Wrongful Termination Settlement – Understanding the Fundamental Aspects of Securing Maximum Payments

Wrongful termination occurs when employers violate federal and state employment laws while dismissing an employee based on workplace discrimination, religion, disability, gender, race, sexual orientation, etc. If you believe you have been wrongfully dismissed, you can take legal steps and file for compensation from the employer. However, you must gather compelling evidence and data points like witness statements, work schedules, financial documents, pay stubs, and personal testimony to support your claim and build a strong lawsuit. 

What is Wrongful Dismissal Settlement?

A wrongful dismissal or termination settlement is the amount employees receive from their employers for being unlawfully fired from their job roles. Both employees and employers benefit from a settlement amount because employees receive a particular kind of relief from financial compensation. In contrast, the employer avoids the uncertainty and embarrassment of long trials. 

What Damages are Covered in Settlements?

Wrongful termination can create mental distress and anxiety and result in a wide range of losses, including: 

• Non-wage benefits include health insurance, stock options, and a pension. 
• Emotional distress and professional reputational harm
• Attorney’s fees for filing a lawsuit and court costs
• Out-of-pocket expenses, like expenses during a job search 
• Loss of wages from the date of termination to the date of settlement
• Difference in wages between the former and the new job role.
• Reinstatement of employment
• Liquidated damages to compensate for your education expenses

A wrongful discharge settlement may also include compensation for punitive damages, especially when subjected to intentional discrimination and harassment. The settlement for punitive damages often goes beyond monetary payments. They are awarded to punish the employer for misconduct and increase compensation for the victim. 

Calculating the Termination Settlement Value

Under California employment law, the correct settlement value for a wrongful discharge case depends on many factors. 

• Your earnings – wages, benefits, bonus, and increment
• Your position, title, and job-specific responsibilities 
• Your work hours, monthly, daily, or weekly salary 
• Your age, performance, and prospects for continued employment 
• Expenses you have incurred since losing your job 
• Your loss of reputation
• Strength of evidence presented 
• Reputation of the employer

Additionally, California law requires you to make a reasonable effort to find new opportunities soon after discharge. Failing to do so can affect the compensation amount. 

You may wonder about the average settlement range. According to the  Equal Employment Opportunity Commission (EEOC) data, the average out-of-court compensation ranges between $5,000 and $80,000. The verdict amount can exceed $1 million or more, particularly for wrongful termination cases when:

• The termination is based on discrimination of sex, race, or disability. 
• The employer caused physical harm, sexual harassment, or mental distress to the employee.
• A lawsuit has been filed, and the employee has begun gathering evidence
• The employee refuses the first settlement 
• The firm is larger.

Tips to Maximize Your Recovery in a Wrongful Dismissal Settlement

Many former employers and employees choose out-of-court settlements, as litigation is expensive, time-consuming, and exhausting. While mutual settlements may not get you the maximum compensation, they save you from the stress of an ongoing legal battle. Also, follow these tips to recover the maximum amount of compensation.