Protect Working People Harmed by Employment Discrimination.

End Congress’ Unfair Limits on Who Gets Justice 

The Problem:

Workers who win employment discrimination cases cannot receive a jury’s full award for the harm they suffer because of an outdated and unfair provision in a 1991 law that caps such damage awards. Victims continue to suffer while their employer continues business as usual, undeterred.

The Solution:

Congress should pass the “Equal Remedies Act of 2024” and eliminate the statutory damages caps in cases of intentional employment discrimination. The “Equal Remedies Act of 2024” would also modernize the Age Discrimination in Employment Act (ADEA) to allow age discrimination victims the opportunity to argue to receive compensatory and punitive damages,  like other victims of discrimination.  

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Damage Caps in Employment Discrimination Cases

Under Title VII of the Civil Rights Act of 1964, an employer may not discriminate against someone with respect to hiring, firing, compensation, or other terms of employment, or segregate/categorize based on race, color, religion, gender, or national origin.  

The Americans with Disabilities Act similarly protects workers with disabilities and requires employers (with limited exceptions) to provide reasonable accommodations to workers who have an impairment that substantially limits a major life activity.  The law also protects workers’ privacy interests against intrusive inquiry by employers about their medical concerns.

When a jury finds that an employer violated the employment anti-discrimination law, and determines punitive and compensatory damages, the statute limits how much the court can award the worker.  

The current limits — unchanged since 1991 — 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.

History

After several United States Supreme Court decisions weakened employment discrimination protections under Title VII, Congress passed civil rights legislation to reverse the Court and make it easier for plaintiffs to vindicate their rights in discrimination cases. President George H.W. Bush vetoed the 1990 bill.  Later, in a compromise with civil rights leaders and business interests, Congress and President Bush enacted a law to allow for compensatory and punitive damages in discrimination cases, but included damages caps in the final version of the Civil Rights Act of 1991, strengthening civil rights protections but curtailing the ability of harmed employees to recover the full amount of their damages.  

Senator Ted Kennedy introduced the Equal Remedies Act of 2007 to eliminate Title VII and ADA damage caps (co-sponsors included Sens. Patty Murray, Maria Cantwell, Hillary Clinton, and Barack Obama). However, since that time Congress has not addressed the harms caused by damage caps.

Harms Caused by Caps

Often, juries will award plaintiffs damages well above the statutory caps for victims of discrimination. However, a judge then must reduce that award — in many cases by more than 90%! Companies know this and recognize discrimination as a cost of doing business.

What’s worse is that inflation has risen by 124% since 1991. Caps have not, however. Every year the Equal Remedies Act is not passed, the spending power of jury awards becomes less and less; exacerbating these worker harms. 

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