What Are the Penalties for Employers Who Discriminate?

Employers can face civil penalties and financial liability for discriminatory practices. Federal or state agencies that investigate workplace discrimination claims can fine employers for civil rights violations. Victims of discrimination can file a civil lawsuit against their employer to recover compensation and damages.

Employers must have fair workplace practices for workers and job applicants. There are financial and legal consequences for failing to put a stop to workplace discrimination. Contact an employment discrimination attorney to understand your legal rights and options.

Employer Liability for Discrimination

Workers may suffer workplace discrimination because of their age, sex, disabilities, or other characteristics. According to the U.S. Department of Labor (DOL), more than 88,000 discrimination charges were reported in 2024.

It is illegal for employers to discriminate against employees based on protected characteristics. Discrimination involves adverse employment actions in hiring, firing, or the general work environment. Discriminatory practices include all aspects of employment, including job advertisements, hiring, promotions, lay-offs, compensation, benefits, and training.

Federal discrimination laws apply to most private employers with 15 or more employees. For age discrimination, covered employers include those with 20 or more employees. Some state laws provide stronger legal protections, including coverage of smaller employers. To comply with anti-discrimination laws in your state, talk to a local employment law attorney who handles discrimination cases.

Protected Classes Under Anti-Discrimination Laws

Protections against unlawful discrimination apply to protected classes of employees, including:

• Race
• Color
• Sex, including gender identity and sexual orientation
• Pregnancy and pregnancy-related medical conditions
• Age
• Disability
• Religion
• National origin
• Genetic information

Title VII of the Civil Rights Act of 1964 identifies most of these protected classes. The Age Discrimination in Employment Act (ADEA) prohibits age discrimination and the Americans with Disabilities Act (ADA) includes protections for disabled workers. The Equal Pay Act prohibits pay discrimination based on sex. Discrimination on the basis of sex includes workplace sexual harassment claims.

Some types of employment discrimination fall under the Immigrant and Employee Rights Section (IER) of the U.S. Department of Justice (DOJ). This includes discriminating against workers based on their national origin or immigration status. Under the IER, penalties and corrective actions can include:

• Civil fines
• Hiring or reinstating employees
• Making changes to unlawful employment policies
• Requiring employee rights notices for workers
• Mandatory education for recruiting, hiring, and onboarding personnel
• Attorneys’ fees to prevailing parties

Retaliation for Discrimination Complaints

Employees have the right to report employment discrimination. Workers can also cooperate with government EEOC investigations. Employers cannot punish an employee for reporting discrimination or participating in government investigations.

Adverse employment actions, threats, or firing an employee for opposing workplace discrimination is unlawful retaliation.

Legal Consequences and Fines

There are legal and financial consequences for employers violating state and federal discrimination laws. If you file a civil lawsuit against the employer, you can seek financial damages. You can also try to get injunctive relief, like getting your job back or requiring workplace training.

If the EEOC files an employment discrimination lawsuit on your behalf, they can issue fines or civil penalties against the employer. They can also sue for damages to compensate you for discrimination. In addition to fines and legal consequences, a discrimination finding can hurt the company’s reputation.

Impact of EEOC and Regulatory Actions

The U.S. Equal Employment Opportunity Commission (EEOC) is the agency that enforces federal employment discrimination laws. The EEOC receives employment discrimination complaints, investigate claims, mediates, and enforces federal laws against employers.

The EEOC complaint process can take several routes to resolve. If the EEOC chooses not take action following its investigation, they will close the case and issue a Notice of Right to Sue. With a notice, plaintiffs can file a lawsuit in state or federal court for employment discrimination. In some states, you can file a lawsuit without waiting for a notice to sue from the EEOC.

If the EEOC finds an employment discrimination violation, the attorney general can try to resolve the case or file a lawsuit against the employer based on your complaint.

If you disagree with the EEOC’s final decision, you can request a hearing or file an appeal. Talk to an employment discrimination attorney about the appeals process.

Financial Compensation in an Employment Discrimination Lawsuit

When you file a civil action against your employer, you make a claim for damages and other legal remedies. Damages seek financial compensation for your losses, including economic and non-economic damages.

Compensatory damages in an employment discrimination case may include:

• Back pay
• Lost benefits (health insurance, pension, retirement, etc.)
• Mental distress
• Expert witness fees
• Attorney’s fees and court costs

You can also get equitable remedies to force the employer to take certain actions. Equitable remedies for a charge of discrimination include:

• Reinstatement to your job
• Change in working conditions
• Reasonable accommodations for a disability
• Promotion

In some cases, you can also seek punitive damages, which punish the employer for wrongful actions or intentional discrimination. Punitive damages aim to deter the employer from discriminating against other employees in the future. Punitive damages are not common in employment discrimination claims. The court generally won’t apply these damages if the employer makes a good-faith attempt to follow anti-discrimination practices.

Legal Help With an Employment Discrimination Claim

It is important for workers to take action when they suffer employment discrimination. An employment discrimination claim can help you get financial compensation or get your job back. It can also help protect other employers in similar circumstances.

A discrimination lawyer can review your case and explain your legal options. Your lawyer can file a complaint with the EEOC or get a notice of right to file a lawsuit in court. They can negotiate to get a fair settlement or represent you in court. For legal advice about getting damages from your employer, talk to an experienced discrimination attorney.