Understanding Average EEOC Settlement Amounts (2024)

Understanding Average EEOC Settlement Amounts (1)

If you’ve found yourself facing discrimination or retaliation in the workplace, you’re not alone. Many individuals encounter unfair treatment, sexual harassment, racial discrimination or retaliation from their employers, and seeking justice is not only your right but crucial for ensuring fair treatment in the workplace. One avenue available to you is filing a charge with the Equal Employment Opportunity Commission (EEOC). But what can you expect in terms of the average EEOC settlement amount? Let’s delve into this complex but important topic.

What is the EEOC?

The Equal Employment Opportunity Commission, commonly referred to as the EEOC, is a federal agency tasked with enforcing federal laws against workplace discrimination. These laws prohibit discrimination based on factors such as race, color, sex, religion, national origin, age, disability, or genetic information. The EEOC investigates claims of discrimination and retaliation filed by employees against their employers.

EEOC Charge Process

If you believe you’ve been discriminated against or retaliated against at work, you can file a charge with the EEOC. This process involves submitting a formal complaint outlining the details of the alleged discrimination or retaliation. The EEOC will then investigate the employment discrimination claim, attempting to reach a resolution between you and your employer through mediation or other means.

Should I Hire an Employment Lawyer Before Going to EEOC?

While it’s not mandatory to have legal representation when filing a charge with the EEOC, consulting with an experienced employment lawyer can be highly beneficial. An attorney can provide valuable guidance throughout the process, ensuring your rights are protected and advocating on your behalf during negotiations with your employer or the EEOC.

How Can I Seek Compensation for Damages Resulting from Employment Discrimination?

Seeking compensation for damages resulting from employment discrimination or retaliation involves several steps and considerations. Here’s a guide on how to seek compensation for these damages:

  1. Document Incidents: Keep records of discriminatory or retaliatory actions, including dates, witnesses, and communications.

  2. File with EEOC: Initiate the process by submitting a charge to the Equal Employment Opportunity Commission (EEOC) online, by mail, or in person.

  3. Consult an Attorney: Seek guidance from an employment lawyer specializing in discrimination cases to assess your options.

  4. Evaluate Damages: Work with your attorney to assess economic and non-economic damages suffered.

  5. Negotiate Settlement: Allow your attorney to negotiate with the employer for a settlement that compensates for damages.

  6. File Lawsuit: If negotiations fail, consider filing a lawsuit in civil court with the assistance of your attorney.

  7. Enforce Judgment: Ensure compliance with settlement terms or court orders to receive owed compensation.

  8. Monitor Compliance: Keep tabs on the employer’s compliance with settlement terms and take action if necessary with your attorney’s guidance.

What is the Average Settlement for a Discrimination or Retaliation Claim?

Based on data from the Equal Employment Opportunity Commission (EEOC), the typical settlement amount for employment discrimination claims stands around $40,000. Nevertheless, settlements or verdicts can vary significantly, potentially reaching seven figures, contingent upon the specific details and complexities of each case.

Factors Influencing Settlement Amounts

Several factors can influence the size of an EEOC settlement:

Nature of Discrimination or Retaliation

The type of discriminatory or retaliatory conduct alleged in the complaint can have a significant impact on the settlement amount. Cases involving egregious acts of discrimination or retaliation may result in higher settlement amounts.

Extent of Damages

The damages sought by the claimant, including compensatory and punitive damages, play a crucial role in determining the settlement amount. Compensatory damages are intended to compensate the claimant for financial losses and emotional harm suffered, while punitive damages are designed to punish the employer for egregious misconduct.

Strength of Evidence

The strength of the evidence supporting the claimant’s allegations is another key factor. Cases with compelling evidence of discrimination or retaliation are more likely to result in favorable settlements.

Employer’s Track Record

The employer’s track record regarding previous discrimination or retaliation claims may also influence the settlement amount. Employers with a history of similar violations may be more inclined to settle to avoid negative publicity and potential legal repercussions.

Legal Representation

The quality of legal representation can significantly impact the outcome of a discrimination or retaliation claim. Experienced employment lawyers who specialize in handling such cases are adept at negotiating favorable settlements on behalf of their clients.

