What Goes Into the Value of a New York Employment Claim

No formula exists. Federal, New York State and New York City law list the kinds of relief a court or agency may order and put limits on some of them, but none assigns a dollar value to a claim.⁠^[7][5][6] Under the State law, when a court reviews a Division of Human Rights award for mental anguish, the Court of Appeals directs it to ask whether it was reasonably related to the wrongdoing, whether it was supported by the evidence, and how it compared with other awards for similar injuries.⁠^[1]

This page lists the legal factors that raise or limit recovery, each with its source. It gives no estimates, averages or ranges.

Which laws apply to the claim?

Three layers of law can apply to the same events. The first question is which of them covers the employer.

• Federal. Title VII covers an employer only if it has 15 or more employees for each working day in each of 20 or more calendar weeks in the current or preceding calendar year.⁠^[11]
• New York State. The New York State Human Rights Law (NYSHRL) covers all employers within the state.⁠^[12]
• New York City. For most employment provisions, the New York City Human Rights Law (NYCHRL) does not apply to an employer with fewer than four persons in its employ, but a claim of gender-based harassment can be brought against any employer.⁠^[13][14]

For race discrimination, a separate federal statute, 42 U.S.C. § 1981, has no employee-count threshold in its text.⁠^[15] See which employers are covered and the three layers of workplace law.

Is there a cap on damages?

Under federal Title VII and the ADA, yes, for some kinds of damages. The NYSHRL and the NYCHRL's court-action section state no dollar limit on compensatory damages.⁠^[2][5][6]

Law	Dollar limit in the statute
Federal: Title VII and ADA	The combined total of punitive damages and compensatory damages for future pecuniary losses and non-pecuniary losses is capped per person at $50,000 (15 to 100 employees), $100,000 (101 to 200), $200,000 (201 to 500) or $300,000 (more than 500).⁠[2][16][3]
Federal: 42 U.S.C. § 1981	The caps limit damages awarded under the capped section, which says nothing in it limits the relief available under § 1981.⁠[17]
New York State: NYSHRL	No dollar limit on compensatory damages is stated, and the statute sets no dollar cap on punitive damages in employment cases.⁠[5][18]
New York City: NYCHRL (court action)	No dollar cap on compensatory or punitive damages, and damages are not scaled to employer size.⁠[6]

The federal cap does not cover everything. Back pay and interest on back pay are not "compensatory damages" under the capped section, and the Supreme Court has held that the cap does not apply to front pay.⁠^[16][19] In a federal jury trial, the court does not inform the jury of the caps.⁠^[20] Details are in the federal damages caps guide.

How much pay was lost, and for how long?

Lost pay depends on the facts of the job: what the person earned, when the pay stopped, and what happened afterward. The law adds limits.

• Under Title VII, back pay cannot accrue from a date more than two years before the EEOC charge was filed.⁠^[7]
• Front pay is money for lost compensation between judgment and reinstatement, or in place of reinstatement.⁠^[21]

See back pay, front pay and reinstatement.

Did the person look for other work?

Under federal Title VII, interim earnings, or amounts earnable with reasonable diligence, reduce the back pay otherwise allowable.⁠^[7] The Supreme Court has said that a Title VII claimant who refuses a job substantially equivalent to the one denied forfeits back pay.⁠^[22] These are federal rules; this guide does not state a separate State or City rule on the point.

What is the proof of emotional harm?

Under the NYSHRL, the Court of Appeals has held that mental injury may be proved by medical testimony where that is available, but that psychiatric or other medical treatment is not a precondition to recovery.⁠^[23] It may be proved by the complainant's own testimony, corroborated by the circumstances of the alleged misconduct.⁠^[23] A court reviewing a Division of Human Rights award asks whether the relief was reasonably related to the wrongdoing, whether the award was supported by evidence, and how it compared with other awards for similar injuries.⁠^[1]

Under the NYCHRL, courts have said that the severity and pervasiveness of harassment go to the scope of damages, not to whether the employer is liable.⁠^[24] The emotional distress damages guide goes deeper.

Are punitive damages available, and under what standard?

