The amount you can receive from a workplace discrimination lawsuit depends on your evidence, damages, and the severity of your employer's conduct. While some cases could settle for $5,000 to $100,000, others involving serious or repeated discrimination can reach six or seven-figure settlements. The answer isn't simple because discrimination settlements and verdicts vary widely based on the specific circumstances of your case.

Below, I explain what determines your potential payout and what you might expect from a discrimination claim in California. You will learn the factors that influence settlement amounts, the types of damages you can recover, and what you can realistically expect from a discrimination lawsuit.

If at any point you would like to speak with a workplace discrimination attorney about your claim, simply fill out the form on this page to schedule your free consultation with Kingsley Szamet Employment Lawyers.  With $300 million in verdicts and settlements, and many decades of experience, our firm has helped victims just like you navigate the legal system and get justice.

Key Points - Table of Contents

• What is the Average Settlement for a Discrimination Lawsuit?
• Types of Damages In A Discrimination Case
• Settlement Examples by Case Type
• Understanding the EEOC Process and How It Affects Your Payout
• Timeline of a Discrimination Lawsuit
• Consulting With An Experienced Attorney
• What Are The Odds Of Winning A Discrimination Case?
• How Much Should I Ask For In A Discrimination Case?
• Los Angeles Discrimination Attorney
• Frequently Asked Questions

What is the Average Settlement for a Discrimination Lawsuit?

There is no single nationwide "average" that fits every employment discrimination lawsuit because outcomes vary dramatically based on the law involved, your provable damages (lost wages, benefits), non-economic harm (emotional distress), the strength of evidence, and whether a case proceeds to trial or resolves early. I talk more about this in detail in the complete guide to California workplace discrimination that I wrote. Some plaintiff-side estimates and calculators cite common single-plaintiff settlement ranges in the $5,000 to $100,000 area for typical out-of-court resolutions, but this is a rough industry estimate rather than an authoritative government statistic. High-value cases, including class actions, can reach millions of dollars. For EEOC-sponsored mediations, recent snapshots put average mediation outcomes in the low-to-mid-$20,000s in some years, but results vary widely.

What Factors Determine the Amount of a Discrimination Settlement?

Several critical factors influence how much compensation you might receive in a discrimination lawsuit. Understanding these elements can help you assess the potential value of your case:

• The Strength and Type of Your Evidence: Documentation like emails, text messages, performance reviews, and witness testimony significantly strengthen your case and increase its settlement value.
• The Severity and Duration of the Discrimination: Cases involving prolonged or egregious discrimination typically result in higher compensation than isolated incidents.
• Provable Damages: The extent of your financial losses, including lost wages and benefits, along with documented emotional distress directly impacts your settlement amount.
• The Employer's Size and Conduct: Larger employers with deeper resources and a history of discrimination complaints may face higher settlements, particularly if punitive damages are warranted.
• Your State's Laws: State laws vary considerably in their protections and damage caps. For example, California has different statutory limits than Texas, which can significantly affect your potential recovery.
• The Quality of Your Legal Representation: An experienced employment discrimination attorney who knows how to negotiate effectively and present compelling evidence can substantially increase your settlement value.

What Types of Damages Can You Recover in a Discrimination Lawsuit?

Here are some of the common types of damages you may seek in a workplace discrimination case:

Back Pay

The term "back pay" refers to lost earnings as a result of the discrimination, from the date of the discriminatory act to the date of the settlement or judgment in the plaintiff's favor. This includes not just base salary, but also bonuses, raises, and other compensation you would have earned. Keep in mind that California requires plaintiffs to make reasonable efforts to find new work, any income earned during that period will be deducted from the total back pay award.

Back pay example: If an employee earned $70,000 per year and were out of work for 2 years due to wrongful termination, their back pay claim could start at $140,000.

Front Pay

This refers to lost earnings as a result of the discrimination. Front pay essentially compensates you for wages you will likely lose in the future as a result of the act of discrimination. The end date for the front pay depends on how long you continue to lose pay. 

