Experiencing discrimination at work is one of the most aggravating things that can happen to you.
You work hard for years, do your job, and then it all gets taken away from you in an instant. And what’s worse, it’s for a reason that’s completely out of your control. Age, disability, race, gender, etc.
And when you realize you’ve been the victim of discrimination, the first thing that pops into your head is…
How much am I actually going to get from a discrimination lawsuit?
The reality is, the answer to that question can vary massively depending on your specific case. But there are a few things that affect the value of a discrimination lawsuit, and if you know what they are, you can get an idea of what to expect.
Let’s take a look!
Here’s what you’ll find in this article:
- How Damages in Discrimination Lawsuits Work
- Factors that Affect Your Settlement
- Recent Trends in Compensation
- Real Numbers from Recent Discrimination Cases
How Damages in Discrimination Lawsuits Work
So you’ve probably heard this question a bunch:
“How much do you get from a discrimination lawsuit?”
And it’s natural to wonder about that. But here’s the deal: it’s not that simple. The amount of damages in a discrimination lawsuit depend on a variety of factors that are specific to your case.
Kind of like this:
In discrimination lawsuits, the damages a plaintiff can recover typically consist of several components that add up to a total award. Some of these are straightforward… Others are not so much.
The most straightforward to calculate are economic losses, such as lost wages, benefits you should have received, and other out-of-pocket expenses related to the discrimination you faced. For example, if you were wrongfully terminated and unemployed for half a year, that’s six months of salary you should have been paid but weren’t.
But there’s more to it than that.
Non-economic damages are the other category of compensation. These are designed to compensate for the more intangible things you suffered as a result of the discrimination, such as emotional distress, pain and suffering, and loss of reputation. They’re harder to value, but they can be substantial. Punitive damages can also be included in certain cases where the employer acted with egregious misconduct.
The Numbers Are Actually…
Wondering what numbers actual discrimination cases settle for these days?
According to recent research, the median settlement for an employment discrimination case is just $40,000. The average is even higher because of the long tail at the high end. But that “average” is somewhat misleading due to the extreme range of settlement amounts.
It’s not uncommon to see cases settle for as low as $5,000 to $10,000 in employment discrimination cases, especially where the discrimination is less severe or provable. At the same time, there are hundreds of millions of dollars changing hands every year at the higher end of the scale.
Here’s what’s also cool about this:
The EEOC won nearly $700 million for employees and job applicants in fiscal year 2024 alone. These are record numbers, and they show that the EEOC is stepping up their game. Employers know these numbers — and you should know them too.
But hold up on that excitement train for just a second.
Remember the part about settlements including everything from small mediations to class actions where there are many plaintiffs? Well, most of these huge numbers are at the class action end of the spectrum. If you only have a single-plaintiff case, the numbers may not be as eye-popping.
Factors That Matter in Discrimination Cases
Ok, so what does it take to go from a $10,000 settlement to a $500,000 verdict?
Let’s find out…
Evidence
This is THE biggest factor. If you have strong, indisputable evidence, you’re looking at bigger numbers.
Emails where managers express discriminatory intent? Performance reviews that prove you were treated unfairly? Witnesses that saw everything go down? Those things matter a lot. They can multiply the value of your case tenfold.
In contrast, cases that rely on a “she said, he said” argument and lack solid documentation are much harder to value.
Discrimination Type
Certain types of discrimination tend to settle for more money. Disability cases are one example since these often involve failure to accommodate in addition to the discrimination itself. Sexual discrimination cases, particularly those involving harassment, can also fetch six-figures.
Gender identity and age discrimination cases are also increasingly hitting high numbers in recent years.
Employer Size
This is something that many people aren’t aware of…
Federal law places limits, or caps, on certain types of damages based on the size of your employer. Here are the federal caps depending on your employer’s size:
- 15-100 employees = $50,000 cap
- 101-200 employees = $100,000 cap
- 201-500 employees = $200,000 cap
- Over 500 employees = $300,000 cap
These caps only apply to compensatory and punitive damages under federal law. The important distinction is that economic damages such as back pay and out-of-pocket expenses are not subject to these caps.
Your Lost Wages & Benefits
The longer you are out of work, the more you’re owed back pay and benefits. If you were making $100K a year and couldn’t find a job for two years due to a wrongful termination, that’s $200k right there before any emotional distress damages.
Recent Trends Driving Higher Awards
Here’s a little-known fact about the current state of discrimination lawsuits…
Cases are trending larger.
Settlements and verdicts have been trending upward for some time. The EEOC is more aggressive than it’s been in years. They filed 110 lawsuits in fiscal year 2024, and won 97% of them.
Juries are also more sympathetic to plaintiffs. Awareness about workplace discrimination has increased substantially in recent years, which has affected public opinion and jury attitudes.
Remote work is also bringing more discrimination into the open with email and other digital records.
Settlement or Trial: Which Is Better?
Ok, there’s one more thing to talk about…
Most discrimination lawsuits settle. And for good reason.
Trials are expensive, stressful, and a roll of the dice. You might win big… Or lose everything. Settling gives you some certainty and a faster resolution.
But the tradeoff is that settlements are usually lower than what you could get from a successful verdict.
What to Expect From Your Case
Ok, here’s the bottom line…
There are a lot of unknowns in every case. If your lawyer tells you exactly how much you’re going to win before they even see your evidence, I’d advise against working with them.
But that said, here are some general guidelines:
Weak evidence/minor discrimination cases will likely settle in the $5k-$25k range. These are cases where proving discrimination would be difficult, or where the damages suffered were relatively limited.
Medium-strength cases with some good evidence and quantifiable damages typically fall in the $40k-$100k range. This is where the vast majority of single-plaintiff cases end up.
Strong cases with clear, compelling evidence and significant damages have a good shot at reaching $200k-$500k or more. These cases usually involve either egregious behavior by the employer, large lost wages, or both.
Exceptional cases with overwhelming evidence, sympathetic facts, and large employers have the potential to reach millions. These are the top 1% of all cases.
Understanding It All
Damages in a discrimination lawsuits aren’t one-size-fits-all.
The amount of money you can recover varies based on the evidence in your case, the damages you can prove, your employer’s size, and other factors that are unique to your case.
But here’s the thing to keep in mind:
Recent years have shown that compensation is on the rise. Enforcement agencies are cracking down, and employers are more aware of discrimination claims than ever.
If you’re facing discrimination at work, don’t let uncertainty about the compensation amount stop you from speaking to a lawyer. Understanding damages in discrimination lawsuits is the first step to recovering what you deserve.