Share on Facebook
Share on X
Share on LinkedIn
By Douglas Lipsky
Partner

Imagine this: You’ve been dealing with unfair treatment at work for months. Maybe it was subtle at first—a comment here, a joke there. But over time, it became clear that how you were being treated was based on your race, gender, age, or another protected characteristic. 

After consulting with a lawyer, you filed a discrimination claim against your employer. Now, a settlement offer is on the table, and you’re wondering if you should accept it or keep fighting. Before you make any decisions, here are some key factors to consider when settling a discrimination claim.

The Strength of Your Discrimination Case

The first thing you should consider is how strong your case is. Settlement offers often depend on how likely you are to win at trial:

  • Do you have strong evidence supporting your claim–emails, witness statements, or documents–proving discrimination?
  • Are there coworkers or others willing to testify on your behalf? Witnesses who can corroborate your story may strengthen your position.
  • Does your employer have a known history of similar claims? Patterns of behavior might indicate that your case is part of a broader issue and could increase your chances of success in court.

If you have substantial evidence, you may feel more confident about rejecting a settlement offer and proceeding to trial. On the other hand, if your case is weaker or lacks corroborating evidence, accepting a fair settlement might be the better option.

What Does the Settlement Cover?

When you receive a settlement offer, it’s important to understand exactly what is included. Typically, a settlement agreement will include:

  • Monetary compensation–How much are they offering in terms of financial compensation? This can include lost wages, future earnings, or damages for emotional distress.
  • Non-monetary terms–Sometimes, settlements offer non-financial benefits. For example, you may receive a letter of recommendation, changes in company policy, or even reinstatement to your position.

You should also review any conditions or waivers in the agreement. For instance, many settlement agreements include a confidentiality clause that prohibits you from discussing the terms of the settlement or the details of your case. Make sure you’re comfortable with these terms before signing anything.

Future Employment Opportunities

Another factor to consider is how the outcome of your case might affect your career moving forward.

  • Reputation: Unfortunately, discrimination cases can impact your professional reputation, even when you’re the victim. A trial may make your case public, while a settlement often includes a confidentiality agreement that keeps the matter private.
  • Reinstatement: If part of your settlement includes returning to your job, think carefully about whether you want to go back to a potentially hostile environment. In some cases, it may be better to negotiate for a severance package or look for employment elsewhere.

Protecting your future career is critical. A settlement could prevent further harm to your reputation and give you more control over your professional path.

Financial Implications

Lastly, consider the financial implications of settling versus going to trial. While trials can lead to higher awards, they come with risks and costs.

  • Legal Fees: Going to trial often means higher legal fees, and while some attorneys work on a contingency basis, others charge hourly rates. Even with a strong case, the financial burden can pile up.
  • Time Lost: Trials take time. If your case drags on, you might find yourself missing work or losing wages while attending court. A settlement provides more immediate compensation and allows you to avoid further disruptions.

While the potential payout in court might be higher, a settlement offers a more certain and immediate resolution.

Making the Right Decision

Settling a discrimination claim is a deeply personal decision, and there’s no one-size-fits-all answer. You have to weigh the strength of your case, what’s being offered, and how much time and emotional energy you’re willing to spend.

Before making any decisions, consult with your attorney to understand all the legal and financial implications of the offer. They can provide you with the guidance needed to make the best choice for your situation. Remember, whether you choose to settle or go to trial, the goal is to find a resolution that feels right for you.

Talk To An Experienced Employment Discrimination Attorney Today

If you’re facing a discrimination claim and need advice, contact Lipsky Lowe. We’re here to guide you through the process and help you make the best decision for your future.

About the Author
Douglas Lipsky is a co-founding partner of Lipsky Lowe LLP. He has extensive experience in all areas of employment law, including discrimination, sexual harassment, hostile work environment, retaliation, wrongful discharge, breach of contract, unpaid overtime, and unpaid tips. He also represents clients in complex wage and hour claims, including collective actions under the federal Fair Labor Standards Act and class actions under the laws of many different states. If you have questions about this article, contact Douglas today.