Front pay example: An example of front pay would beif a victim is able to show evidence that they won't be able to find another job for six months or a year, then they could be awarded front pay for that duration. A plaintiff can prove this by bringing forth an expert to testify at the trial.

Lost Benefits

As part of a workplace discrimination lawsuit, you may also be able to recover damages for lost job benefits. Lost benefits are often more valuable than people realize, and California courts take them seriously.

Lost benefits examples can include health care coverage, dental and vision coverage, pension or 401k plans, stock options and other types of profit-sharing plans. While it can be challenging to quantify the value of lost benefits in dollars, your employment lawyer will be able to do so with the help of a qualified expert.

Attorney's Fees

In addition to the damages you may be able to recover for your losses, you may also be able to ask for and get attorneys' fees. This means that the defendant will have to pay the amount you spent in attorneys' fees. This also means that the fees won't cut into your monetary recovery. A majority of plaintiffs' attorneys work on a contingent fee basis, which means they take a percentage of what they recover for you as their fees.

Attorney's fees example: If your attorney spent 200 hours on your case at $400 per hour, your employer might be ordered to pay the resulting $80,000 in fees separately from whatever compensation you were awarded.

Punitive Damages - California vs Federal Limits

Punitive damages are intended to punish or deter defendants from engaging in especially egregious conduct. The amount of such damages is entirely up to the jury. Under federal law enforced by the EEOC, the limits on compensatory and punitive damages combined depend on employer size.  While federal law places caps on damages in discrimination cases, California is more generous to plaintiffs. Under Title VII, both compensatory and punitive damages are capped based on employer size, ranging from $50,000 for smaller employers up to $300,000 for those with over 500 employees.

California's Fair Employment and Housing Act (FEHA), on the other hand, imposes no statutory caps on either compensatory or punitive damages, which is one reason why California discrimination settlements tend to run significantly higher than federal claims. That said, punitive damages are not simply handed out, you must prove by clear and convincing evidence that your employer acted with malice, oppression, or fraud, and even then, the U.S. Supreme Court's constitutional guidelines keep awards in check by requiring them to be proportionate to the actual harm you suffered.

Key things to know about punitive damages in a California discrimination case:

• Federal caps by employer size: $50,000 (15 - 100 employees), $100,000 (101 - 200), $200,000 (201 - 500), and $300,000 (500+), these limits apply to combined compensatory and punitive damages under Title VII
• No FEHA caps: State law claims under FEHA are not subject to these federal limits, opening the door to significantly higher awards
• High burden of proof: To qualify for punitive damages, you must show clear and convincing evidence of malice, oppression, or fraud, a stricter standard than general negligence
• You cannot name a dollar amount: California Civil Code Section 3295(e) prohibits plaintiffs from requesting a specific punitive damages figure; the judge or jury decides the amount
• The 9:1 ratio guideline: The U.S. Supreme Court in State Farm v. Campbell suggested that punitive damages generally should not exceed nine times the amount of compensatory damages awarded
• Three-part proportionality test: Courts also evaluate the reprehensibility of the employer's conduct, the ratio of punitive to actual damages, and how the award compares to civil penalties in similar cases
• Government employers are exempt: You cannot seek punitive damages against a public entity employer such as a city, county, or state agency, which are immune under California Government Code Section 825

Punitive damages example under Federal EEOC Law: Take small businesses with fewer than 100 employees, they're looking at a maximum payout of $50,000. But scale up to 101-200 employees, and that number jumps to $100,000. The more employees, the bigger the potential damages: $200,000 for 201-500 employees and a whopping $300,000 for corporations with over 500 employees.

Punitive damages example under California Law: Unlike federal law, California does not cap punitive damages based on how many employees a company has. Instead, the size of your employer matters in a different way, the bigger and wealthier the company, the larger a punitive award needs to be to actually serve as a punishment and a deterrent. If a jury awards you $100,000 in compensatory damages, a punitive award in the range of $500,000 to $900,000 could hold up.

