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Discrimination Damages in California: What You Can Recover Under FEHA

2025-10-29 14:30

If you’ve experienced workplace discrimination in California, you’re probably wondering: “How much money can I actually get?” The answer may surprise you. Unlike federal law, California’s Fair Employment and Housing Act (FEHA) allows for unlimited compensatory and punitive damages—meaning there’s no cap on what you can recover if you win your case.

This article explains the types of damages available under FEHA, how they’re calculated, what factors affect your compensation, and what you can realistically expect based on actual California settlements and verdicts.

The Big Advantage: FEHA Allows Unlimited Damages

California employees have a significant advantage over workers in other states. Under FEHA, there is no limit on compensatory or punitive damages for discrimination cases. This contrasts sharply with federal Title VII law, which caps damages based on company size.

FEHA vs. Title VII Damages Comparison

Category FEHA (California) Title VII (Federal)
Economic Damages Unlimited Unlimited
Emotional Distress Unlimited Capped
Punitive Damages Unlimited Capped
Combined Cap None $50K-$300K*
Attorney’s Fees Yes, if you win Yes, if you win
Jury Trial Available Available

*Title VII caps depend on employer size: $50K (15-100 employees), $100K (101-200), $200K (201-500), $300K (500+)

This means a California employee can recover millions in damages under FEHA, while the same case under federal law might be capped at $300,000. Smart employment attorneys always pursue FEHA claims when possible.

Types of Damages Available Under FEHA

California law recognizes four main categories of damages in discrimination cases:

1. Economic Damages (Actual Financial Losses)

Economic damages compensate you for measurable financial harm caused by discrimination:

Back Pay: Lost wages from the date of termination (or other adverse action) through trial or settlement. This includes:

  • Base salary
  • Overtime you would have earned
  • Bonuses and commissions
  • Raises you would have received
  • Retirement contributions (401k match, pension credits)
  • Stock options and equity

Front Pay: Future lost earnings if you can’t be reinstated to your job. Courts calculate this by estimating how long it will take you to find comparable employment, or how much less you’ll earn in a new position. Front pay is typically “discounted to present value” using economic formulas.

Lost Benefits: The value of benefits you lost, including:

  • Health insurance
  • Life and disability insurance
  • Paid time off
  • Company perks (car allowance, gym membership, etc.)

Out-of-Pocket Costs: Medical expenses for therapy or treatment related to the discrimination, job search expenses, and relocation costs.

2. Non-Economic Damages (Emotional Harm)

Also called “general damages,” these compensate for intangible harm:

Emotional Distress: Anxiety, depression, humiliation, loss of enjoyment of life, damage to reputation, and mental anguish caused by the discrimination.

Pain and Suffering: Physical manifestations of stress (headaches, insomnia, illness) and impact on personal relationships.

There’s no formula for calculating emotional distress damages. Juries consider:

  • Severity of the discrimination
  • Duration of the mistreatment
  • Whether you sought therapy or medical treatment
  • Testimony from you, family members, and mental health professionals
  • Impact on your daily life and career

California juries have awarded emotional distress damages ranging from $25,000 to several million dollars depending on the egregiousness of the conduct.

3. Punitive Damages (Punishment)

Punitive damages punish the employer and deter future misconduct. They’re only available when the employer acted with:

  • Malice: Intent to harm you
  • Oppression: Despicable conduct subjecting you to cruel and unjust hardship
  • Fraud: Intentional deception

Punitive damages are calculated based on:

  • How reprehensible the employer’s conduct was
  • The employer’s financial condition (larger companies face higher punitive awards)
  • The ratio between compensatory and punitive damages (courts generally limit punitive damages to 9 times compensatory damages, though exceptions exist)

Example: If you receive $200,000 in compensatory damages and the employer’s conduct was particularly egregious, a jury might award $1.8 million in punitive damages (9:1 ratio).

4. Attorney’s Fees and Costs

Under FEHA, if you win your case, the employer must pay your attorney’s fees and litigation costs. This includes:

  • Your lawyer’s hourly fees
  • Expert witness fees
  • Court filing fees
  • Deposition costs
  • Investigation expenses

This “fee-shifting” provision is crucial because it allows employees to hire experienced attorneys on a contingency basis (lawyer gets paid only if you win) without worrying about paying the employer’s legal bills if you lose.

How Courts Calculate Discrimination Damages

Back Pay Calculation

Back pay is relatively straightforward:

Formula: (Your salary + benefits) × (time unemployed or earning less)

Example: You earned $80,000/year ($6,667/month) and were unemployed for 18 months:

  • Back pay: $6,667 × 18 = $120,000
  • Lost benefits: $1,000/month × 18 = $18,000
  • Total back pay: $138,000

Courts subtract any income you earned during this period (unemployment benefits, new job wages) because you have a “duty to mitigate” by seeking comparable work.

