How Much Do You Get From a Discrimination Lawsuit Settlement?

Employment discrimination is more than just unfair treatment; it’s illegal. Whether an employee was denied a promotion based on race, endured sexual harassment, were ridiculed because of their gender or national origin, or were fired after sharing a disability, there are federal and state laws to protect against discriminatory practices. One of the most common (and most complicated) questions employees ask is: “How much can I get in a workplace discrimination settlement?”

The answer depends on the type of discrimination, the damages suffered, and state laws. In California, New York, and Washington, employees often are protected by stronger employment discrimination laws protections than under federal law.

Types of Compensation in a Discrimination Lawsuit

Discrimination lawsuits are designed not only to compensate employees for what they, lost but also to hold employers accountable for unlawful discrimination. The law divides potential recovery into several categories: economic damages, non-economic damages, punitive damages, and discrimination lawyer’s fees.

Economic Damages

Economic damages include measurable financial losses caused by discrimination:

• Back Pay: The income and benefits an employee lost from the date of the discrimination, such as termination, demotion, or denied promotion, through the date of settlement.
• Front Pay: Future wages an employee would have earned if they can’t be reinstated. Courts calculate it based on an expected career trajectory, job market, and how long it might take to find comparable employment.
• Lost Benefits: Lost health insurance, retirement contributions, stock options, or bonuses can all be recovered as part of an economic loss.
• Medical or Counseling Costs: If someone sought therapy or medical treatment due to the emotional distress of discrimination, those expenses may also be recoverable.

For example, if an employee earned $90,000 per year and was wrongfully terminated for two years before finding another job, the back pay could be more than $180,000, plus lost benefits and interest.

Non-Economic Damages

Non-economic damages cover the human cost of discrimination, like stress, humiliation, damage to reputation, anxiety, or loss of professional standing.

Examples can include:

• Emotional distress caused by being harassed or unfairly disciplined.
• Psychological trauma from long-term hostility or retaliation.
• Harm to personal relationships, confidence, or quality of life.

Non-economic damages are subjective, but significant. Juries and judges assess them based on testimony, medical or therapist records, and the severity and duration of the discrimination.

Typical awards for emotional distress vary widely. Under federal law, Title VII and the ADA limit combined punitive and compensatory damages to a range of $50,000 to $300,000, depending on employer size. But under state law, juries can award a higher settlement agreement.

Punitive Damages

Punitive damages are designed to punish an employer for malicious behavior and deter future violations.

Courts in California (under Civil Code §3294), New York (under the NYC Human Rights Law), and Washington (under WLAD) may award punitive damages if an employer’s conduct shows intentional discrimination, reckless indifference, or conscious disregard for employee rights.

Potential settlement awards for punitive damages can range from small amounts, to millions of dollars in particularly egregious cases. California juries have awarded seven-figure punitive damages when employers ignored clear evidence of harassment or retaliated after complaints.

Attorney Fees

Employment laws recognize that victims of discrimination often can’t afford legal representation upfront. That’s why Lawyers for Justice, P.C. does not charge any upfront costs, and offers a free consultation to speak with an experienced attorney.

Free consultations ensure employees can seek justice, even against large corporations with deep pockets.

Factors That Affect How Much You Keep

Winning a discrimination case is only part of the equation. How much someone takes home in a fair settlement depends on different factors.

Strength of Evidence and Documentation

The strength of a case starts with proof. The more solid the documentation, the stronger a claim can be, and the higher the potential compensation is.

Evidence employees can collect includes:

• Emails, texts, or messages showing sex discrimination, or other types of discriminatory comments.
• Performance reviews that don’t align with the reason someone was terminated.
• Witness testimonies from coworkers or HR.
• Notes or timelines kept documenting incidents.

California, New York, and Washington courts all heavily weigh the credibility of evidence in settlement negotiations. If an employee can show a clear pattern of discrimination or retaliation, their damages can rise substantially.

Severity and Duration

Duration and severity matter. A single offensive age discrimination comment might not lead to someone getting to recover damages, but years of harassment can justify compensation.

Courts also assess whether the discrimination caused long-term effects, like loss of career opportunities, depression, or anxiety requiring treatment.

Employer Size, State Laws, and Other Factors

Under federal laws, the Civil Rights Act of 1991 caps mental anguish and punitive damages based on employer size:

• 15–100 employees: $50,000
• 101–200 employees: $100,000
• 201–500 employees: $200,000
• 500+ employees: $300,000

However, California, New York, and Washington do not follow the same caps under their state anti-discrimination laws. So, an employee suing under state law can receive unlimited compensatory and punitive damages if they have proper evidence.

Offsets, Liens, and Taxes

Not all compensation ends up in the employee’s pocket. Certain amounts may be reduced by liens, offsets, or even taxes.

• Taxes: Lost wages and front pay are taxable as income. Emotional distress damages tied to physical injury are not taxable, but those for emotional harm generally are.
• Attorney’s Fees: Because the attorneys at Lawyers for Justice, P.C. work on a contingency fee basis, a client may receive their earnings, less the attorney’s fees taken from the award amount.
• Liens: If a health insurer or state agency paid medical bills related to the discrimination, they may claim reimbursement (known as a “medical lien”).
• Offsets: Receiving unemployment or disability benefits can sometimes reduce wage-based recovery, depending on state law.

Next Steps for Employees

So, how does someone make sure they get the compensation they deserve?

Steps to Take

If an employee believes they faced discrimination-based treatment, they need to act fast. Legal deadlines (known as statutes of limitation) are strict.

1. Document everything.
Write down incidents, names, dates, and what was said or done. Keep emails, performance reviews, and any written communication.

2. Report internally first (if safe).
Notify HR or a supervisor in writing. This can help preserve someone’s rights and shows that the employer had a chance to fix the problem.

3. File a complaint with the appropriate agency.
Before filing a lawsuit, most discrimination claims must first be filed with:

• EEOC (Equal Employment Opportunity Commission) for federal claims, or
• State agencies like the California Civil Rights Department (CRD), New York Division of Human Rights (NYDHR), or Washington Human Rights Commission (WHRC).

4. Speak with an employment attorney.
An experienced lawyer can evaluate a discrimination or wrongful termination claim, calculate potential damages, and make sure the case is filed correctly, and on time.

How an Employment Lawyer Can Help You Maximize Recovery

Employment discrimination cases are legally complex. A skilled attorney does much more than file paperwork; they help build leverage.

They can:

• Gather Evidence: Lawyers know what records, emails, and testimony will prove discrimination or retaliation.
• Negotiate Settlements: Attorneys can often secure higher settlements by demonstrating the employer’s potential exposure in court.
• Protect Against Retaliation: Legal counsel makes sure their clients are safeguarded if an employer tries to punish an employee for asserting their rights.
• Calculating Realistic Value: A good lawyer factors in lost wages, emotional harm, and future career impact to demand fair compensation.

Call Lawyers for Justice, P.C. for a free consultation today.