Courts Clarify Damages Caps Under Federal Employment Discrimination Statutes

As originally enacted, Title VII of the Civil Rights Act of 1964, which prohibits employment discrimination based on gender, religion, national origin, race, and color, allowed plaintiffs to recover only for lost wages (i.e., back pay and front pay) starting two years before the date the plaintiff filed a charge with the EEOC. However, plaintiffs have been able to recover much more since 1991. Specifically, a 1991 amendment to the Civil Rights Act expanded the scope of damages recoverable under Title VII and other employment discrimination statutes (such as the Americans with Disabilities Act (“ADA”) and, now, the Genetic Information Nondiscrimination Act of 2008 (“GINA”)) if a plaintiff proves intentional discrimination. A successful plaintiff may now recover compensatory damages, such as emotional distress, and punitive damages. Although a plaintiff may now recover more than just lost wages, the good news is that the total amount of compensatory and punitive damages awardable is limited by statutory limits or “caps,” which depend on the number of individuals employed by the company that was found liable for unlawful discrimination.

Title VII does not apply to employers that employ less than 15 employees, and the limit on damages that may be awarded against companies that employ at least 15 but no more than 100 employees is $50,000. The cap increases to $100,000 for companies that employ at least 101 employees but no more than 200 employees. Companies that employ at least 201 but no more than 500 employees cannot be liable for more than $200,000 in damages, and companies with 501 or more employees cannot be liable for more than $300,000 in damages.