As an HR director or business owner, it can be concerning to think about the possibility of a discrimination lawsuit settlement being paid out on behalf of your organization.

While no one likes to think about such a scenario, preparing for the potential risk is key in order to protect your people and resources.

One of the most important considerations during such preparations is understanding what type of settlement might accompany a successful discrimination case against your business—but where do you begin?

As daunting as this question may seem, it’s not impossible to answer.

In this blog post, we take a detailed look at some of the factors that will influence how much money could potentially be sought from (or paid into) a workplace discrimination claim. We’ll also share tips on how employers should prepare for any possible litigation scenarios in order to save time and resources down the line.

The Cost of Defending an Employee’s Lawsuit

Discrimination lawsuits can be costly for employers, as the average discrimination lawsuit settlement could range from $15,000 to over $300,000 depending on the severity and scope of the case.

The specifics of any discrimination case will depend largely on state law, since discrimination laws vary by jurisdiction. The amount of a harassment or discrimination settlement also depends upon the type of discrimination, such as sex discrimination, age discrimination, or disability discrimination.

Planning on hiring a lawyer to defend your discrimination case? Be warned: hiring an attorney can cost employers at least $100,000 in legal fees. The amount may be even higher if the discrimination lawsuit is complicated and requires a lengthy litigation process.

Employers should also be prepared for discrimination cases to take up to two years or more to adjudicate. During this time, employers may face public censure, legal fees, and costly settlements.

Related read: What is the true cost of workplace bullying?

State Laws Affecting Discrimination Lawsuit Settlements

It is important to note that discrimination laws vary by state. For instance, in some states employers must pay an employee’s attorney fees if they lose the discrimination case. Employers should also be aware of their state’s discrimination law threshold.

In many states, discrimination cases must reach a certain level of harm before they can be heard in court.

In California, for example, the discrimination lawsuit settlement is usually capped at a certain amount that is determined by the size of the employer. For example, employers with fewer than five employees can’t be made to pay more than $25,000 in discrimination damages. Employers with 50 or more employees can’t be made to pay more than $200,000 in damages.

Related read: Is yelling in the workplace considered harassment?

Types of Employment Lawsuits

It is important to note that discrimination lawsuits are just one type of employment lawsuit employers may have to face.

Other types of employment lawsuits include:

• Wrongful termination
• Failure to promote
• Retaliation
• Wage and hour disputes
• Sexual harassment and quid pro quo

Wrongful termination cases can be the most expensive for employers as they often require legal fees in addition to the cost of paying out a settlement or court-awarded damages. If a discrimination case is combined with a wrongful termination claim, the total cost can be much higher.

In each of these cases, the average settlement amount can vary greatly, depending on the specifics of the case. Employers should be aware that discrimination and harassment settlements typically cost more than other types of employment lawsuits due to their complexity and severity.

Related read: What are the types of harassment and how to recognize the signs?

The Bottom Line: Discrimination Lawsuits are Costly

Discrimination lawsuits are costly and time consuming for employers to handle. Attorneys fees alone can cost upwards of $100,000 and discrimination cases often last two years or more.

The amount of the discrimination settlement can vary greatly depending on state laws, the type of discrimination and severity of the case, and whether it is combined with a wrongful termination claim.

Discrimination lawsuits are expensive for employers and may carry significant legal fees in addition to costly settlements. The amount of any discrimination lawsuit settlement varies from state to state, depending on discrimination laws, as well as the type of discrimination and severity of the case. Employers should be aware of their state’s discrimination law threshold and may want to take steps to prevent discrimination in their workplace before it escalates into a costly lawsuit.

Businesses and HR directors would be wise to take steps to prevent discrimination in their workplace and create an environment where employees feel safe and respected. Tools like Konsistent can help employers and HR directors create policies, set up discrimination training for their employees and ensure that the workplace is free from discrimination.

With Konsistent, employers can take steps to prevent discrimination before it escalates into a costly lawsuit and protect their business from unnecessary costs.

Download and try Konsistent for free in 3 simple steps >>