One of the most frequently asked questions I receive after "do I have a case?" is "how much is my case worth?" While every case is different and there is no magic formula, the following are important considerations that factor into the settlement value of an employment discrimination case:
Evidence that supports your ability to prove your case. Outside of written or recorded acts of discrimination, most cases rely heavily on circumstantial evidence. For example, the temporal proximity between a discriminatory act and an adverse employment action tends to support allegations of discrimination without direct evidence. The more evidence you can produce such as documents, recordings, emails, and/or witness testimony, the more leverage you have in negotiating a higher settlement.
Severity of discrimination. Many claimants are surprised to learn that offensive or insensitive comments alone do not automatically create a claim of discrimination or hostile work environment. The conduct complained of must be "so objectively offensive as to alter the 'conditions' of the victim's employment" to be actionable. See Yelling v. St. Vincent's Health Sys., 82 F.4th 1329. The severity of the conduct complained of has a significant impact on what the case may settle for. Instances of severe, intentional and malicious discrimination and scenarios where plaintiffs experience a hostile work environment for prolonged periods of time tend to settle for higher amounts.
Demonstrable Damages. Case value depends on the damages you can prove, such as lost wages and benefits, and emotional distress. The length of time it takes to find subsequent employment and the documented effects of emotional distress are considerations that can increase the amount a case settles for.
Employer Size. Federal laws protect employees from discrimination who work for employers with at least 15 employees or more. The size of a company plays a role in the amount a case may settle for and at what stage. A smaller company may find early settlement financially beneficial when assessing their risk exposure with litigation costs. A larger company typically has more resources, which can sometimes result in a higher settlement, but they often also have more lawyers, which can result in prolonged litigation that results in severe stress and financial hardship to the plaintiff.
Potential for reputational damage. Depending on the defendant, the risk for negative exposure may increase the amount they are willing to settle for to avoid the public nature of a lawsuit. Similarly, keeping bad facts from getting in front of a jury can also factor into case value during negotiations.
As mentioned above, every case is different and there are many factors that determine the settlement value of an employment discrimination case. Ultimately, both parties weigh the benefits of early resolution against the risks and costs of proceeding to trial. An experienced employment attorney will work hard to ensure that you receive the best possible outcome based on the facts of your case.
If you believe you have been the victim of discrimination in the workplace, contact J. Hughes Law, LLC for a free case review.