Debunking the Myth: Huge Settlements in Discrimination Cases

There's a persistent belief that employers, particularly when faced with discrimination lawsuits, automatically offer huge settlements, especially if a lawyer is involved. However, this notion is often oversimplified and rooted in misconceptions. In reality, the situation is much more nuanced and controlled by a number of key factors.

Sorting Fact from Fiction

First, let’s address the question: Do employers fear that their employees will sue for discrimination so much that they offer huge settlements automatically, especially with a lawyer involved? The answer is a resounding no. I have never heard of a discrimination suit that settled without merit.

Employers know that proving discrimination is a complex and challenging endeavor. Before termination, companies have usually taken all necessary steps to ensure compliance and cover their bases. Therefore, there is little incentive to offer a settlement prematurely.

Why Small Settlements Exist

Many employers may offer modest settlements to avoid the hassle of dealing with legal issues and to maintain a good reputation. However, these settlements are far from generous. For starters, proving a case of discrimination is extremely difficult, and most companies will actively oppose such claims. A settlement will not come with an admission of guilt; it’s a common business practice to settle cases without acknowledging fault.

Moreover, companies operate with their legal teams to counter such claims effectively. There is no fear that a company will be intimidated by the presence of a lawyer. Corporate lawyers are experts at negotiation, and they are unlikely to be swayed by the mere involvement of legal representation.

No Automatic Huge Settlements

Employers that have robust policies, procedures, and practices in place to ensure they avoid discrimination are well-prepared to defend themselves in legal matters. Offering settlements on frivolous claims could open the floodgates to more baseless suits. This not only undermines the company's reputation but also increases the risk of legal penalties.

Employment lawyers, including plaintiffs, are professional and aim to maximize their chances of success. They are unlikely to pursue cases where the outcome is doubtful. A letter from a lawyer may feel threatening, but in many cases, it amounts to little more than a scare tactic with little follow-up.

Understanding the Reality of Settling

The idea of "huge settlements" is often exaggerated. While some larger settlements do occur, particularly in cases involving significant discovery and substantial evidence, these are the exception rather than the norm. Most employers, even those facing nuisance claims, are unlikely to offer large sums.

Nuisance settlements typically range from $500 to $2,000 and are often reached early in the process. However, the willingness to settle varies widely among employers. Settling for a “nuisance amount” is in the hands of the company, and they may decline even these modest offers.

Only in specific cases where the employer is a habitual harasser or discriminator, and the plaintiff has robust evidence, might a large settlement be offered. Such cases are rare and typically involve class action lawsuits with significant public relations hurdles for the defendant.

The Bottom Line

So, if you are considering suing your employer for discrimination, the odds are that you will be disappointed in the type of settlement offered. Be prepared to engage in a complex and potentially lengthy legal process. Remember, companies have mechanisms in place to defend themselves, and settlements are not granted automatically or generously.

Engaging legal counsel should be your last resort only after exhausting other avenues. Ensure you have a strong case and evidence that supports your claim. Without these, even the involvement of a lawyer may not yield the results you desire.