There is no reliable “average settlement” that determines the value of an employment-termination claim. The value depends on the legal claims, evidence, economic losses, available remedies, litigation risk, and the practical incentives of both sides. No attorney can guarantee an outcome.
Factors That Affect Case Value
- The strength of the underlying discrimination, retaliation, leave, contract, or other claim.
- Past lost wages, benefits, commissions, bonuses, equity, and other compensation.
- The likely duration of unemployment and any claim for future lost earnings.
- Mitigation efforts and replacement income.
- Emotional-distress evidence and the damages available under the particular statute.
- Whether punitive or liquidated damages are legally available.
- The employee's tenure, performance history, and separation circumstances.
- Any severance already offered or paid.
- Whether the employer departed from its own policies or gave inconsistent explanations.
- Employer size, applicable statutory damage caps, insurance, publicity concerns, and tolerance for litigation risk.
- The expected cost, duration, and burden of discovery, motion practice, and trial.
Settlement Versus Litigation
Most employment disputes resolve without a trial, and many resolve before a lawsuit is filed. Pre-suit resolution can avoid substantial cost and delay, but an employer may place a different value on a claim after formal discovery, depositions, or dispositive-motion rulings. Greater litigation investment can increase leverage in some cases while also increasing cost and risk for both sides.
Large Verdicts Do Not Tell the Whole Story
Reported jury verdicts can be misleading as valuation tools. Awards may be reduced by statutory caps, altered by post-trial motions, reversed or modified on appeal, or resolved for different amounts to eliminate appellate risk. The facts and remedies available in one case may be very different from another.
Alternatives to Full Litigation
Depending on the matter, counsel may pursue severance negotiations, a pre-suit demand, EEOC mediation, private mediation, administrative proceedings, or other resolution strategies before committing to years of litigation.
Fidlon Legal evaluates both the potential value and the downside risk of an employment claim so the client can make an informed decision about settlement and litigation.