Work and Employment
Discrimination Settlement: What to Expect and What to Ask For
This guide explains discrimination settlements, covering what to expect, what you can ask for, types of damages, factors affecting settlement amounts, and the steps to reach an agreement.
By:
Chelsea Spinos
Reviewer:
Timothy Lenahan, Esq.
13 min read • June 25, 2024
Key takeaways
Workplace discrimination involves unfair treatment based on protected characteristics like race, gender, age, disability, religion, sexual orientation, or pregnancy, all of which are safeguarded by federal laws.
Damages in a discrimination settlement include 1) compensatory damages, 2) punitive damages, 3) injunctive relief, and 4) attorney fees and costs.
Discrimination settlement amounts can depend on factors such as the strength of evidence, extent of damages, the employer’s conduct, and the employer’s history.
Manifest Law's experienced employment attorneys can evaluate your case, advocate for your rights during negotiations, handle all employer communications, and work to secure the discrimination settlement you deserve. Book a free consultation to learn more.
Have you ever wondered what happens after you've decided to take action against discrimination in the workplace? What discrimination settlement amount should you ask for? How much compensation is reasonable? And what does the process really look like?
Discrimination settlements are not just about money—they're about justice, accountability, and creating safer workplaces for everyone.
Whether you've faced unfair treatment due to your race, gender, age, disability, or any other protected characteristic, understanding the discrimination settlement process is crucial for advocating for your rights effectively.
This guide will explain discrimination settlements, walking you through what to expect and what you can realistically ask for. We'll explore the types of damages available, factors that influence settlement amounts, and the step-by-step process of reaching an agreement.
Before taking legal action, it’s important to understand the various types of employment discrimination.
Racial Discrimination
Racial discrimination happens when someone is treated unfairly because of their race or skin color. This could mean not getting hired, being passed over for promotions, or being paid less than others.
For example, if you notice that only people of a certain race are getting promoted even though others are equally qualified, that may be a case for discrimination in the workplace
Age Discrimination
Age discrimination usually affects workers over 40. It includes not getting hired, being forced to retire, or being passed over for promotions because of age. The law protects older employees from such unfair treatment, ensuring that everyone has a fair chance based on their skills and experience, not their age.
Disability Discrimination
Disability discrimination means treating people unfairly because they have a disability. Employers are required to provide reasonable accommodations to help employees with disabilities do their jobs.
If your employer refuses to make these accommodations or treats you unfairly because of your disability, you may have a discrimination case.
Religious Discrimination
Religious discrimination happens when someone is treated unfairly because of their religious beliefs. This can mean not allowing time off for religious holidays or forcing someone to participate in activities against their beliefs.
National Origin Discrimination
National origin discrimination involves treating someone unfairly because of where they’re from, their ethnicity, or their cultural background. This can include making fun of someone’s accent or not giving them opportunities because of their heritage.
Gender Discrimination
Discrimination based on gender or sexual identity includes unfair treatment due to someone being lesbian, gay, bisexual, transgender, or any other sexual orientation or gender identity. This could be through hurtful comments, exclusion, or unequal opportunities.
Retaliation
Retaliation happens when an employer punishes an employee for reporting discrimination in the workplace. This could mean being demoted, getting a pay cut, or even being fired. There are laws to protect you from retaliation, so if you faced backlash from an employer after speaking up, you may have a discrimination case.
Check out our comprehensive guide on retaliation to learn more.
Understanding discrimination laws
Type of workplace discrimination
Racial discrimination
Gender discrimination
Age discrimination
Disability discrimination
Religious discrimination
Sexual discrimination
Pregnancy discrimination
Law for protection
Title VII of the Civil Rights Act of 1964 says that employers with 15 or more employees can't treat people unfairly because of their race, color, religion, sex, or national origin.
Title VII of the Civil Rights Act of 1964 says it's illegal for employers to discriminate against employees on the basis of gender, including in hiring, promotion, compensation, and other terms and conditions of employment.
The Equal Pay Act of 1963 makes it illegal to pay women less than men for doing the same job. It applies to almost all employers, regardless of the number of employees.
The Age Discrimination in Employment Act (ADEA) makes it illegal for employers to discriminate against older employees when it comes to hiring, firing, promotions, pay, and other employment decisions.
The Americans with Disabilities Act (ADA) is a key federal law that makes it illegal for employers with 15 or more employees to discriminate against qualified individuals with disabilities.
The Rehabilitation Act of 1973 prohibits disability discrimination by federal agencies and organizations that receive federal funding.
Title VII of the Civil Rights Act of 1964 protects employees from discrimination based on their religion, covering everything from hiring to firing.
Title VII of the Civil Rights Act of 1964 makes it illegal for employers to treat you unfairly because of your sex. It also says that sexual harassment, like unwanted advances or offensive comments, is against the law.
The Pregnancy Discrimination Act (PDA) of 1978 makes it illegal for employers to treat pregnant employees unfairly.
