What to Ask for in a Discrimination Settlement

Civil rights laws developed throughout the late 20th century have significantly transformed American society. Discriminatory practices, once common, are now broadly condemned, empowering victims to initiate lawsuits against employers. Congress facilitated this shift by allowing private enforcement of civil rights, which included seeking compensation for discrimination.

Many of these cases settle before they ever reach trial. However, the key to settling a discrimination case effectively hinges on understanding its value. With this knowledge, you and your attorney can negotiate a settlement that fairly resolves your claim.

Discrimination Settlements and What You Can Ask For

Federal and state civil rights laws forbid differential treatment of workers based on protected characteristics.  These include:

• Race
• Color
• Religion
• National Origin
• Genetic Information
• Sex
• Age
• Disability

Discriminatory practices can manifest in various employment aspects, including hiring, pay, promotions, layoffs, training, fringe benefits, and job assignments.  Additionally, claims may address a “hostile work environment,” defined by ongoing severe conduct that significantly disrupts an employee’s job performance.  Single incidents or sporadic comments typically do not constitute a hostile environment.

Lawsuits begin with a complaint that describes the basis of your claim and the relief you seek. As your lawsuit proceeds, your lawyer will have many conversations with the other side about settling the case. When settling, you aim to reach an agreement where both parties make concessions.  Essential components of a discrimination settlement might include:

Monetary Compensation

• Compensatory Damages:  Covers lost wages, out-of-pocket job search costs, and lost benefits.
• Emotional Distress:  Compensation for quality of life deterioration due to discrimination, assessed through personal and witness testimonies.
• Punitive Damages:  Aimed at punishing particularly egregious employer behavior, though rare and typically not part of settlement agreements.

Reinstatement and Employment Benefits

If desired, reinstatement to your former position or an equivalent position might be requested, along with the restoration or compensation of lost benefits. 

Policy Changes and Training

Settlements can include demands for policy adjustments or the implementation of training programs to prevent future discrimination. 

Non-Disclosure and Non-Disparagement Agreements

Non-Disclosure and Non-Disparagement Agreements can maintain public civility by preventing both parties from disclosing settlement terms or speaking negatively about each other, though they can be challenging to enforce. 

Legal Fees and Costs

The default rule in American litigation is that each party bears responsibility for their legal fees. Civil rights laws may allow recovery of court costs and attorney fees, which can be included in the settlement to preserve more of your compensation.

Neutral References

Settlement agreements can provide that your former employer will provide a prospective employer with a neutral reference, which typically only includes your dates of employment and position(s) held.

Negotiating Your Discrimination Settlement

Understanding the law and knowing your leverage is crucial. Discuss potential motivations for your employer to settle, such as minimizing negative publicity or avoiding lengthy legal proceedings. An experienced attorney will set realistic expectations with you about the possible outcomes based on the strength of your claims and available evidence.

Seeking Legal Experience in Discrimination Settlements

It’s possible to continue to experience the effects of workplace discrimination for years after the events that led to your lawsuit. Knowing what to ask for in a discrimination settlement can go a long way toward making up for the discrimination. However, addressing these effects often takes more than just money.

Wenzel Fenton Cabassa has the legal knowledge to assess the value of your case and the experience to craft a creative and fair settlement that meets your needs. Our Florida employment discrimination lawyers have represented thousands of clients and handled hundreds of trials. 

Through these cases, we have recovered over $100 million for our clients. Contact us to seek professional advice when negotiating a discrimination settlement.