Each layer sets its own conditions for punitive damages.⁠^[8][18][10]

Law	Standard or condition	Government employers
Federal: Title VII	The employee must show the employer acted with malice or with reckless indifference to federally protected rights.⁠[8] An employer is not vicariously liable for punitive damages for managers' decisions that are contrary to its good-faith efforts to comply with Title VII.⁠[25]	Punitive damages cannot be recovered against a government, government agency or political subdivision.⁠[8]
New York State: NYSHRL	Available in cases of employment discrimination related to private employers, for claims accruing on or after October 11, 2019.⁠[18]	Not available, because "private employer" excludes the State and local governments.⁠[9]
New York City: NYCHRL	Available where the wrongdoer acted with willful or wanton negligence, or recklessness, or a conscious disregard of the rights of others or conduct so reckless as to amount to such disregard.⁠[10]	Not stated in this guide.

Under the NYCHRL, an employer held liable solely for the conduct of an employee or agent can offer proof of its prevention policies and record, and that proof is considered in mitigation of civil penalties and punitive damages.⁠^[26][27] See punitive damages in New York employment cases.

Which employer defenses can shrink the remedies?

Some defenses do not defeat a claim but limit what can be awarded on it.

• Same-decision defense (federal Title VII). If the employee proves a protected characteristic was a motivating factor but the employer proves it would have taken the same action anyway, the court may grant declaratory and injunctive relief and attorney's fees, but may not award damages or order reinstatement, hiring, promotion or payment.⁠^[28]
• Good-faith accommodation efforts (federal ADA). In a failure-to-accommodate case, compensatory and punitive damages may not be awarded where the employer demonstrates good-faith efforts, in consultation with the person with the disability, to identify and make a reasonable accommodation.⁠^[29]

Other defenses are covered in the guide to employer defenses.

Can attorney's fees be shifted to the other side?

Under Title VII, the NYSHRL and the NYCHRL, a court may in its discretion award reasonable attorney's fees to the prevailing party.⁠^[30][31][32] See attorney's fee awards.

Where is the claim decided?

The forum affects both who decides and what can be ordered.

• State Division of Human Rights. After a hearing, the Commissioner may order hiring, reinstatement or upgrading with or without back pay, and may award compensatory damages.⁠^[33][5] The Division may also assess civil fines of up to $50,000, or up to $100,000 for a willful, wanton or malicious act, which are paid to the State.⁠^[34]
• NYC Commission on Human Rights. After a hearing, the Commission can order reinstatement, back pay and front pay, compensatory damages, and payment of the complainant's attorney's fees.⁠^[35] It may also impose a civil penalty of up to $125,000, or up to $250,000 for a willful, wanton or malicious act; civil penalties are paid into the City's general fund.⁠^[36][37]
• Court. In federal court, a party seeking compensatory or punitive damages under Title VII or the ADA may demand a jury.⁠^[38] In New York State court, issues of fact are tried by a jury, unless waived, in an action seeking a judgment for a sum of money only.⁠^[38]

The choice is hard to reverse: filing with the State Division or the City Commission generally bars a court suit on the same State or City claim.⁠^[39][6] Compare the forums in EEOC, State Division, City Commission or court and read election of remedies.

Is the claim under a different statute altogether?

Retaliation and whistleblower statutes carry their own remedy lists. New York State Labor Law § 740 allows reinstatement or front pay, lost wages and benefits, attorney's fees, a civil penalty of up to $10,000, and punitive damages if the violation was willful, malicious or wanton.⁠^[40] New York State Labor Law § 215 provides for liquidated damages of not more than $20,000, in addition to lost compensation, reinstatement or front pay, and attorneys' fees.⁠^[41]

See Labor Law § 740 and Labor Law § 215.

What else affects the amount a person keeps?

• Interest. Under the NYSHRL, the Court of Appeals has held that interest from the date of discrimination on a back pay award serves the law's purpose of making victims whole.⁠^[42]
• Taxes. Under federal tax guidance, the lost-wage part of a settlement is taxable wages, and emotional distress proceeds that do not originate from a physical injury or physical sickness are included in income.⁠^[43][44] See whether settlements are taxable.
• Timing. Under Title VII, back pay cannot accrue from a date more than two years before the EEOC charge was filed, so the filing date matters.⁠^[7] The deadlines guide lists the filing periods under each law.

Why past results and "average settlement" figures do not answer the question

Every factor above turns on facts that differ from one person to the next. The State-law review standard for Division mental-anguish awards itself looks to the evidence in the individual case.⁠^[1]

For that reason this guide publishes no typical, average or expected figures. Official agency totals, where they exist, are collected in New York workplace discrimination statistics; they are totals across many cases and say nothing about any single claim.

Whether to accept a settlement is the client's decision. New York's Statement of Client's Rights says a client is entitled to have their legitimate objectives respected by their attorney, including whether or not to settle the matter.⁠^[45]