Emotional Distress Damages

When it comes to discrimination in the workplace, in addition to monetary losses, victims could suffer a significant amount of emotional distress as well. Emotional distress could cover a range of issues in the context of a workplace discrimination lawsuit including but not limited to depression, anxiety, inability to sleep, loss of life's enjoyment, harm to one's reputation and strained relationships with family members and friends.

In order to receive damages for pain and suffering, plaintiffs must prove that their employer's discriminatory behavior caused the emotional harm they suffered. Some of the important issues to consider when you are trying to evaluate the extent of emotional distress damages in a discrimination lawsuit include:

• The severity of the discriminatory behavior.
• The time period for which the discriminatory behavior lasted.
• The severity and duration of the emotional harm.
• If the plaintiff sought counseling or professional treatment from a psychiatrist, psychologist, counselor or some other professional.

Proving Emotional Distress

If you are seeking compensatory damages for emotional distress in a workplace discrimination case, you need to provide evidence that you did in fact suffer emotional distress.

How to Prove Emotional Distress

• Provide medical evidence or testimony from a mental health professional (optional but helpful).
• Keep a journal detailing your experiences and feelings.
• Save emails, texts, or memos showing the impact on your well-being.
• Ask friends, family, or co-workers for statements supporting your emotional harm.

Proving emotional distress can be challenging and complex. It is important to preserve any type of evidence that shows the extent of emotional harm that was caused and consult with an experienced Los Angeles workplace discrimination lawyer who can help you navigate what can be a lengthy process and assist you with compiling crucial evidence that could help bolster your case and maximize your chances to receive fair compensation for your losses.

Emotional distress example: If an employer repeatedly passed an employee over for promotions because of their race and they subsequently sought treatment from a therapist for anxiety and depression, the therapist's testimony connecting mental health struggles to that discriminatory treatment could support a significant emotional distress award under California's FEHA.

Settlement Examples by Case Type

While every discrimination case is unique, examining settlement ranges for specific types of discrimination provides helpful context for what you might expect. The value of your case depends on your particular circumstances, but these examples illustrate how different discrimination claims typically resolve.

• Age Discrimination Settlements: Age discrimination cases are covered under the Age Discrimination in Employment Act (ADEA) and often involve employees over 40 who were passed over for promotion, laid off in favor of younger workers, or subjected to age-related harassment. Settlement amounts vary widely based on lost wages, the strength of evidence, and case-specific factors. For instance, a 55-year-old manager terminated and replaced by someone half their age, with emails referencing "new blood," might negotiate a substantial settlement depending on their salary and documentation. Under the ADEA, liquidated damages can equal back pay in cases of willful violations.
• Retaliation Claim Settlements: Retaliation occurs when an employer punishes an employee for filing a discrimination complaint, participating in an investigation, or engaging in other protected activity under Title VII and other civil rights laws. These claims are particularly common and can significantly increase your case's overall value. Settlement amounts depend on the severity of the retaliatory actions and whether they're well-documented. A case where an employee filed an EEOC complaint and was then demoted, given poor performance reviews, and eventually terminated often results in meaningful compensation.
• Race, Gender, or Disability Discrimination Settlements: Race discrimination cases under Title VII often involve unequal treatment in hiring, promotion, discipline, or termination based on an employee's race or ethnicity. Settlement values depend on the severity and duration of discrimination. Gender discrimination, including cases involving pregnancy discrimination or unequal pay under the Equal Pay Act, varies in settlement amounts based on wage disparities and harm suffered. Disability discrimination cases under the Americans with Disabilities Act (ADA) arise when employers fail to provide reasonable accommodations or terminate employees due to their disabilities. These cases often involve substantial damages when employers refuse to engage in the interactive accommodation process.
• Other Forms of Discrimination: The same principles of calculating damages apply to other forms of illegal discrimination protected under federal law, including discrimination based on religion, national origin, pregnancy, or medical conditions. Whether you're facing discrimination in employment, housing, or other contexts, federal and state laws provide remedies, and you can pursue compensation through administrative processes or lawsuits.

