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Average Sexual Harassment Settlement Amount

Posted by Eric Kingsley | Jan 05, 2025 | 0 Comments

Settlement for sexual harassment

What is the average sexual harassment settlement? It's a common question for those who have experienced workplace sexual harassment. It's natural to wonder about this, especially when dealing with emotional distress and financial burdens. Understanding potential outcomes and typical settlement figures can provide direction as you consider your legal options.

In 2024, the average settlement for sexual harassment cases in California was $56,200. However, settlement amounts can vary widely depending on the unique circumstances of each case.

This isn't just about money; it's about justice, validation, and rebuilding your life. We'll explore factors that determine settlement numbers and look at real-world scenarios, as legal processes can differ significantly from what's portrayed in media.

Table of Contents:

What Is the Average Settlement Amount for Sexual Harassment Cases?

Determining the average settlement amount for sexual harassment cases can be challenging because settlements vary widely based on the specifics of each case. However, understanding the general ranges can help victims set realistic expectations.

Typical Settlement Ranges

  1. Smaller Cases:

    • Settlements often range from $5,000 to $50,000 for less severe cases where there is limited evidence or the harassment was not prolonged. These cases are typically resolved quickly, often in smaller companies.
  2. Moderate Cases:

    • For cases involving repeated harassment, emotional distress, or some financial losses (such as missed work), settlements generally fall between $50,000 and $150,000. These are common in mid-sized businesses or when an employer wants to avoid bad publicity.
  3. High-Value Cases:

    • Cases involving egregious behavior, significant emotional and psychological harm, or retaliation often settle for $150,000 to $500,000 or more. High-profile cases with strong evidence can push settlements well into the seven-figure range.
  4. Trial Awards:

    • If a case goes to trial, the potential payout can be higher, especially if punitive damages are awarded. Jury verdicts can range from $500,000 to several million dollars, depending on the severity of the case and the jurisdiction. However, trial outcomes are uncertain and come with higher legal costs.

Understanding Sexual Harassment and the Law

Sexual harassment is a form of discrimination, prohibited under Title VII of the Civil Rights Act of 1964. It creates a hostile work environment through unwelcome sexual advances, requests for sexual favors, and other verbal or physical harassment of a sexual nature.

It's a violation of your rights, and you have legal recourse. A sexual harassment lawsuit can help victims of harassment receive the justice they deserve. But how does that play out in practice?

Types of Sexual Harassment

Two main types of sexual harassment exist: quid pro quo and hostile work environment. Quid pro quo harassment involves an exchange of job benefits (like a promotion) for sexual favors.

A hostile work environment occurs when unwelcome sexual conduct becomes so severe or pervasive that it creates an intimidating, hostile, or offensive atmosphere. This can involve constant inappropriate jokes, leering, or unwanted sexual advances. Even if these behaviors don't cause a job loss, they can be devastating.

Factors Influencing Average Sexual Harassment Settlement Amounts

It's difficult to give a precise "average settlement" for sexual harassment cases. Each case depends on unique variables and there are a number of factors at play. The average sexual harassment settlement varies from case to case.

Severity and Pervasiveness of Harassment

The severity and frequency of harassment impact settlement amounts. Was it a single incident or a pattern of behavior? Did it involve physical contact, or was it verbal or visual?

More severe and frequent harassment generally leads to higher settlements. One study of 50 sexual harassment settlements found an average of approximately $53,000.

Type of Harassment

Quid pro quo harassment, directly impacting job status, often leads to higher settlements due to clear damage to career progression. A hostile work environment, while detrimental to well-being, requires demonstrating pervasive harassing behaviors.

Proving a hostile work environment can be challenging. It requires showing how seemingly small actions or words create a hostile atmosphere. However, these behaviors matter when considered together.

Company Size

Larger companies often have higher settlement ranges due to increased legal exposure and potential reputational damage. Many harassment lawsuits against large companies have resulted in significant settlements. Multiple plaintiffs tend to strengthen a case.

Evidence

Clear evidence, like emails, texts, or witness testimonies, is crucial. Many victims don't report, but speaking out and documenting everything is important.

A 2019 report found that while many experience harassment, few formally report. Document times, dates, places, witnesses, and specifics of incidents. Building a harassment case relies heavily on detailed documentation.

Understanding Average Sexual Harassment Settlement Calculations

Here's how sexual harassment settlements are calculated:

Back Pay

Back pay covers lost wages due to harassment. This includes missed raises, denied promotions, and lost employment. You deserve compensation for professional and financial losses.

Front Pay

If you cannot return to work, front pay may compensate for future lost income while job searching. A front pay argument considers the time needed to find a comparable position. A free consultation with a harassment lawyer can help determine how much your harassment case is worth.

