of damages are properly accounted for.

You focus on what you do best. Leave the math to us

Truly remarkable how personal consumption expenditures took such a dive in April of 2020 when the lockdowns first went into effect.

Medical Inflation has historically been 1.5%-2% higher than the CPI. With the recent pandemic, prices for medical services continue to rise at a higher rate. If you have a client that will require significant future medical care, it is important to have an economist on the case to accurately capture the present value of future medical care services.