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The Daily Insight

How much does a discrimination case cost?

Author

Mia Ramsey

Published May 21, 2026

According to EEOC data, the average out-of-court settlement for employment discrimination claims is about $40,000. Studies of verdicts have shown that about 10% of wrongful termination cases result in a verdict of $1 million or more.

Can you include legal fees in a lawsuit?

General Rule California follows the “American Rule,” which provides that everyone has to pay their own attorneys’ fees – even if you win at trial. Sometimes the fees can equal (or even surpass) the amount at stake.

What are attorney’s fees and costs in discrimination litigation?

Attorney’s fees and costs of in California discrimination cases can be a major factor in assessing whether the parties go forward with litigation. “Costs” are distinguished from “Attorney’s Fees.” A typical “cost” is the court filing fees, or the charges by a court reporting service to take deposition testimony and provide transcripts.

Do you pay hourly for employment discrimination lawyer?

Hourly fees can be advantageous if the lawyer is able to get a recovery for you with limited work. That way, you can keep the total settlement or award paid by your employer and pay only minimal hourly attorneys’ fees.

What happens if you win an employment discrimination lawsuit?

If you win your employment discrimination lawsuit, you may be awarded attorneys’ fees and costs. Your fee agreement may specify that these amounts will be added to your total award to determine the lawyer’s contingent fee. In other words, your lawyer’s final fee may amount to more than the attorneys’ fees awarded by the court.

Can a plaintiff deduct attorney fees in a non-business case?

Thus, most plaintiffs will no longer be able to deduct the costs and attorneys’ fees associated with non-business related litigation. However, plaintiffs engaged in litigation concerning whistle blowing or unlawful discrimination enjoy an exemption from this new rule.