Front Pay Calculation

Front pay is more complex and requires expert testimony:

Factors Considered:

  • Your age and remaining work life expectancy
  • Industry conditions and job availability
  • Whether you can find comparable work
  • Wage differential if you took a lower-paying job
  • Time until you’ll likely find equivalent employment

Example: You’re 45 years old, earned $100,000/year, and can only find work paying $70,000:

  • Annual loss: $30,000
  • Work life expectancy: 20 years
  • Total future loss: $600,000
  • Discounted to present value: ~$450,000

Emotional Distress Valuation

No formula exists for emotional distress, but juries consider:

Severity Factors:

  • Did you require therapy or medication?
  • How long did symptoms last?
  • Did discrimination cause physical illness?
  • How severe was the employer’s conduct?
  • Did you have suicidal thoughts or PTSD?

Typical Ranges (based on case severity):

  • Minor cases (brief discrimination, no treatment): $10,000-$50,000
  • Moderate cases (ongoing harassment, some therapy): $50,000-$200,000
  • Severe cases (prolonged abuse, extensive treatment, PTSD): $200,000-$1,000,000+
  • Extreme cases (devastating impact, suicide attempts): $1,000,000+

Documentation strengthens your claim: therapy records, prescriptions, testimony from mental health professionals, and statements from family members.

Factors That Increase Damages

Employer Conduct

  • Particularly egregious or humiliating discrimination
  • Pattern of discrimination affecting multiple employees
  • Employer knew about discrimination but did nothing
  • Retaliation after you complained
  • Discrimination by high-level executives
  • Company ignored its own anti-discrimination policies

Impact on You

  • Severe emotional distress requiring extensive treatment
  • Long period of unemployment
  • Blacklisting in your industry
  • Significant career setback (lost promotion opportunity)
  • Physical illness caused by stress
  • Damage to professional reputation

Company Size

  • Large, wealthy companies face higher punitive damages
  • Public companies are often willing to pay more to settle quietly
  • Small businesses may have limited ability to pay

Evidence Quality

  • Clear documentation of discrimination
  • Witnesses who corroborate your account
  • Emails or texts showing discriminatory intent
  • Statistics showing disparate treatment
  • Employer’s inconsistent explanations

Factors That Decrease Damages

Mitigation Failures

  • You didn’t look for comparable work
  • You turned down reasonable job offers
  • You delayed seeking employment
  • You rejected the employer’s offer of reinstatement

Quick Re-employment

  • You found a comparable or better job quickly
  • Your unemployment period was brief
  • You suffered minimal financial loss

Limited Emotional Impact

  • No therapy or medical treatment
  • Brief emotional distress
  • You continued normal activities
  • Minimal impact on daily life

Mixed Motive

  • Employer had both legitimate and discriminatory reasons for the action
  • Your performance had genuine issues
  • Discipline was partially justified

Comparative Fault

  • You contributed to the situation
  • You violated company policies
  • You failed to use internal complaint procedures

Real Settlement and Verdict Examples

Understanding actual case outcomes helps set realistic expectations. Here are examples from California FEHA discrimination cases:

Small Cases ($50,000-$150,000)

Race Discrimination – $75,000 Settlement
African American warehouse worker subjected to racial slurs by supervisor over 6 months. Complained to HR, then fired for “performance issues.” Re-employed within 2 months. Settlement included $30,000 back pay, $35,000 emotional distress, $10,000 attorney’s fees.

Age Discrimination – $125,000 Verdict
55-year-old manager replaced by younger employee. Evidence showed age-related comments. Unemployed for 8 months. Jury awarded $60,000 back pay, $50,000 emotional distress, $15,000 punitive damages.

Pregnancy Discrimination – $95,000 Settlement
Employee denied light-duty work while pregnant, then terminated. Found new job within 3 months. Settlement: $25,000 back pay, $50,000 emotional distress, $20,000 attorney’s fees.

Medium Cases ($200,000-$500,000)

Disability Discrimination – $350,000 Verdict
Employee with diabetes denied reasonable accommodation, then fired. Unemployed for 18 months. Developed depression requiring therapy. Jury awarded $120,000 back pay, $100,000 front pay, $80,000 emotional distress, $50,000 punitive damages.

Gender Discrimination – $425,000 Settlement
Female executive paid significantly less than male counterparts despite superior performance. Constructively discharged after complaining. Settlement included $200,000 back pay (wage differential), $125,000 emotional distress, $100,000 attorney’s fees.

Religious Discrimination – $280,000 Verdict
Muslim employee harassed about religion, denied time for prayer, terminated after complaining. Evidence of severe emotional distress and PTSD. Award: $80,000 back pay, $150,000 emotional distress, $50,000 punitive damages.