What is My Employment Discrimination Case Worth?

There are specific caps on compensatory and punitive damages that an individual can receive, contingent upon the size of the employer:

  • Employers with 15-100 employees have a cap of $50,000.

  • Employers with 101-200 employees face a cap of $100,000.

  • Employers with 201-500 employees have a cap of $200,000.

  • Employers with over 500 employees have a cap of $300,000.

What Kinds of Damages Can I Recover in an Employment Case?

In an employment discrimination case, you may be entitled to recover various types of damages, including:

  • Back Pay: Compensation for wages and benefits lost as a result of the discrimination or retaliation under the Equal Pay Act.

  • Front Pay: Compensation for future lost wages and benefits if you’re unable to return to your previous position.

  • Compensatory Damages: Monetary compensation for emotional distress, pain and suffering, and other non-economic harm.

  • Punitive Damages: Additional compensation awarded to punish the employer for particularly egregious conduct and deter future misconduct.

  • Attorney’s Fees: In some cases, the prevailing party may be entitled to recover reasonable attorney’s fees and court costs.

Potential Outcomes of EEOC Charges

  1. Mediation or Conciliation: In employment discrimination cases, the EEOC will attempt to facilitate a voluntary settlement between the parties through mediation or conciliation. If successful, this can result in a mutually agreeable resolution without the need for litigation.

  2. Filing a Lawsuit: If mediation is unsuccessful or not pursued, you may have the option to file a employment discrimination lawsuit against the employer. Your attorney will represent your interests in court and advocate for fair compensation for the harm you’ve suffered.

  3. Settlement Agreement: If a lawsuit is filed, the parties may still choose to settle the case at any stage of the litigation process. Settlement agreements typically involve the payment of a specified amount of money in exchange for releasing the employer from further liability.

How Attorneys Can Assist You in a Discrimination or Retaliation Case

An attorney can play a crucial role in assisting individuals who are pursuing discrimination or retaliation claims through the Equal Employment Opportunity Commission (EEOC) or through litigation. Here’s how an attorney can help:

  1. Legal Guidance and Expertise: Attorneys provide knowledgeable guidance on employment law and navigate the legal process on your behalf.

  2. Investigation: They gather evidence crucial for your case, like documents and witness statements.

  3. Assessment: Attorneys evaluate your case’s strength and chances of success.

  4. Strategic Planning: They devise a plan tailored to your situation, whether it’s filing a complaint or going to court.

  5. Representation Before EEOC: Attorneys handle all communication and negotiations with the EEOC on your behalf.

  6. Litigation Representation: In court, attorneys provide strong representation, presenting your case convincingly.

  7. Negotiation Skills: Attorneys negotiate settlements, aiming for the best outcome for you.

  8. Protection Against Retaliation: They safeguard you from employer retaliation, taking legal action if needed.

  9. Maximizing Compensation: Attorneys work to ensure you receive full compensation for your losses.

Understanding Average EEOC Settlement Amounts (2)

Unlock Your Path to Justice with BLG

Facing discrimination or retaliation in the workplace can be a daunting experience, but you don’t have to navigate it alone. The EEOC provides a vital avenue for seeking justice and holding employers accountable for unlawful conduct. By understanding the average employment lawsuit settlement amount and the factors that influence it, you can better prepare yourself for the legal process ahead. Remember, seeking the guidance of an experienced employment lawyer can greatly increase your chances of obtaining a fair and just outcome in your case.

At BLG, we understand the complexities of employment discrimination claims. Our team of experienced attorneys is dedicated to advocating for your rights and securing the compensation you deserve. Don’t let discrimination or retaliation go unchecked, take the first step towards justice today.

Contact BLG to schedule a free consultation.

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Understanding Average EEOC Settlement Amounts (2024)

FAQs

What is the average payout for EEOC? ›

What is the Average Settlement for a Discrimination or Retaliation Claim? Based on data from the Equal Employment Opportunity Commission (EEOC), the typical settlement amount for employment discrimination claims stands around $40,000.

