Getting fired from your job is almost always a stressful experience, no matter your employer’s reason. However, getting dismissed for an illegal cause, also known as wrongful termination, adds another layer of complexity to the situation.
If you feel you were wrongfully terminated, you’re not alone and you may be eligible for compensation. According to the Equal Employment Opportunity Commission (EEOC), 25 cases involving wrongful discharge in fiscal year (FY) 2024 were decided in favor of the former employee, and their previous employer had to pay up. [1]
However, wrongful termination settlements can take a long time to process, potentially leaving you in a challenging financial position. Pre-settlement funding could help you make ends meet while you wait for your day in court.
If you’re in the middle of navigating a wrongful termination lawsuit and need financial support, applying for pre-settlement funding could be the first step towards finding relief.
Key Takeaways
- If your employer broke labor laws or violated internal termination policies when they fired you, you may have grounds for a wrongful termination lawsuit.
- More than 90% of cases are settled outside of court.[7]
- Your settlement amount will depend on several factors, such as your salary, the level of emotional distress you endured, whether your former employer acted maliciously, and other case details.
- Wrongful termination lawsuits could take years to resolve, putting your life on hold indefinitely.[5]
- Pre-settlement funding is a risk-free way to secure the cash you need to pay your bills until you receive a settlement or your case goes to trial.
What Constitutes a Wrongful Termination?
Wrongful termination occurs when someone gets fired for an illegal reason, such as employment discrimination. Examples of wrongful termination include, but aren’t limited to:[2,3]
- Firing a high-performing field technician because they are getting older and the role is physically demanding (age discrimination).
- Firing a cashier with a leg deformity because they can’t stand at the register for long periods of time, instead of providing them with a stool or making another reasonable accommodation (disability discrimination).
- Firing any worker because they are a certain race or sex, are pregnant, practice a different religion, or hail from a different country.
- Firing any worker for reporting harassment, discrimination, safety violations, or illegal activity. (This is referred to as retaliation).
A company may be guilty of wrongful termination if it fires a worker outside of its normal practices. For instance, if workers generally receive a verbal warning, a written warning, and a final warning before termination for a certain infraction, and the company fires an employee without going through those steps for that violation, the terminated employee may have a case.
What’s the Average Settlement Amount for Wrongful Termination?
Factors That Determine Settlement Amount
The amount you may receive will depend on the specific details of your case. Factors that can influence your payout include, but aren’t limited to:[4]
- Your salary. A higher salary could mean a higher settlement.
- The strength of your case. If you have a lot of convincing evidence, you may receive more compensation.
- The severity of your former employer’s actions. If the company acted with malice, you may be entitled to punitive damages, increasing your settlement.
- How long the case drags on. If you’re entitled to back pay (which starts from the date of termination), your compensation amount will keep growing until there’s a resolution.
- Your ability to secure new employment. If you earn income while the case is ongoing, your payout could get reduced by the amount you make. On the other hand, if you’re unable to get another comparable job, you may be entitled to front pay, which compensates you for a set period going forward.
- The amount of stress you endured. If you can demonstrate that the firing had a significant impact on your mental health, you may be eligible for a higher settlement.
- Legal limits to compensation. Federal law caps how much you can receive for emotional distress and punitive damages.
Your lawyer can advise you on how much you can expect to receive in a settlement deal.
Filing a Wrongful Termination Lawsuit
Filing a wrongful termination lawsuit generally follows the steps below. [5]
- Consult with and hire a lawyer who specializes in employment law. They can guide you through the entire process, tell you what to expect, and advocate on your behalf.
- File an administrative complaint with the EEOC (and your state’s government agency, if desired). Your attorney will help you with this step.
- Wait for the EEOC to try to resolve the issue outside of the court system. If they’re unable to do so, the agency will issue you a “notice of right to sue in court,” permitting you to file an actual lawsuit. Note: Some states don’t require EEOC approval to file suit. Ask your lawyer.
- File the lawsuit (your attorney will do this) and go through the discovery process. During the discovery process, both parties will gather evidence, such as relevant documents, correspondence, and witness statements.
- Attempt to negotiate a wrongful termination settlement (through your lawyer). Your lawyer will try to get you the best deal possible.
- Go to trial (if negotiation attempts are unsuccessful). Typically, a jury will hear your case, and a judge will tell you how much compensation you’ll receive (if you win).
If you’re confused at any point during the process, tell your lawyer. They are there to help make a complicated situation as easy as possible.
When a Wrongful Termination Lawsuit Loan Might Be Worth It
You just got fired from your job. Suddenly, the income stream that your family depends on has been shut off.
Unfortunately, the bills keep coming in. You don’t have much money in your savings account, and you don’t have access to a lot of new credit, especially now that you’re unemployed.
You’re not sure how you’re going to keep a roof over your head and food on the table. Your lawyer said your case could take a long time to resolve, but you need money now.
If this sounds like your situation, you may be a good candidate for pre-settlement funding, also known as a lawsuit loan. Pre-settlement funding is a cash advance of your expected settlement, helping you bridge the financial gap. You could have money in hand in as little as 24 business hours.*
Who Qualifies for Wrongful Termination Pre-Settlement Funding?
You may be eligible for pre-settlement funding if you meet the following criteria:
- You’re working with a lawyer on a contingency basis (they don’t get paid unless you win your case).[6]
- You have an active personal injury claim.
- You have a strong case, and there is a lot of evidence to prove that your former employer is liable for damages.
USClaims doesn’t consider your credit score when evaluating your application for funding. We’re primarily concerned with the parameters above.
