Types of Settlements for Wrongful Termination

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The average settlement in wrongful terminations case ranges between $100,000 and $1 million. However, as of 2005, these settlements are typically between $300,000 and $500,000. The settlement covers lost wages but only covers attorney's fees and punitive damages under certain circumstances.

Damages Recoverable

Employees are entitled to recovery of lost wages and the value of benefits lost due to wrongful termination. Only employees terminated in violation of the Fair Employment and Housing Act (termination based on discrimination and retaliation) are eligible to recover punitive damages and attorney's fees.

Average Settlement

Sources vary on the average settlement for wrongful termination cases. However, most sources agree that the average verdict against employers in these cases typically range from $300,000 to $500,000 as of reports published in 1996 and 2005. The amount ranges based on the exact circumstances and type of complaint.

Skewed Data

Data related to wrongful termination settlements can easily be skewed. Due to the low number of publicized cases, a small number of large settlements can skew the average settlement number higher than it really may be.