Understanding the EEOC Process and How It Affects Your Payout

The Equal Employment Opportunity Commission (EEOC) enforces federal laws prohibiting employment discrimination, including Title VII, the ADA, the ADEA, and the Equal Pay Act. The EEOC process plays a crucial role in most employment discrimination cases and directly impacts your potential compensation. However, for California employees, the state's own agency, the California Civil Rights Department (CRD), is often the more powerful avenue, offering broader protections and no caps on damages. In many cases, filing with one agency automatically cross-files with the other.

• What is an EEOC Complaint? An EEOC complaint, formally called a charge of discrimination, is a sworn statement alleging that an employer engaged in discrimination based on protected characteristics like race, gender, age, disability, or religion. Filing an EEOC charge is typically required before you can file a lawsuit in federal court for discrimination claims covered by federal laws, with exceptions such as the Equal Pay Act which allows direct filing. You generally must file an EEOC charge within 180 days of the discriminatory act, or 300 days if a state or local agency enforces a similar anti-discrimination law. One important distinction for California workers: federal laws like Title VII only apply to employers with 15 or more employees, while California's FEHA covers employers with as few as 5 employees
• How Serious is an EEOC Complaint? For employers, EEOC complaints are very serious matters. An EEOC charge triggers a formal investigation into the employer's practices, requires the employer to respond with detailed information and documentation, and creates potential legal and financial liability. Employers often engage legal counsel immediately upon receiving notice of an EEOC complaint because these charges can lead to costly litigation, damage to reputation, and potential pattern-or-practice investigations affecting their entire workforce. A CRD complaint carries similar weight for California employers and can result in investigations that expose company-wide discriminatory practices beyond your individual case.
• EEOC Mediation & Conciliation Settlement Amounts: The EEOC offers voluntary mediation as an alternative dispute resolution method, typically occurring early in the process and often resolving cases relatively quickly. Some reported average mediation outcomes fall in the low-to-mid-$20,000 range in recent years, though settlement amounts depend entirely on case facts. If mediation fails, the EEOC may investigate and attempt conciliation. These settlements are generally faster than litigation but outcomes vary significantly based on the strength of your case and provable damages.
• From EEOC to Lawsuit: If the EEOC does not resolve your case through mediation or conciliation, it issues a Notice of Right to Sue, which allows you to file a lawsuit in federal or state court. After the EEOC issues a Right to Sue letter, you typically have 90 days to file a federal lawsuit. Cases that proceed to litigation generally have higher potential payouts because they allow for more comprehensive discovery, the possibility of trial, and often motivate employers to offer more substantial settlements. For California employees pursuing a state claim through the CRD, the process is similar, once the CRD issues a Right-to-Sue notice, you have one year to file a civil lawsuit in California court. 

Timeline of a Discrimination Lawsuit

Understanding how long a discrimination case takes can help you set realistic expectations. While every case is different, most California discrimination cases follow this general path, and can take anywhere from several months to several years to fully resolve.