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Gathering evidence for your discrimination case
Evidence is essential to prove that discrimination has occurred. Without evidence, it becomes a "he said, she said" situation, making it difficult to establish that the unfair treatment was based on your protected characteristic (such as race, gender, age, etc.). Solid evidence helps demonstrate the pattern and extent of discrimination, making your case more credible and compelling.
Here’s a list of types of evidence that can support your discrimination case:
Emails and messages: Save all communications showing discrimination.
Performance reviews: Keep copies of evaluations, especially if they are unfair.
Coworker statements: Get written statements from colleagues who witnessed the discrimination.
Promotion records: Compare your promotions with others in similar roles.
Salary information: Document any pay disparities.
Medical records: Get documentation if workplace discrimination has caused health issues.
Official complaints: Keep records of filings with agencies like the EEOC, and internal reports with HR.
Evidence of retaliation: Note the timing of these actions to link them to your complaint.
How does evidence impact a discrimination settlement?
Having strong evidence significantly impacts the settlement negotiation process in several ways.
When you have compelling evidence, you have more leverage in negotiations. The employer may be more inclined to settle favorably rather than risk going to trial and potentially losing. Oftentimes, employers prefer to settle out of court to avoid the costs, time, and publicity of a trial. Strong evidence makes it more likely they will agree to a settlement to avoid these potential downsides.
And, with strong evidence you are in a better position to negotiate a higher discrimination settlement. Employers may offer more substantial compensation to resolve the case quickly (and confidentiality).
Remember: Evidence also lends credibility to your claims. Employers and their legal teams are more likely to take your case seriously if you can provide solid proof of discrimination.
Compensatory Damages
Compensatory damages are intended to compensate you for the harm caused by workplace discrimination. They cover financial losses and emotional distress resulting from the discriminatory actions.
Financial Losses: This includes back pay (lost wages and benefits) if you were fired or not hired due to discrimination in the workplace.
How it’s determined: The amount of compensatory damages depends on the severity and impact of the discrimination on your life and career. Documentation and evidence of financial losses play a crucial role in determining the compensation amount.
Learn more about what back pay is, and how to calculate back pay, in our comprehensive guide.
Punitive Damages
Punitive damages are meant to punish the employer for especially malicious or reckless conduct and to help prevent similar behavior in the future.
Punitive damages are awarded in cases where the employer’s actions were particularly harming, demonstrating a willful disregard for your rights.
How it’s determined: Courts consider factors such as the employer’s behavior, intent, and the degree of harm caused. These damages are less common and typically require clear evidence of intentional misconduct.
Injunctive Relief
Injunctive relief is a court order requiring the employer to take specific actions to remedy the discrimination in the workplace and prevent it from happening again in the future.
This may include reinstating you to your job, providing reasonable accommodations for disabilities, or implementing anti-discrimination training for employees.
When it applies: Injunctive relief aims to rectify ongoing discrimination or prevent future occurrences. It focuses on changing policies or practices within the company to promote a fair and inclusive workplace.
When negotiating a discrimination settlement, it's important to consider various forms of compensation and remedies.
Here's what you might ask for in a discrimination settlement:
Compensatory Damages:
Back pay: Lost wages and benefits from the time of discrimination to the settlement date
Front pay: Future lost earnings if reinstatement isn't possible
Punitive Damages:
Additional monetary compensation to punish the employer for particularly egregious behavior
Note that these are less common and typically require clear evidence of intentional misconduct
Neutral Reference:
Ensure your employer provides a neutral or positive reference for future job applications
Non-Disclosure Agreement (NDA):
There will be a non disclosure agreement as a part of every settlement
Remember, the specific items you ask for will depend on the details of your case, the strength of your evidence, and the applicable laws.
It's advisable to work with an experienced employment attorney who can help you determine the most appropriate and realistic demands for your situation.
Reach out to get an evaluation the strength of your case.
When it comes to workplace discrimination lawsuits, the amount of compensation you might receive varies depending on several key factors related to the discrimination you faced.
Several factors determine how much compensation you might seek:
Strength of Evidence: The evidence you have proving discrimination is crucial
Extent of Damages: The financial losses caused directly by the discrimination
Employer’s Conduct: How severe and widespread the discriminatory behavior was
Employer’s History: Whether your employer has a track record of discrimination
In cases of discrimination in the workplace, you can typically seek compensation for lost wages, emotional distress, and punitive damages. While there’s no limit on lost wages, emotional distress and punitive damages are capped at $300,000 under laws like Title VII and the ADA. However, other laws may allow for higher amounts if the discrimination involved severe misconduct.
Most discrimination cases settle out of court, with average settlements around $40,000 according to the EEOC. However, depending on your case specifics, settlements or court awards can range into seven figures.
Predicting the exact value of your case can be complex, as every situation is different. We commend consulting with an experienced employment attorney for a more accurate estimate of a discrimination settlement.
Our team at Manifest Law can assess the strength of your case, estimate potential damages, and guide you through negotiations or court proceedings.
