A common question we hear from employees who’ve been wrongfully terminated is, What’s the average wrongful termination payout? It’s a natural thing to wonder when you’re considering taking legal action after an unlawful firing. However, the answer is often more complex than employees expect.
Our Los Angeles wrongful termination lawyers will shed light on how settlements work in wrongful termination cases. We’ll discuss the types of compensation available for wrongful termination, California average settlement amounts, and the factors that impact how much employees can recover.
What Legal Compensation Is Available in Wrongful Termination Cases?
California and federal employment law allow employees to recover compensatory damages from an employer who fires them illegally. Damages is the legal term for the losses that employees suffer because of their employer’s wrongdoing. Compensatory damages can be separated into two categories: economic and non-economic.
Economic damages aim to repair the tangible financial losses associated with an unlawful dismissal. These can include compensation for lost income, non-wage benefits (e.g., health insurance, stock options), and job search expenses.
Non-economic damages are designed to help make up for losses that are harder to calculate but still genuine consequences of wrongful termination. These can include:
- Emotional distress,
- Pain and suffering,
- Damage to a professional reputation, and
- Loss of enjoyment of life.
In some wrongful termination cases, punitive damages could also be available. As the name suggests, these damages are designed to punish offenders and discourage others from acting similarly. Under California law, punitive damages are reserved for situations when an employer’s wrongdoing is particularly oppressive, fraudulent, or malicious.
For example, an employer with a history of intentional harassment and discrimination against racial minorities could face punitive damages. However, employment cases that warrant punitive damages are often rare.
What Factors Impact Wrongful Termination Payouts in California?
Employees who bring wrongful termination suits in California are more likely to receive compensation in an out-of-court settlement rather than as the outcome of a trial. Generally, employers prefer to avoid the publicity and expense of a court trial when resolving employment disputes.
This means that your payout will ultimately be determined through the process of negotiation between your and your employer’s lawyers.
Let’s walk through some of the main factors that can impact the amount of your settlement award.
Salary, Benefits, and Skillset
A major goal of legal damages in wrongful termination cases is to compensate you for the assets lost when you were unlawfully fired. As a result, settlements often take into account what you would have earned between your termination and the present. If you can’t be reinstated to your old job, your settlement payout could also include front pay.
This is compensation for the future lost wages and benefits you’d have earned if you’d kept your position. Some factors often used when calculating front pay include your age, work performance, skillset, and plans to stay with your former employer.
Employer Conduct
Your employer’s actions before and after your firing can also impact the amount of your potential settlement. A pattern of targeted harassment, discrimination, or intentional deception could be grounds for a more substantial settlement award. If your employer’s actions hurt your professional reputation and potential job prospects, that could also be considered when compensating you for your losses.
Strength of Evidence
The quality of your evidence can also significantly impact the value of your wrongful termination claim. Having clear and compelling evidence of your employer’s wrongdoing and the harm it had can help support your case for damages. Some types of evidence often valuable in wrongful termination cases can include:
- Emails, letters, and memos exchanged with your employer;
- A termination letter with the official reason for your firing;
- Documentation of formal complaints or reports filed with internal or external authorities;
- Employment contracts and employee handbooks;
- Pay stubs, wage statements, and documents confirming employee benefits;
- Past performance reviews and employee evaluations; and
- Testimony from witnesses who observed patterns of discrimination or retaliation.
Even informal documentation can be helpful in your case. Keeping a journal with a written account of your experience before and after being fired can serve as a potentially useful piece of evidence.
Guidance From an Employment Lawyer
The backing of a legal professional is one of the most influential factors in any wrongful termination settlement. A credentialed lawyer deeply understands California and federal employment laws and how to collect the evidence you need for a compelling claim. The support of an attorney who’s practiced in the type of unlawful dismissal you faced also brings valuable strategic insights and experience to the table. Since settlements are resolved through negotiation outside of court, having a knowledgeable attorney can do a lot to improve your potential outcome.
What Is the Wrongful Termination California Average Settlement Amount?
When it comes to suits for wrongful termination in California, settlements can vary widely. Since numerous factors are involved in determining a settlement amount, estimating a representative average that employees can expect is difficult.
In many cases, California settlements for wrongful termination cases range between $5,000 and $100,000. However, settlements can also reach much higher, even into the millions of dollars.
However, employees should be aware that wrongful termination suits filed through federal channels may not be able to achieve settlements in this range. The U.S. Equal Employment Opportunity Commission (EEOC) puts limits on the compensatory and punitive damages employees can recover in wrongful termination based on race, color, national origin, sex, pregnancy, gender identity, sexual orientation, religion, disability, or genetic information. These settlement restrictions break down as follows:
| Size of Employer | Compensation Available |
| 15-100 employees | Up to $50,000 |
| 101-200 employees | Up to $100,000 |
| 201-500 employees | Up to $200,000 |
| 500+ employees | Up to $300,000 |
Different restrictions on compensation may apply in cases of wrongful termination based on age discrimination. Instead of the compensatory or punitive damages available in other cases, employees may only recover “liquidated damages” in age discrimination claims with the EEOC. Liquidated damages aim only to compensate employees for the income lost due to an employer’s unlawful act. They don’t include any potential future losses (e.g., front pay) or any non-economic losses.
Fair Compensation Comes from Skilled Representation
Ultimately, the amount of compensation available in a wrongful termination case depends on numerous factors individual to each case. Many of these factors are outside of your immediate control as an employee. One factor that is in your control? Your legal representation. When you come to Tomorrow Law™ for help, you can rest assured that the support you receive has been honed over ten years of successful litigation on behalf of California employees.
Our attorneys are compassionate and aggressive advocates with the resources to take complex cases that other firms cannot. If you’ve been fired illegally and you’re looking to take action, contact our office today. We offer free initial consultations for Californians.
David Bibiyan, a top attorney at Tomorrow Law™, specializes in employment law, fiercely defending employees in cases of discrimination, harassment, wrongful termination, and wage issues. Known for his deep legal knowledge and dedication, he consistently secures favorable outcomes through skillful negotiation and litigation. His passion for justice drives his commitment to workers’ rights and fair employment practices.
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