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The EEOC secures about $404 million dollars from employers each year. Employee lawsuits are expensive. An average out of court settlement is about $40,000. In addition, 10 percent of wrongful termination and discrimination cases result in a $1 million dollar settlement.
A jury awarded $1 million to an employee alleging retaliation for testifying in support of another employee who brought a sexual harassment case. The court reduced the verdict to $700,000, but it then awarded more than $1 million in fees to the employee's lawyers.
The Cost to your Company An average out of court settlement is about $40,000. In addition, 10 percent of wrongful termination and discrimination cases result in a $1 million dollar settlement. The majority of cases, about 67 percent, are ruled in the plaintiff's favor when taken to litigation.
The cost to settle a harassment claim out of court can be far lower than damages that a court might award. Small businesses that lose harassment lawsuits could be liable for upwards of $50,000 in damages and larger organizations, up to $300,000.
However, retaliation still happens; in fact, more that a third of the discrimination charges filed with the Equal Employment Opportunity Commission (EEOC) in the past few years include a retaliation claim. If you file a lawsuit for retaliation, you'll have to prove three things: You engaged in a protected activity.
To prove retaliation you must show you were subjected to a negative or adverse job action because of a complaint you made of harassment or discrimination. The following three statements must all be true to prove your case: You engaged in a protected activity. Your employer took action against you.
EEOC Timeliness and Deadlines Generally, charges filed under EEOC enforcement must be completed within 180 days of the last date of any alleged discrimination or harassment incident. If a state or local law prohibiting the same offense is in existence, in most cases, the deadline can be extended to 300 days.
It is a prerequisite to filing a wrongful termination lawsuit in state or federal court. Claimants must allow the EEOC and/or the CHR to investigate the claim for at least 180 days. After 180 days, if you haven't gotten a determination, you can request a right to sue letter.
For employers with 15-100 employees, the limit is $50,000. For employers with 101-200 employees, the limit is $100,000. For employers with 201-500 employees, the limit is $200,000.
The EEOC's settlement As part of the settlement, aggrieved individuals who allege they were subjected to harassment and/or a hostile work environment may receive a portion of the $700,000 settlement.
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