What’s a discrimination suit cost an employer?
March 12, 2010 by Jim GiulianoPosted in: Employment law, In this week's e-newsletter, Latest News & Views, Money, Supervisors
Here’s a way to kick off your next talk to supervisors about avoiding discrimination charges.
A recent study released by UCLA-RAND Center for Law and Public Policy detailed the “average” defense costs and jury awards in California employment law discrimination cases.
The study shows:
- The median legal costs to a defendant/employer through trial are $150,000. Even if the case goes to summary judgment — meaning a judge dismisses the charges before going to trial — the employer’s legal costs are about $75,000.
- And all that cash doesn’t include awards to employees who successfully waged lawsuits. The data for 360 cases in which 207 plaintiffs won show the median award in the low six figures.
- Of the 207 cases in the study where the plaintiff prevailed, the verdicts ranged from mid-five figures to low seven figures. The median verdict was in the low six figures.
- Verdicts for race and national origin discrimination tended to be at the higher end; discrimination for medical conditions and sexual orientation tended to be on the higher end.
Tags: Discrimination, UCLA-RAND Center for Law and Public Policy
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March 23rd, 2010 at 8:36 am
Look at DeKalb County in metro Atlanta, GA. It is taking a discrimination case from 4 years ago through the courts (this week actually) because the previous and current leaders wanted to, as they said publicly, create a “darker administration”. I hear they’ve spent over $2 million to defend against this one suit. There has been suit, after suit, after suit because there is no “individual” liability for these government leaders. So the taxpayer ends up footing the extravagant bills for poor management appointed for political/personal favors.
July 26th, 2010 at 7:58 pm
Its really tough to determine the REAL cost of discrimination. Not only defimation to your own business. Your essentially saying your own business isnt good enough for the people that work there, much less your employees. Probably one of the worst things that could ever happen internally
July 30th, 2010 at 12:06 am
Some employers have to learn the hard way.. my former employer failed to engage in the interactive process and denied reasonable accommodation. I hope it cost them alot to defend and then maybe they will revise their policies and refrain from futher discriminatory practices!!!