How to calculate a discrimination settlement? ›

There is no magic formula to figure out what your case is worth. And while every case is different, some factors come up in most cases. The amount of the employee's economic loss is always important to consider. The seriousness and severity of the employer's or harasser's conduct is always important as well.

What is the compensatory damages limit for EEOC? ›

Limits On Compensatory & Punitive Damages

There are limits on the amount of compensatory and punitive damages a person can recover. These limits vary depending on the size of the employer: For employers with 15-100 employees, the limit is $50,000. For employers with 101-200 employees, the limit is $100,000.

How does EEOC settlement work? ›

Settlement is an informal process. The goal of settlement is to reach an agreement that is satisfactory to all parties. There is no admission of liability. If the parties, including EEOC, reach a voluntary agreement, the charge will be dismissed.

Is an EEOC settlement taxable? ›

There are usually two components to asserted damages in an employment termination claim, and therefore to any settlement of such a claim: (1) compensation for economic losses such as back pay, and (2) compensation for emotional distress harm. Both are considered taxable “income” by the IRS.

What is the most common EEOC claim? ›

The most frequently alleged bases of discrimination were retaliation (39.2%), sex (35%), disability (34.3%), and race (16.8%). At the end of FY 2023, the EEOC had 227 merits cases on its active district court docket, of which 95 (41.8%) were class or systemic cases.

How to calculate a settlement amount? ›

To determine a potential settlement value, they first combine the total of medical expenses to date, projected future medical expenses, lost wages to date and projected future lost income. The resulting sum is then multiplied by the pain and suffering multiplier value to produce a projected settlement amount.

What are the odds of winning an EEOC complaint? ›

Q: What Are the Chances of Winning an EEOC Case? A: The EEOC has a very high success rate when it comes to court decisions, reaching favorable outcomes in nearly 96% of all district court cases stemming from EEOC complaints.

How do you calculate settlement pay? ›

Using a dedicated Settlement Agreement calculator is the best way to gain an accurate estimate based on your circ*mstances. As a rule of thumb, though, you can expect to receive a pay-out that is equivalent to between three and six months' worth of your salary in addition to your notice pay and accrued holiday pay.

What happens when the EEOC finds an employer guilty? ›

If the employer declined EEOC mediation, the case may proceed to litigation, increasing risks and potential costs. If found guilty, employers might face significant financial penalties, including back pay and legal costs.

How do you negotiate a discrimination settlement? ›

Seek legal advice: Consult with an experienced employment discrimination attorney throughout the negotiation process. They can provide valuable guidance, help you evaluate settlement offers, and ensure that your rights are protected.

What happens if you win an EEOC case? ›

If the EEOC finds that I was discriminated against, what can I get? If the EEOC finds discrimination, we will work with your employer to fix the situation. You could receive money damages as part of that process. We also can seek promotions, reinstatement, and other workplace changes for you.

What is the average EEOC settlement? ›

According to the Equal Employment Opportunity Commission (EEOC), the average settlement for employment discrimination claims is about $40,000. However, depending on the facts and circ*mstances of the case, settlements or verdicts can climb to seven figures.

What makes a strong retaliation case? ›

A strong retaliation case must show three things: An employee faced discrimination or harassment in the workplace. They reported the incident. The employee was then fired, demoted or otherwise punished for their complaint.

How much is a retaliation lawsuit worth? ›

Average Retaliation Lawsuit Settlements
SeverityAverage Settlement Amount
LowBetween $5,000 and $25,000
MediumBetween $25,000 and $50,000
HighBetween $50,000 and $100,000

What is the highest paid discrimination lawsuit? ›

Sanford Heisler Sharp McKnight achieved the largest jury verdict in U.S. history in an employment discrimination case. A jury awarded $253 million after finding the pharmaceutical giant liable for gender discrimination in pay, promotions, and relating to pregnancy.

How long do most EEOC cases take? ›

Generally, you must allow the EEOC 180 days to resolve your charge. Although, in some cases, the EEOC may agree to issue a Notice of Right to Sue before the 180 days.

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