Compensatory Damages

These damages account for pain, suffering, emotional distress, and medical costs. This includes therapy for overcoming the emotional effects of harassment. Compensatory damages punitive damages help victims rebuild their lives.

Punitive Damages

Punitive damages penalize the harasser, especially in cases of egregious behavior or employer negligence. Damage caps, varying by company size, limit these damages. Plaintiffs tend to receive higher settlements in cases with punitive damages.

Legal Fees

Settlements often cover attorney fees and legal costs. Consulting with a sexual harassment lawyer can provide insight into potential legal fees.

Real-World Examples and Resources

Real-world cases demonstrate the range of settlement outcomes. Examples include a $2 million settlement against a McDonald's franchise and a $1 million settlement against Del Laboratories. Resources like the EEOC provide valuable settlement data.

When discussing average settlement amounts, it helps to look at real-life examples. While confidentiality agreements often prevent exact figures from being disclosed, here are some general examples based on publicly available cases:

  1. Corporate Workplace Harassment:

    • In a well-known case against a large tech company, a female employee received a $300,000 settlement after enduring verbal sexual harassment from a male supervisor. The case never went to trial, as the company opted to settle early to avoid negative publicity.
  2. Small Business Setting:

    • A waitress in a small restaurant received a $75,000 settlement after being subjected to inappropriate physical touching and comments from her employer. While the payout was lower than in corporate cases, it was significant given the employer's financial constraints.
  3. Severe Emotional Distress:

    • A woman who endured years of harassment, including threats of termination, won $1.2 million after her case went to trial. The settlement included punitive damages to deter the employer from similar behavior in the future.

These examples highlight how the circumstances of the harassment, the company's resources, and whether the case goes to trial can all affect the outcome.

Settling Out of Court vs. Going to Trial

When pursuing a sexual harassment claim, victims often face a critical decision: settle out of court or proceed to trial. Both options have distinct advantages and disadvantages.

Settling Out of Court:

  • Pros:
    • Quicker resolution (often within months).
    • Avoids the stress and publicity of a trial.
    • Guarantees a payout, even if it's lower than what might be awarded at trial.
  • Cons:
    • Settlement amounts may be lower than potential trial awards.
    • Victims often must sign a confidentiality agreement, limiting their ability to speak publicly about the case.

Going to Trial:

  • Pros:
    • Potential for a higher award, including punitive damages.
    • Opportunity to hold the harasser or employer publicly accountable.
  • Cons:
    • Lengthy and stressful process, sometimes lasting years.
    • No guarantee of winning, which means the victim could walk away with nothing.
    • Higher legal costs, which could reduce the net payout.

Many victims choose to settle out of court to avoid the emotional toll of a trial, but for those seeking justice and change, going to trial can be a powerful option.

Common Misconceptions About Sexual Harassment Settlements

There are many misconceptions about sexual harassment settlements. Let's address some of the most common ones:

  1. "Every case results in a six-figure payout."

    • While high-profile cases may result in large settlements, many victims receive more modest amounts, especially in smaller companies or less severe cases.
  2. "Settling means admitting guilt."

    • Employers often settle to avoid the cost and publicity of a trial, not necessarily because they admit wrongdoing. Settlement is a practical choice, not a moral concession.
  3. "You can't sue unless there's physical harassment."

    • This is false. Sexual harassment includes verbal harassment, inappropriate comments, and creating a hostile work environment, even without physical contact.
  4. "You need a mountain of evidence to win."

    • While evidence strengthens a case, credible testimony, corroboration from colleagues, and a history of complaints can also lead to favorable outcomes.
  5. "Settlements are always confidential."

    • While confidentiality clauses are common, not all settlements require silence. Victims can negotiate the terms of confidentiality or refuse it altogether in some cases.
  6. "You have to go to court to get justice."

    • Many cases are resolved without ever stepping into a courtroom. Settlements can provide justice without the emotional toll of a trial.

By clarifying these misconceptions, victims can better understand their rights and options when pursuing a claim.

Conclusion

Determining the average sexual harassment settlement is complex. Each case has unique factors, such as severity, evidence, and legal representation. While finances matter, a settlement also represents healing, accountability, and reclaiming your life.

A settlement can bring more than monetary compensation. Formal inquiries and investigations can expose abuse of power, leading to culture changes and safer workspaces.

About the Author

Eric Kingsley

Eric B. Kingsley is a 2024 "Best In Law" Award winner, 2024 Consumer Attorneys of California Presidential Award of Merit recipient, and has litigated over 150 class actions. He is an AV peer rated attorney and a prolific speaker at various seminars on employment law.

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