If you have experienced workplace discrimination, you might be considering a settlement to resolve your case. Knowing what to ask for in a discrimination settlement is crucial to ensure you receive fair compensation. If you’ve been treated unfairly at work because of your race, gender, age, disability, religion, pregnancy, or another protected characteristic, you may have the right to pursue a legal claim under federal, state, and city laws. Many discrimination cases end in a settlement, where the employer agrees to provide compensation or make changes without the cost and uncertainty of going to trial.
Knowing What to Ask For Matters
A strong outcome doesn’t happen by accident. It requires knowing what to ask for in a discrimination settlement and how to support those requests with solid evidence. You can ask for back pay, front pay, lost benefits, emotional distress damages, attorney’s fees, and sometimes punitive damages. Non-financial remedies may also be available, such as policy changes, job reinstatement, or a neutral job reference. Understanding these options, and how they apply to your case, will help you build a settlement demand that protects both your financial stability and your future career.
Financial Compensation You Can Request: Recovering Your Losses
The core of most settlements is the financial component, designed to compensate you for tangible and intangible losses.
Lost Wages and Benefits
Lost wages are often the largest part of a discrimination settlement. You can request:
- Back Pay: This covers the wages, bonuses, and overtime you should have earned from the date of the discrimination until the date of the settlement. For example, if you were wrongfully terminated from a job paying $80,000 per year and were unemployed for two years before starting new employment at the same pay, your back pay demand could be $160,000.
- Front Pay: This is compensation for future lost wages if you cannot be reinstated to your job or if it will take time to find a comparable position due to the damage to your career. It covers the projected period of unemployment or reduced earnings going forward.
- Lost Benefits: This includes the full value of benefits like health insurance, retirement contributions (e.g., 401(k) matching), bonuses, or stock options you missed out on. If you had to pay for COBRA or private health insurance after a wrongful termination, those costs can be included.
Emotional Distress and Mental Anguish
Workplace discrimination often causes serious emotional harm. You can ask for compensation for stress, anxiety, depression, insomnia, humiliation, or other psychological effects. The amount depends on the severity and duration of the discrimination, and having medical records from a doctor or therapist strengthens this part of your claim.
While emotional distress awards vary widely, moderate awards without medical documentation or therapy records often range from $30,000 to $150,000, whereas awards supported by medical evidence can exceed $150,000.
Attorney’s Fees and Legal Costs
If you hired an attorney to handle your case, you can recover the amount of their fees along with court costs, filing fees, and expenses for expert witnesses. This “fee-shifting” provision in many civil rights laws ensures you are not paying out-of-pocket for the cost of protecting your rights.
Punitive Damages
Punitive damages are designed to punish the employer for especially malicious or reckless conduct and deter future violations. These are not awarded in every case, but when available, they can significantly increase the value of your settlement. An example justifying punitive damages is when an employer knew about severe harassment, ignored repeated reports of discrimination, and then fired or retaliated against the employee for speaking up.
Non-Financial Settlement Terms to Consider
Not every valuable settlement term involves money. These “non-monetary” remedies can provide crucial protection for your career and help ensure no one else suffers the same harm. Some employees ask for:
- Job Reinstatement: This allows you to return to your previous position with the same pay, seniority, and benefits.
- Policy Changes & Training: You can demand changes to company policies and mandatory anti-discrimination training for staff and managers.
- A Neutral Reference: This is a critical term to protect your reputation. It ensures the employer agrees to provide only your dates of employment and position held to prospective employers, preventing them from bad-mouthing you in the job market.
- Confidentiality and Non-Disparagement: These clauses are common. A non-disparagement clause prevents both you and the employer from speaking negatively about each other. A confidentiality clause keeps the terms of the settlement private.
It is important to ensure these clauses are mutual and do not unfairly restrict you.
Taking Control: How to Build a Strong Case and Maximize Your Settlement
Gather Strong Evidence
Evidence is the foundation of any successful settlement negotiation. The more compelling your proof, the stronger your leverage.
- Document Everything: Save emails, text messages, Slack/Teams messages, and any other written documents that show discriminatory behavior.
- Keep a Journal: Write down every incident of discrimination, including the date, time, location, what was said or done, and who was present.
- Identify Witnesses: Collect names and contact information for coworkers who saw or heard what happened and are willing to provide a statement.
- Collect Performance Records: Keep copies of performance reviews, awards, and positive feedback from before and after the discrimination began to show a change in treatment.
- Maintain Medical Records: If you are seeking emotional distress damages, maintain records from therapists or doctors.
Be Clear About Your Priorities
Before you start settlement discussions, decide which demands are most important to you. Some employees prioritize financial compensation, while others want policy changes or job reinstatement. Knowing your goals helps you and your attorney stay focused and prevents you from agreeing to a settlement that doesn’t meet your needs.
Prepare to Negotiate
Employers and their attorneys will often push back on settlement demands. Be ready to explain why each item you’re requesting is reasonable and supported by evidence. It’s common to compromise on some terms while holding firm on others. Understanding your employer’s motivations can provide you with significant leverage.
Work with an Experienced Employment Lawyer
Negotiating a settlement can be complex and stressful. An employment lawyer can help you calculate the full value of your claim, prepare a strong settlement demand letter, and negotiate effectively on your behalf. They can also make sure the final agreement protects your long-term interests and closes any loopholes that could hurt you later.
The Bottom Line
Knowing what to ask for in a discrimination settlement puts you in the best position to recover from the harm you’ve experienced and secure your financial future. From lost wages and emotional distress damages to non-financial remedies like a neutral reference and policy changes, each demand should be tailored to your specific situation and backed by strong evidence. By understanding the value of your claim, and working with a skilled employment attorney, you can secure a settlement that provides both fair compensation and meaningful changes in the workplace.
You do not have to navigate this process alone. If you believe you have been treated unlawfully at work, the first step is understanding the full value of your claim. Contact Rissmiller PLLC for a free, confidential consultation. We can review your case, explain your options, and fight for the settlement you deserve.