Large Cases ($1,000,000-$10,000,000+)

Race Discrimination – $2.8 Million Verdict
African American manager subjected to years of racial harassment by executives. Company ignored multiple complaints. Severe emotional distress, hospitalization for stress-related illness. Jury awarded $300,000 back pay, $500,000 emotional distress, $2,000,000 punitive damages.

Disability Discrimination – $1.5 Million Settlement
Employee with bipolar disorder harassed, denied accommodation, and terminated. Employer made discriminatory statements in termination meeting. Unable to find comparable work due to industry blacklisting. Settlement: $400,000 economic damages, $600,000 emotional distress, $500,000 punitive damages.

Sexual Orientation Discrimination – $4.2 Million Verdict
Gay employee subjected to years of harassment, hostile work environment, and eventual termination. Pattern of discrimination against LGBTQ employees. Extensive evidence of malice. Award: $600,000 compensatory damages, $3,600,000 punitive damages.

Age Discrimination (Class Action) – $8.5 Million Settlement
Technology company systematically laid off employees over 40. Pattern affected 50+ workers. Settlement fund established for all affected employees, with individual awards ranging from $50,000 to $400,000 depending on circumstances.

Pregnancy Discrimination – $1.9 Million Verdict
Pregnant executive denied promotion, demoted, then fired. Clear evidence of pregnancy-related comments. Lost significant earnings potential. Severe emotional distress. Award: $500,000 economic damages, $400,000 emotional distress, $1,000,000 punitive damages.

Typical Settlement Ranges by Claim Type

Based on California FEHA cases, here are general settlement ranges (actual results vary widely):

  • Race/National Origin Discrimination: $75,000-$500,000 (higher with pattern evidence)
  • Gender Discrimination: $100,000-$600,000 (higher with pay disparity)
  • Age Discrimination: $80,000-$400,000 (depends on earnings and re-employment)
  • Disability Discrimination: $100,000-$500,000 (higher with accommodation denial)
  • Pregnancy Discrimination: $75,000-$350,000 (depends on leave denial vs. termination)
  • Religious Discrimination: $75,000-$400,000 (higher with harassment)
  • Sexual Orientation/Gender Identity: $100,000-$600,000 (depends on harassment severity)

Cases with punitive damages or class action claims can exceed these ranges significantly.

Tax Treatment of Discrimination Settlements

How your settlement is taxed matters:

Taxable Portions:

  • Back pay (subject to income tax and employment taxes)
  • Front pay (taxed as ordinary income)
  • Punitive damages (fully taxable as ordinary income)

Tax-Free Portions:

  • Emotional distress damages for physical illness or injury
  • Attorney’s fees (paid directly to lawyer, not taxed to you if structured properly)

Gray Area:

  • Emotional distress damages without physical symptoms are generally taxable under federal law

Important: Settlement agreements should specify how much is allocated to each category. Consult a tax professional before finalizing any settlement to minimize tax consequences.

Settlement vs. Trial: Pros and Cons

Most discrimination cases settle before trial. Here’s why:

Settlement Advantages

  • Certainty: You know exactly what you’ll receive
  • Speed: Settlements happen faster than trials (months vs. years)
  • Lower stress: Avoid the emotional toll of trial
  • Privacy: Settlement terms can be confidential
  • Reduced risk: No chance of losing at trial
  • Immediate payment: Money comes faster

Settlement Disadvantages

  • Lower amount: Settlements are typically less than potential verdicts
  • No vindication: No public finding that employer discriminated
  • Confidentiality: You may be barred from discussing the case
  • No precedent: Doesn’t help other employees

Trial Advantages

  • Higher potential recovery: Juries can award unlimited damages
  • Public vindication: Court finding that discrimination occurred
  • Punitive damages: Only available through trial (rarely in settlements)
  • Deterrence: Sends message to employer and industry

Trial Disadvantages

  • Risk: You might lose and get nothing
  • Time: Trials take 2-4 years from filing to verdict
  • Stress: Testifying and cross-examination are difficult
  • Publicity: Trials are public record
  • Costs: If you lose, you pay expert fees and costs (not employer’s attorney’s fees under FEHA)

Most attorneys recommend settling strong cases for a reasonable amount rather than gambling at trial, but the decision is ultimately yours.

Attorney’s Fees: The Employer Pays If You Win

FEHA’s attorney’s fee provision is a game-changer. If you prevail (win at trial or obtain a favorable settlement), the employer must pay your attorney’s reasonable fees and costs.