Wrongful Termination Pre-Settlement Funding Process
If you’re interested in securing pre-settlement funding after being wrongfully terminated, here’s what you need to do:
- Hire an attorney on a contingency basis. Your lawyer will help you navigate the court system, file appropriate paperwork at the right time, gather evidence, and negotiate a fair compensation amount.
- File a claim with the EEOC or your state’s government agency. Your lawyer will walk you through this step.
- Work with your attorney to apply for pre-settlement funding. Your lawyer will work closely with USClaims during this step.
- Get your money in as little as 24 business hours (if approved).* Use the funds while you wait for your wrongful termination settlement.
- Hear the outcome of your case. If you win, you’ll repay us in one lump sum. If you lose, you owe us nothing.
If you have questions about pre-settlement funding, don’t hesitate to contact us at any time.
Benefits of Wrongful Termination Lawsuit Loans
There are many benefits to obtaining a wrongful termination lawsuit loan. Here are the most notable perks:
Avoid Falling Deeper into Debt
When you don’t have money coming in, your creditors must wait to get paid. When you make them wait for too long, your credit score could suffer, and you may face legal consequences.
Fortunately, getting pre-settlement funding can help you avoid that stressful situation. Depending on the details of your case, you could receive anywhere from $500 to $1,000,000 in advance of your settlement deal being finalized, keeping your credit score safe.
Wait for a Better Settlement
If you’re stressed about money, you may be tempted to accept the first settlement offer your former employer makes just to put some cash in your pocket. However, doing so could be a costly mistake as the first offer may not be the best offer.
When you have money from a lawsuit loan sitting in your bank account, you’re empowered to wait for a deal that adequately compensates you for the wrongdoing you endured.
Don’t Repay if You Lose Your Case
Pre-settlement funding is a nonrecourse loan, so it’s risk-free to obtain. If you don’t receive a wrongful termination settlement, you don’t have to repay us.
Use the Money However You Need
We don’t dictate how you spend your pre-settlement funding. As soon as the cash hits your bank account, it’s yours to use as you please. However, many plaintiffs use their lawsuit loans to cover expenses like:
- Mortgage or rent
- Water, sewer, electric, gas, phone, cable, and internet bills
- Car payments
- Credit card bills
- Insurance premiums
- Groceries
- Gas for your car
- Medicine
- Pet supplies
- Household supplies
And you never have to worry about proving how you used the money. We won’t ask for receipts.
No Monthly Payments
A lawsuit loan isn’t a traditional loan, so you won’t need to repay us in monthly installments. Instead, if you win your case, your lawyer will send us a portion of your settlement as a lump sum.
See How Wrongful Termination Lawsuit Loans Have Helped People Like You
with USC in the past. USC does not control the content of such reviews.
Where USClaims Provides Funding
The list of states where we provide funding is long: 45 out of 50, to be exact. Unfortunately, due to state laws, we’re unable to help plaintiffs in Arkansas, Kentucky, Maryland, Montana, West Virginia, and Washington, D.C.
USClaims Is a Trusted Pre-Settlement Funding Provider for Wrongful Termination Lawsuits
Getting wrongfully terminated and enduring a drawn-out legal battle because of it makes for a challenging chapter of life. We’re here to make things a little easier and give you some financial breathing room while you navigate your case.
Ask your lawyer if a lawsuit loan could be right for you. When you’re ready, apply now or call us today at 1-877-USCLAIMS to learn more.
Wrongful Termination Settlement Funding FAQs
What are the odds of winning a wrongful termination lawsuit?
What is the average settlement for wrongful termination?
Is a wrongful termination settlement taxable?
How long does a wrongful termination settlement take?
Sources
- U.S. Equal Employment Opportunity Commission. “Enforcement and Litigation Statistics.” https://www.eeoc.gov/data/enforcement-and-litigation-statistics-0
- Usa.gov. “Wrongful termination.” https://www.usa.gov/wrongful-termination
- Law Offices of Jeremy Pasternak. “Examples of Wrongful Termination.” 26 Oct. 2025. https://pasternaklaw.com/examples-of-wrongful-termination/
- Legal Clarity. “How Much Can You Get From a Wrongful Termination Lawsuit?” 24 July 2025. https://legalclarity.org/how-much-can-you-get-from-a-wrongful-termination-lawsuit/
- Devendorf, Esq., John. Super Lawyers. “The Wrongful Termination Lawsuit Process: A Step-By-Step Guide.” 16 Oct. 2025. https://www.superlawyers.com/resources/wrongful-termination/the-wrongful-termination-lawsuit-process-a-step-by-step-guide/
- Peck, Spencer. Peck Law Corp. “Lawyers That Work on Contingency: What Does it Mean for You?” https://www.pecklawcorp.com/blog/hiring-lawyers-that-work-on-contingency
- Whitehead, Taylor. The Mundaca Law Firm. “How Often Are Wrongful Termination Cases Won?” 05 Mar. 2025. https://mundacalaw.com/how-often-are-wrongful-termination-cases-won/
- Legal Clarity. “Is a Wrongful Termination Settlement Taxable?” 17 Aug. 2025. https://legalclarity.org/is-a-wrongful-termination-settlement-taxable/
*Funding subject to approval. We typically fund within 24 business-day hours after we receive a fully-executed contract. Additional restrictions may apply. Contact for details.
**2X CAP may not be applicable for all types of cases and/or jurisdictions.
Disclaimer: Throughout this website, the term “loan” may be used for convenience to describe pre-settlement funding. However, such transactions are not loans in the legal sense. Repayment is strictly contingent upon the successful resolution of your case. If your case is unsuccessful, no repayment is required. Common terms like “lawsuit loan” are used colloquially but misrepresent the nonrecourse nature of pre-settlement funding.
