It’s not easy to predict how much your workplace discrimination case is worth. Each case is different. Most discrimination cases end in settlements, and settlements often happen behind closed doors (think of the many examples of confidential settlements involving Harvey Weinstein that were later discovered during the “me too” movement). Therefore, a true average settlement amount is not really knowable.
Nevertheless, there are some sources of information to shine light on this question. The EEOC is the federal agency that enforces discrimination laws, and they track some numbers. For 25 years, the EEOC has offered a free mediation program. Mediation is an informal process that relies on a neutral mediator who helps the parties negotiate a resolution, which typically involves the employer paying a settlement amount to the worker.
In 2021 (the most recent year for which there is data), the average outcome from EEOC-sponsored mediation was $26,500. In 2024 dollars, that would be closer to $32,000 (ie, inflation ate away since 2021). This is an average and is not necessarily a typical outcome. Exceptionally high settlements draw the average upward. Below are some factors that affect settlement amounts:
- The size of the employer (ie, the bigger the businesses, the more the potential payout);
- The base pay of the employee;
- How long the employee worked for the company;
- Whether the employee was fired as a result of the discrimination, was demoted because of discrimination, or whether the employee quit on account of the discrimination;
- Whether the employee was a long-term, full-time, part-time, or seasonal worker
- Whether the employee can show they suffered emotional harm in addition to lost wages
Discrimination cases typically result in larger pay-outs if the case goes to trial. By one study, employee-friendly jury verdicts average $150,000 to $250,000. But litigation takes time. Typically, it takes several years before a case gets to trial. As the saying goes, time is money. A larger recovery often takes significantly more time.
Additionally, taking a case to trial involves greater risk. In most employment discrimination cases, a trial is decided by a jury. A jury of strangers carries a wide range of preferences, prejudices, assumptions, and life experiences (for both good and bad). In total, employees who take a case to trial are favored to win about 45% of the time. In a small number of cases, juries not only side with the aggrieved worker but award them a truly large amount. In more than 80% of the cases, however, a jury either sides with the employer or awards a relatively modest amount to the employee. Taking into account that more than half of employees lose their trial and walk away with zero, the true average of trial verdicts is more like $75,000 to $150,000.
We often measure settlement amounts based on the number of months of equivalent wages. For example, in cases where the worker is terminated under circumstances suggesting discrimination and we are able to settle the case without costly litigation, we often find that a worker can obtain between 4 and 8 months’ worth of their wages. In 2022, for example, the average annual earnings for an Arizona worker was $64,000. An Arizona worker who is fired for discriminatory reasons from an “average” job might expect to settle their case for between $21,000 and $43,000.
If you believe you’ve been discriminated against, it’s important to seek an attorney early on. It’s typical for employers to offer a severance deal to workers amounting to roughly one months’ worth of wages. Put differently, employers may ask you to sign an agreement at the time of termination agreeing to accept a relatively small amount in exchange for you giving up the opportunity to bring a future legal claim against them. By accepting a “severance” amount immediately after being terminated, you may give up the chance to seek a larger amount with the help of an attorney down the road.