What This Means:

  • Attorneys take FEHA cases on contingency (they only get paid if you win)
  • Your lawyer has incentive to maximize your recovery
  • You keep more of your settlement/verdict
  • Employers face additional financial risk beyond damages

How It Works:

  • Your attorney tracks all time spent on your case
  • If you win, your lawyer submits a fee request to the court
  • Employer pays those fees in addition to your damages
  • In settlements, attorney’s fees are negotiated separately

Example: You win $300,000 at trial. Your attorney spent 400 hours on the case at $500/hour. Employer pays:

  • $300,000 to you
  • $200,000 in attorney’s fees
  • Total employer cost: $500,000

This fee-shifting provision levels the playing field between employees and well-funded employers.

Your Duty to Mitigate Damages

California law requires you to make reasonable efforts to minimize your damages. This means:

What You Must Do:

  • Look for comparable employment after termination
  • Accept reasonable job offers
  • Apply for unemployment benefits
  • Keep records of your job search efforts
  • Accept reasonable offers of reinstatement from your employer

What “Comparable” Means:

  • Similar salary and benefits
  • Similar job duties and responsibilities
  • Similar commute and working conditions
  • Same general line of work

What You Don’t Have To Do:

  • Take a significant pay cut
  • Accept a demotion
  • Move to a different city
  • Work in a different field

Impact on Damages: If you fail to mitigate, the employer can reduce your back pay and front pay awards by the amount you could have earned with reasonable effort.

Example: You earned $100,000/year and were fired. You received a comparable job offer paying $95,000 but turned it down to hold out for $100,000. You were unemployed for 12 months, then found a $100,000 job. Your back pay will likely be reduced by $95,000 (what you could have earned) rather than being calculated at $100,000.

Keep detailed records of every job you apply for, interviews you attend, and offers you receive or decline.

Frequently Asked Questions

1. How long do I have to file a FEHA discrimination claim?

You must file a complaint with the California Civil Rights Department (CRD, formerly DFEH) within three years of the discriminatory act. After the CRD investigates (or issues a right-to-sue notice), you have one year to file a lawsuit. Don’t delay—evidence disappears and witnesses’ memories fade.

2. Can I get damages if I’m still employed?

Yes. You can recover damages for discriminatory actions even if you weren’t terminated, such as:

  • Denial of promotion
  • Discriminatory demotion
  • Unequal pay
  • Hostile work environment
  • Denial of reasonable accommodation

Your damages might include lost wages (the difference between what you earned and what you should have earned), emotional distress, and punitive damages.

3. Do I pay taxes on my discrimination settlement?

It depends. Back pay and front pay are taxable as ordinary income. Punitive damages are also fully taxable. Emotional distress damages are tax-free only if they compensate for physical injury or illness. Your settlement agreement should specify the allocation of damages to minimize taxes. Consult a tax professional.

4. What if my employer is a small business with limited money?

Small employers may have less ability to pay large verdicts, but they’re still liable for all damages under FEHA. Practical considerations:

  • Settlement amounts may be limited by ability to pay
  • You may accept structured payments over time
  • You might be able to collect from business assets or owner’s personal assets (if owner personally discriminated)
  • Employment practices liability insurance (EPLI) may cover the claim

Even small employers often have insurance that covers discrimination claims.

5. Can I get my job back (reinstatement) instead of money?

Yes. FEHA allows courts to order reinstatement as a remedy. However, most employees prefer monetary damages because:

  • Returning to an employer who discriminated is often uncomfortable
  • Workplace relationships are damaged
  • You may face retaliation despite court orders
  • Front pay compensates for future lost earnings without the stress of returning

If you want your job back, discuss this with your attorney early in the case.

Related Topics

  • California Workplace Discrimination – Overview of FEHA protections and claim process
  • California – Protected Classes – What types of discrimination FEHA prohibits
  • California – Filing a FEHA Claim – Step-by-step claim filing process
  • California – Discrimination Attorneys – How to find and evaluate employment lawyers
  • California – Retaliation Claims – Protection against employer retaliation for complaining
  • California – Statute of Limitations Employment – Deadlines for discrimination claims
  • California – Settlement Negotiations – How to negotiate maximum compensation

Legal Disclaimer

This article provides general information about discrimination damages under California’s Fair Employment and Housing Act. It is not legal advice and does not create an attorney-client relationship. Every discrimination case is unique, and damage awards depend on specific facts, evidence, and legal arguments. Settlement and verdict amounts discussed are examples only and do not guarantee similar results in your case.

If you believe you’ve experienced workplace discrimination, consult with a qualified California employment attorney immediately to evaluate your specific situation and protect your rights. Many employment attorneys offer free consultations and work on contingency (no fee unless you win).

The information in this article is current as of October 2025 but laws and court interpretations change. Always verify current law with a licensed attorney before making legal decisions.

Experienced California workplace discrimination? Consult an employment attorney to understand your rights and potential compensation under FEHA.