Average EEOC Lawsuit Payout Amounts for Californians
Legally reviewed by: Jessica Anvar Stotz, JD, MBA
The average EEOC settlement amount typically ranges from approximately $40,000 to $45,000 for Californians. Cases that go to trial can generally receive rewards of approximately $200,000 to $700,000.
Only about 1-2% of EEOC cases make it to trial, so this settlement range represents a small subset.
Limits On Compensatory & Punitive Damages
According to the EEOC, there are limits on the amount of compensatory and punitive damages a person can recover. This often affects the final settlement amount of anyone pursuing a claim through the EEOC.
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.
For employers with 201-500 employees, the limit is $200,000.
For employers with more than 500 employees, the limit is $300,000.
However, these caps don’t apply to back pay awards or certain state law claims, which is why some verdicts can be much higher.
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Factors Affecting EEOC Settlement Amounts
Primary Discrimination Type
The nature of discrimination significantly impacts settlement amounts.
- Sexual harassment and disability discrimination cases typically yield higher settlements than other types.
- Age discrimination cases often result in larger settlements due to wage loss calculations for senior employees.
- Race discrimination cases can see higher settlements when there’s clear evidence or patterns of systematic discrimination.
Evidence Strength
The quality and quantity of evidence heavily influences settlement value. Cases with the following tend to receive higher settlements:
- Direct evidence like emails or recordings showing discrimination
- Multiple credible witnesses
- Clear documentation of complaints and employer inaction
- Statistical evidence showing patterns of discrimination
- Proof of retaliatory actions after complaints
Employer Size and Resources
Larger employers typically pay higher settlements due to:
- Greater financial resources
- Higher statutory damage caps
- More sophisticated HR processes that should have prevented discrimination
- Greater potential for punitive damages
- Multiple locations or departments affected
Economic Damages
Calculable financial losses significantly impact settlement amounts:
- Lost wages and benefits
- Future earning capacity reduction
- Medical expenses (particularly in disability cases)
- Cost of finding new employment
- Training or education needed for new career path
Duration of Discrimination
Longer periods of discriminatory conduct generally lead to higher settlements because:
- More back pay accumulates
- Pattern of behavior becomes clearer
- More witnesses and evidence may emerge
- Greater emotional distress can be demonstrated
Geographic Location
Settlement values vary by region due to:
- Local jury tendencies
- State law differences
- Local economic conditions
- Cost of living variations
- Strength of state employment protections
Publicity Risk
Cases with higher public relations risks often settle for more:
- High-profile employers or individuals involved
- Media attention already received
- Risk of damaging publicity
- Industry-specific reputational concerns
Employee Position and Salary
The employee’s role affects settlement value:
- Higher-paid positions usually result in larger settlements
- Executive-level cases often settle higher due to complexity
- Commission-based employees may have more complex damage calculations
- Specialized skills affecting re-employment prospects
Multiple Affected Employees
Cases involving multiple employees typically see higher settlements:
- Class action potential
- Pattern and practice evidence
- Systemic discrimination claims
- Greater organizational impact
Emotional Impact and Personal Circumstances
Non-economic factors can influence settlement amounts:
- Severity of emotional distress
- Impact on mental health
- Effect on family relationships
- Physical manifestations of stress
- Career impact and future prospects
Legal Representation
The quality and experience of legal representation affects outcomes:
- Attorney’s track record in similar cases
- Resources available for litigation
- Negotiation experience
- Ability to properly value claims
Do You Have to File a Claim Through the EEOC to Get a Settlement?
People have multiple routes available for pursuing discrimination claims – filing with the EEOC is just one option. Here are the main paths:
- Direct Legal Action (with a caveat): For most federal discrimination claims, you must first file an EEOC charge and get a “right to sue” letter before filing a federal lawsuit. However, some state and local laws don’t require this step.
- State Agencies: Many states have their own civil rights or fair employment agencies (often called Fair Employment Practice Agencies or FEPAs) that handle discrimination claims. In California, this includes California’s Department of Fair Employment and Housing (DFEH)
- Alternative Dispute Resolution: You can pursue resolution through:
- Private mediation
- Arbitration (if required by an employment agreement)
- Direct negotiation with the employer
- Internal complaint procedures
- Union Grievance Procedures: Union members may be able to address discrimination through their union’s grievance process.
- State Court Actions: Some discrimination claims can be filed directly in state court under state laws, which might offer:
- Higher damage caps than federal law
- Different statutes of limitations
- Additional protected categories
- Different procedural requirements
Important considerations for each route:
- Different deadlines apply (statutes of limitations)
- Different remedies may be available
- Some paths may preclude others
- State laws might provide better protections
- Some routes may be faster than others
It’s usually advisable to consult with an employment lawyer to determine the best strategy, as they can evaluate which route might be most advantageous for your specific situation.
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