For past clients of our employment attorneys at Manifest Law, we have recovered the following amounts for discrimination settlements:
Discrimination case
During the COVID work-from-home period, our client, diagnosed with physical and mental health issues, provided HR with documentation. When the employer requested a return to the office, her doctor recommended accommodations due to disabilities, including continued remote work. Despite her successful remote work during the pandemic, the company deemed the accommodation unreasonable and terminated her, offering a small severance package.
A client came to us concerned that she was going to be fired. Her previous manager understood that she had various health issues that didn't interfere with her job of designing high fashion clothes. However, her new manager required that she carry heavy garments to photo shoots, and required her to be on her feet often 8+ hours in a day, despite doctors notes saying she couldn't do so. After an argument with her boss, she was ultimately terminated.
Our client worked for years at a department store without an issue. When she received a new manager, things began to change quickly. The new manager was a white woman. The manager consistently made inappropriate comments about our client's natural hair, even suggesting she wear a wig for better customer response. Despite reporting the manager to HR, the issue persisted. The client was then terminated for alleged performance-related reasons.
Our client was relentlessly harassed by his supervisor based on his sexuality. This behavior spread throughout the staff, and the harassment was relentless. Our client complained to the business’s owner who told him “that’s just how [your supervisor] is, he doesn’t mean anything by it.” This abusive behavior led to our client developing mental health issues to the point where he quit his job.
Settlement amount
$130,000
$90,000
$60,000
$75,000
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When it comes to disability discrimination cases, the settlement amount can vary based on the complexity and severity of the discrimination you faced.
Providing an average for gender discrimination lawsuit settlements is challenging because this information is usually kept private once a case closes. Sometimes, settlement amounts are a matter of public record, like in cases involving the state. Settlement amounts can vary widely.
As with other discrimination cases, the average settlement amount for a case of pregnancy discrimination can vary depending on a variety of factors.
While the discrimination settlement process can be lengthy, it can save time and effort compared to a lengthy investigation. The goal is to reach a fair agreement that satisfies both sides. If an agreement is reached, the charge is closed, and the terms are legally enforceable.
Most importantly, settling avoids the stress and uncertainty of a prolonged legal battle, giving you a faster resolution and the chance to move forward smoothly.
Let’s take a look at the process for settlement:
Start by meeting with an employment attorney who specializes in discrimination cases. Book a free consultation with Manifest Law, and our team will review your situation, explain your legal rights, and help you understand what to expect.
Our employment attorneys at Manifest Law have helped countless individuals with discrimination settlements. Our team will evaluate your situation thoroughly, examining evidence and identifying the strongest legal arguments to support your claim.
During negotiations, our attorneys act as your advocate, striving to secure a favorable settlement that addresses your concerns and protects your rights. Plus, they handle all communications with your employer during the process.
Our goal is to help you achieve a resolution that brings closure to the discrimination you've experienced, and get you the discrimination settlement you deserve.
What are the chances of winning a discrimination case?
The chances of winning a discrimination case depend on various factors such as the strength of evidence, the credibility of witnesses, and the legal arguments presented. If you have solid evidence supporting your claim and can demonstrate that discrimination occurred based on a protected characteristic (like race, gender, or disability), your chances of success increase.
Consulting with an experienced employment attorney can help assess the strengths and weaknesses of your case and provide guidance on the likelihood of a favorable outcome.
How long does it take to reach a discrimination settlement?
The timeline to reach a discrimination settlement can vary widely depending on factors like the complexity of the case, the willingness of both parties to negotiate, and court scheduling if litigation is involved.
Settlement negotiations can range from a few months to over a year, depending on how quickly both sides can agree on terms.
Some cases settle early in the process through mediation, while others may require litigation, which can prolong the timeline significantly.
Can I negotiate a discrimination settlement without going to court?
Yes, you can negotiate a discrimination settlement without going to court. Many discrimination cases are resolved through negotiation, mediation, or arbitration.
These methods allow both parties to discuss terms and reach a mutually agreeable settlement outside of the courtroom.
Negotiating a settlement can often save time and costs associated with litigation. An experienced employment attorney can represent your case and guide you through the negotiation process.
What happens if my employer refuses to settle?
If your employer refuses to settle, the case may proceed to trial. At trial, a judge or jury will hear evidence and arguments from both sides and make a decision on whether discrimination occurred and what damages, if any, should be awarded. Going to trial means both parties present their case in court, and the outcome is determined by legal standards and the facts presented during the trial.
Will signing a settlement agreement affect my ability to find future employment?
Signing a settlement agreement with a confidentiality clause can restrict your ability to discuss the terms of the settlement publicly. This confidentiality is often designed to protect both parties and prevent future disputes. However, it typically does not affect your ability to find future employment.
We recommend that you review the terms of any settlement agreement with an employment attorney before signing.
Can I still file a discrimination lawsuit after signing a settlement agreement?
Once you sign a settlement agreement, it typically resolves the discrimination claim outlined in the agreement. This means you generally cannot file a new lawsuit based on the same discrimination claim covered by the settlement.
However, settlement agreements can vary, and it's essential to review the terms carefully with your attorney. In some cases, settlement agreements may include exceptions that allow for future legal actions under specific circumstances.
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