
Does the United States Equal Employment Opportunity Commission (EEOC) and Washington State Human Rights Commission (WSHRC) enforce pre-litigation settlement caps? Here’s my point of view.
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Settling Employment Discrimination Claims: EEOC and WSHRC Settlement Caps
People who experience workplace discrimination often have the option to address their claims through federal or state agencies before filing a lawsuit.
NOTE: Individuals pursuing claims under Title VII of the Civil Rights Act of 1964 (Title VII), the Americans with Disabilities Act, the Genetic Information Nondiscrimination Act, or the Age Discrimination in Employment Act must first exhaust the United States Equal Employment Opportunity Commission’s (EEOCs) administrative prerequisites before filing suit in court — this is mandatory, not optional.
In Washington State, two main agencies that handle these matters are the EEOC and the Washington State Human Rights Commission (WSHRC), which enforces state-level protections. A crucial question for those considering settlement through these agencies is whether any financial limits apply to the amount they can recover. The sections below take a closer look at whether such settlement caps exist in either forum.
1. U.S. Equal Employment Opportunity Commission (EEOC) Settlement Cap
The EEOC* plays a crucial role in handling discrimination claims under federal laws, including Title VII. It investigates claims of discrimination in employment based on race, color, religion, sex (including pregnancy, childbirth, or related conditions, transgender status, and sexual orientation), national origin, age (40 or older), disability or genetic information
In terms of settlement, the EEOC does not impose a specific dollar cap for settlements that occur during its investigation or conciliation process. Instead, the agency facilitates settlement discussions between the claimant (charging party) and the employer (respondent). The settlement amount is generally determined through negotiation and mutual agreement between both parties, with the goal of resolving the dispute efficiently without proceeding to litigation.
However, there are guidelines that could influence the settlement amount:
Back Pay and Front Pay: Settlements may include financial compensation for lost wages (back pay) or future lost wages (front pay), depending on the circumstances of the case.
Compensatory Damages: Claimants may be eligible for compensatory damages for emotional distress, pain and suffering, and other non-economic losses. These damages are capped depending on the size of the employer’s business, as prescribed by the Civil Rights Act. See Punitive Damages, below.
Punitive Damages: Title VII allows for the recovery of punitive damages in cases of intentional discrimination with malice or reckless indifference. Such recoveries are–similar to compensatory damages–capped depending on the size of the employer’s business.
NOTE: Limits on Compensatory & Punitive Damages. There are limits on the amount of compensatory and punitive damages a person can recover. These limits vary depending on the size of the employer:
• For employers with 15-100 employees, the limit is $50,000.
• For employers with 101-200 employees, the limit is $100,000.
• For employers with 201-500 employees, the limit is $200,000.
• For employers with more than 500 employees, the limit is $300,000.
Attorney’s Fees, Expert Witness Fees, and Court Costs: A victim of discrimination also may be able to recover attorney’s fees, expert witness fees, and court costs.
While the EEOC does not impose a strict cap, settlement amounts in cases that the EEOC resolves are often guided by the circumstances of the claim and the financial situation of the employer.
2. Washington State Human Rights Commission (WSHRC) Settlement Cap
In Washington State, the WSHRC handles, inter alia, claims of employment discrimination under the Washington Law Against Discrimination (WLAD) — it is responsible for enforcing the WLAD. The WSHRC works similarly to the EEOC* but addresses claims under state law.
One notable difference, however, is that the WSHRC has specific caps for pain and suffering awards by administrative law judges (ALJ) under the WLAD. The maximum amount of damages that an appointed ALJ can award to an employment-discrimination claimant for humiliation and mental suffering is $20,000. See RCW 49.60.250(5)*. Moreover, based on my previous communications the WSHRC, even if the parties settle the claim before appointment of an ALJ, the maximum settlement amount a claimant can recover for pain and suffering in a WSHRC-administered settlement remains $20,000. This cap is part of the administrative process under the WLAD and applies specifically to settlements facilitated by the WSHRC before arbitration or filing a lawsuit.
That said, claimants who seek settlements beyond this $20,000 cap still have options. They can pursue private settlements outside of the WSHRC administrative process. In these cases, the parties involved may agree to a settlement that exceeds the WSHRC cap. However–based on my experience–the WSHRC will likely require the parties to report any such settlement to the WSHRC if the claims are still under active investigation by the agency. This reporting requirement ensures that the WSHRC is aware of the resolution, even if it falls outside the agency’s prescribed settlement limits.
Conclusion
Both the U.S. EEOC and the WSHRC provide opportunities for claimants to resolve employment discrimination disputes without proceeding to litigation, but the processes differ in key respects. While the EEOC does not impose a specific settlement dollar cap, settlements are guided by the nature of the claim and the employer’s financial capacity. In contrast, the WSHRC does have a cap for pain and suffering settlements, limiting them to $20,000 under the Washington Law Against Discrimination; claimants seeking to exceed this amount may still pursue private settlements, provided they comply with reporting requirements if the WSHRC is involved in the investigation.
READ OUR RELATED ARTICLES
We invite you to read more of our articles related to this topic:
» EEOC: The Notice of Right to Sue
» Title VII of the Civil Rights Act of 1964
» What is WA State’s Law Against Employment Discrimination?
» WSHRC: Organization and Operations
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If you would like to learn more, then consider contacting an experienced employment attorney to discuss your case. This article is not offered as legal advice and will not establish an attorney-client relationship with Law Office of Gregory A. Williams or the author of this article; please refer to our Disclaimer | Terms of Use | Privacy Policy for more information.
–gw




