What happens if the EEOC finds a company guilty?
Asked by: Granville Denesik | Last update: February 13, 2026Score: 4.7/5 (14 votes)
If the EEOC finds a company guilty of discrimination (determines "reasonable cause"), they try conciliation to resolve it; if that fails, the EEOC or employee can file a lawsuit seeking remedies like back pay, reinstatement, promotions, damages (compensatory/punitive), policy changes, training, and posting notices, with penalties escalating to significant legal action and financial repercussions for the employer.
What happens if a company is found guilty of discrimination?
Consequences for Employers
Compensatory Damages: These aim to reimburse the employee for losses such as back pay, emotional distress, or medical expenses linked to the discriminatory act. Punitive Damages: In cases of egregious discrimination, courts may impose additional punitive damages to deter future misconduct.
What is the average EEOC settlement amount?
The average EEOC settlement amount typically ranges from approximately $40,000 to $45,000 for Californians. Cases that go to trial can generally receive rewards of approximately $200,000 to $700,000. Only about 1-2% of EEOC cases make it to trial, so this settlement range represents a small subset.
What happens if a company is found guilty of retaliation?
In cases where the Labor Commissioner has determined that sufficient evidence exists to support a finding of retaliation, the Labor Commissioner may order a variety of remedies including reinstatement, payment of lost wages, interest on the lost wages, removal of related negative reports in the employee personnel file, ...
What are the odds of winning the EEOC case?
Q: What Are the Chances of Winning an EEOC Case? A: The EEOC has a very high success rate when it comes to court decisions, reaching favorable outcomes in nearly 96% of all district court cases stemming from EEOC complaints.
5 Ways To Prove Your Employer Is Lying (With Examples!)
How much of a 30K settlement will I get?
You'll get around $13,000 to $17,000 out of your $30K settlement in most cases. That might surprise you, but once the legal fees, medical bills, and case costs are subtracted, what's left is your actual take-home amount. The exact number depends on how your case played out.
Is it worth suing a big company?
Big companies will sometimes make it harder for plaintiffs and draw out the case to cost them more money because the company has the money to provide a better defense. In that case, taking a settlement could be your best option.
Is it worth suing a company for discrimination?
Filing a discrimination lawsuit is worth considering if you've experienced illegal discrimination that caused significant harm, you have evidence to support your claims, and the potential compensation justifies the time and emotional investment required.
Does an EEOC investigation cost the employer money?
The employer is likely to face substantial legal costs in handling the case. If they do not have an internal legal department, they will need to hire outside counsel, which can be extremely expensive. The employer, if found guilty, could owe a substantial amount of damages to the employee who filed the complaint.
What is the 80% rule in discrimination?
In essence, it states that the hiring rate for any protected group – distinguished by race, gender, or age – should be at least 80% of the hiring rate of the most selected group.
What to do with a $200,000 settlement?
What Do I Do if I Have a Large Settlement?
- Hire a Financial Advisor.
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What is a good settlement figure?
A “good” figure is one that fairly compensates the victim for all losses incurred due to the accident, including medical bills, ongoing treatment, future medical bills, lost wages, and pain and suffering.
What is a good settlement offer for discrimination?
Average Settlement – EEOC data shows average discrimination settlements are around $40,000, but severe cases can reach six or seven figures. Factors That Affect Value – Case type, employer size/financial strength, jurisdiction, and whether punitive damages are available all impact potential recovery.
Does EEOC award damages?
Remedies May Include Compensatory & Punitive Damages
Compensatory and punitive damages may be awarded in cases involving intentional discrimination based on a person's race, color, national origin, sex (including pregnancy, transgender status, and sexual orientation), religion, disability, or genetic information.
What happens if the EEOC finds cause?
If EEOC determines there is reasonable cause to believe discrimination has occurred, both parties will be issued a Letter of Determination stating that there is reason to believe that discrimination occurred and inviting the parties to join the agency in seeking to resolve the charge through an informal process known ...
Do employers usually settle discrimination cases?
Over 95% of employment cases settle before or at trial.