Average Wrongful Termination Settlement in California

If you were wrongfully terminated and are mulling a lawsuit, you might wonder what the average wrongful termination settlement is. So it may surprise you to learn that there isn’t one.

Instead, a case’s settlement value depends on numerous factors, including your employment history, your profession, your employer’s reasons for dismissing you, and your claim’s legal grounds. Additionally, working with an experienced wrongful termination lawyer who can help you devise specific strategies tailored to your unique circumstances can significantly enhance your chance of being awarded substantial compensation.

While pinpointing an average wrongful termination settlement figure is impossible, understanding the various factors influencing wrongful termination settlement values in California helps. So, let’s examine the most important of these considerations and draw a clearer picture of what you might expect.

What Factors Affect Wrongful Termination Settlements?

While there isn’t an average wrongful termination settlement, several factors can significantly impact the average settlement for wrongful termination in California. Each case is unique, and factors vary, but these are the primary considerations affecting settlement amounts.

Severity of Employer Misconduct

The more egregious your employer’s conduct, the higher the potential settlement. As you’ll see in our case examples below, cases involving blatant discrimination or retaliation often result in more substantial settlements and punitive damages. For example, if an employer fired an employee solely due to their race or gender, this would be considered severe misconduct and could lead to a higher payout.

Amount of Lost Wages and Benefits

One of the primary components of a wrongful termination settlement is economic damages, also known as compensation for lost wages and benefits. This compensation includes the income you would have earned from termination until your settlement or court judgment. It also covers lost benefits such as health insurance, retirement contributions, and other employment perks.

Emotional Distress and Mental Anguish

Wrongful termination can lead to significant emotional distress and mental anguish, also known as noneconomic damages. Compensation for these noneconomic damages can vary but often dramatically increases the settlement. Courts consider factors such as the duration of your unemployment, its impact on your mental health, and its overall disruption to your life.

Mitigation of Damages

Courts expect wrongfully terminated employees to make reasonable efforts to find new employment. If you actively seek new work and document these efforts, it can positively influence your settlement amount. Failure to mitigate damages by not looking for a new job can reduce the settlement.

Length of Employment

Employment duration can also impact the settlement. Long-term employees who have built a substantial career with the employer and have a strong work history may receive higher settlements than those with shorter tenure.

Availability of Evidence

The strength and availability of evidence supporting your wrongful termination claim will play a critical role. Solid evidence, such as documented communications, witness statements, and employment records, can significantly boost the settlement value.

Location and Jurisdiction

The location where you file your lawsuit can influence the settlement amount. For instance, settlements in urban areas like Los Angeles may differ from those in rural areas. A wrongful termination lawyer may secure different outcomes based on local employment laws and jury tendencies.

Lawyer Experience and Skill

Your attorney’s experience and skill can significantly affect your case’s outcome. A seasoned wrongful termination lawyer with a successful track record can better navigate legal complexities, present a compelling case, and negotiate higher settlements.

Employer’s Willingness to Settle

Your employer’s willingness to settle out of court can also influence the settlement amount. Some employers prefer to settle quickly to avoid the costs associated with a trial, potentially leading to higher settlements.

Publicity and Reputation

If your case has the potential to attract media attention, your employer might be more inclined to offer a higher settlement to protect their reputation. Publicity surrounding a wrongful termination lawsuit can significantly affect a company’s public image and customer trust.

How Much Is a Wrongful Termination Lawsuit Worth?

Settlements and verdicts range widely, from a few thousand dollars to millions, depending on case specifics and the basis for wrongful termination. While typical awards tend to hover between $10,000 and $100,000, it can be challenging to determine a wrongful termination lawsuit’s worth overall, and many verdicts have been much higher. Here are just a few worth noting:

• Martha Martinez v. Rancho Gordo—in 2023, a CA court awarded the plaintiff nearly $252,000 in noneconomic and economic damages for wrongful termination stemming from pregnancy discrimination;
• Goodson v. County of Plumas—in 2023, a CA court awarded plaintiff $752,214 in economic and noneconomic damages for retaliatory wrongful termination after she filed a sexual harassment claim;
• Camile Almada v. HHCare, LLC, Jacqueline Hawk—in 2023, a CA court awarded Plaintiff $3 million in noneconomic and punitive damages, ruling the defendant fired her in direct retaliation for lodging legally protected misclassification complaints; and
• Ruvalcaba v. Santa Cruz City Schools, et al.—in 2022, a CA court awarded Plaintiff $35 million in noneconomic and punitive damages for a wrongful termination claim stemming from civil rights, disability, and discrimination complaints.

As you can see, settlements vary greatly and are often situationally dependent. An experienced advocate at Lawyers for Justice can review your claim and work with you to build a robust case, enhancing your chances of securing substantial compensation and damages.

Lawyers for Justice Can Help Maximize Your Wrongful Termination Settlement

Navigating a wrongful termination lawsuit can be challenging. Hiring an experienced Los Angeles wrongful termination lawyer can significantly impact the outcome of your case. At Lawyers for Justice, our award-winning attorneys have combined decades of experience in employment law and wrongful termination. They can provide expert guidance, ensuring your case is well-prepared and presented effectively.

Our esteemed advocates can also negotiate on your behalf, aiming to secure the best possible settlement without going to trial. Additionally, we offer free case evaluations and never collect a dime in fees unless you win. By contacting us today, you better position yourself to achieve a favorable outcome and secure the compensation you deserve.