1. Initial Consultation: The process begins with a free consultation with an employment discrimination attorney who will evaluate the strength of your claim, identify which laws apply to your situation, and advise you on the best path forward. This is also the stage where you should gather any documentation you have, including emails, performance reviews, and records of the discriminatory conduct.
2. Filing with the CRD and/or EEOC: Before filing a lawsuit in court, California employees must first file an administrative complaint with the California Civil Rights Department (CRD) and/or the EEOC. Under FEHA, you have three years from the date of the discriminatory act to file with the CRD. If you file with one agency, it is often automatically cross-filed with the other. At this stage, you can request an immediate Right-to-Sue notice or allow the agency to investigate.
3. Investigation: Once a complaint is filed, the CRD or EEOC will investigate the claim, which may include requesting documentation from your employer, interviewing witnesses, and reviewing company policies. This process can take several months. During this time, the agency may also offer mediation as a way to resolve the dispute without proceeding further.
4. Discovery (Evidence Exchange): If the case proceeds to litigation, both sides enter the discovery phase, during which each party exchanges evidence, takes depositions, and gathers expert testimony. This is often one of the most time-consuming stages, typically lasting six months to over a year in complex cases. Strong evidence uncovered during discovery frequently motivates employers to increase their settlement offers.
5. Mediation and Settlement Negotiations: The majority of discrimination cases resolve before trial through negotiated settlements. Mediation involves a neutral third party who helps both sides reach a mutually acceptable resolution. This stage can occur at any point in the process, many cases settle during or shortly after discovery once the strength of the evidence becomes clear to both sides.
6. Trial (if necessary): If a settlement cannot be reached, the case proceeds to trial where a judge or jury will determine the outcome. While trials represent a small percentage of discrimination cases, those that do go to trial in California tend to result in significantly higher awards. California juries have become increasingly willing to deliver substantial verdicts in employment discrimination cases, which is one reason employers often prefer to settle.

Consulting With An Experienced Attorney

Speaking with a knowledgeable Los Angeles employment discrimination attorney can be critical when it comes to making decisions that are in your best interest. Too many employees research online and take action that makes their situation even worse. The attorneys at Kingsley Szamet Employment Lawyers are here to help. They provide free consultations that will answer your questions and give you the information you need to make a decision about what you should do next.

Our skilled employment lawyers in Los Angeles, CA have four decades of experience fighting for the rights of employees and holding at-fault employers accountable. As an experienced law firm they can help you understand what to ask for in a discrimination settlement. Their no-win-no-fee warranty ensures that you pay only if they recover compensation for you. They understand that facing any type of discrimination can take a physical, emotional and financial toll on you and your family. If you have faced workplace discrimination and would like some help, call their office at (818) 990-8300 for a free, comprehensive and confidential consultation.

Largest Discrimination Settlements

Some of the largest discrimination settlements that have been reached include the following:

• Black Farmers Discrimination Lawsuit: A $1.25 billion settlement was reached in a discrimination case on behalf of 33,000 Black farmers.
• Southern California Edison: A jury awarded $464.5 million in damages to two plaintiffs in a case involving sexual and racial harassment and retaliation.
• Countrywide Financial: The Department of Justice reached a $335 million settlement to resolve allegations of lending discrimination.
• Disney: A $43.25 million class-action settlement was approved in a gender pay discrimination lawsuit alleging that women were paid less than their male counterparts. 

It's important to note that every discrimination case involves distinct circumstances, and these settlement amounts should not be interpreted as predictive of outcomes in other cases.

What Are The Odds Of Winning A Discrimination Case?

Your chances of winning a discrimination case are much higher if you have the evidence and documentation to support your claim of discrimination. Such evidence could be direct or circumstantial. Our Los Angeles discrimination lawyers strongly recommend that clients document incidents of discrimination or harassment as they occur. It would be in your best interest to keep a log or journal of specific acts or statements made by your supervisor, colleague or even client or customer, which are discriminatory in nature or that constitute being sexually harassed.  We have a full guide on am I being sexually harassed at work for those who might need additional information.

While building your claim, it is imperative that you save any emails, memos or written correspondence that shows such discrimination. You must do so in a location where you can readily access it. This means, it is not a good idea to store your evidence in an office computer. Keep it in your personal computer at home where you can readily access it when needed. Once you file a complaint, our attorneys will help compile and present the evidence. Our employment lawyers may also be able to obtain your personnel files and other key evidence that will help significantly strengthen your claim and significantly improve your chances of winning.

How Much Should I Ask For In A Discrimination Case?

There are a number of factors that could have an impact on how much compensation you can seek in a discrimination case. Here are some of those factors:

• The strength of your evidence
• The nature and extent of damages you suffered as a direct result of the discrimination
• How outrageous was your employer's discriminatory conduct?
• Did your employer have a history or track record of discriminatory behavior or allowing such conduct to take place?
• Does your employer have sufficient resources to pay a judgment?
• If your employer has an insurance policy to cover these types of claims, how much are those policies worth?

It can be challenging to predict what your discrimination case may be worth. A majority of these cases get settled out of court, but some do go to trial. Depending on the facts and circumstances of the case, settlements or verdicts can climb to seven figures. An experienced Los Angeles workplace discrimination lawyer can help analyze all aspects of your case and determine the value of your claim.

Getting Help From a Top Los Angeles Discrimination Attorney

Hiring an experienced employment discrimination attorney in your area significantly increases your chances of obtaining fair compensation.  Contact our experienced Los Angeles employment discrimination attorneys for a free, confidential case evaluation. We'll review your situation, explain your legal options, and help you understand what compensation you may be entitled to receive. Call us today to take the first step toward justice and fair compensation for the discrimination you've experienced.

Frequently Asked Questions

How long do I have to file a discrimination claim in California?

In California, you generally have three years from the date of the discriminatory act to file a complaint with the California Civil Rights Department (CRD), the agency formerly known as the Department of Fair Employment and Housing (DFEH). This three-year deadline was established by Assembly Bill 9, which took effect on January 1, 2020, and tripled the previous one-year window specifically to give victims more time to process their experiences and seek legal help. Once the CRD issues you a Right-to-Sue notice, you then have one year from that date to file a civil lawsuit in court. For federal discrimination claims filed with the EEOC, the deadline is shorter, 180 days from the discriminatory act, extended to 300 days in California because the state has its own fair employment agency. After receiving a federal Right-to-Sue letter from the EEOC, you have just 90 days to file in federal court. Because these deadlines are strict and missing them can permanently bar your claim, it is important to speak with an attorney as soon as possible after experiencing discrimination.

Can I be fired for suing my employer?

No, California law prohibits employers from retaliating against employees for filing discrimination, harassment, or other workplace-related lawsuits. However, employers can still terminate employees for legitimate business reasons unrelated to the lawsuit, so it's important to document any potential retaliatory behavior and consult with an employment attorney if you believe retaliation has occurred.

What evidence do I need to prove my case?

You'll need evidence that demonstrates both the discriminatory treatment occurred and that it was based on a protected characteristic like race, gender, age, or disability. This can include documentation such as emails, performance reviews, witness statements, records of complaints made to HR, patterns of different treatment compared to similarly situated employees, and any direct evidence of discriminatory comments or behavior by supervisors or coworkers.

Can you sue for discrimination?

Yes, you can sue for discrimination in employment, housing, or public accommodations based on protected characteristics like race, gender, age, religion, or disability. However, for workplace discrimination, you typically must first file a complaint with the EEOC or state agency before pursuing a lawsuit in court.

What can you ask for in an EEOC settlement?

In an EEOC settlement, you can request monetary damages including back pay, front pay, emotional distress compensation, and punitive damages, as well as non-monetary relief such as job reinstatement, policy changes, training programs, and written references. Settlement agreements may also include provisions for ongoing monitoring of the employer's compliance with anti-discrimination laws.

How long do discrimination settlements take?

Discrimination settlements typically take anywhere from several months to several years, depending on the complexity of the case and whether it's resolved through agency mediation, private negotiation, or litigation.

Is it worth filing a discrimination lawsuit?

Filing a discrimination lawsuit is worth considering if you've experienced illegal discrimination that caused significant harm, you have evidence to support your claims, and the potential compensation justifies the time and emotional investment required. An attorney can help you evaluate whether pursuing legal action makes sense for your situation.