Key points
- Under federal law, the combined total of compensatory and punitive damages in a Title VII case is capped per person at $50,000, $100,000, $200,000 or $300,000, depending on the employer's number of employees.[1]
- The federal cap does not cover back pay, interest on back pay or front pay.[2][3]
- The same federal caps apply to ADA employment claims.[4][5]
- The federal cap statute says it does not limit the relief available under 42 U.S.C. § 1981.[6]
- The New York State Human Rights Law states no dollar limit on compensatory damages, and the court-action section of the New York City Human Rights Law sets no dollar cap and does not scale damages to employer size.[7][8]
Federal law caps the combined total of compensatory and punitive damages in a Title VII or ADA employment case at $50,000, $100,000, $200,000 or $300,000 per person, depending on how many employees the employer has.[1][4][5] Those caps are part of the federal damages statute; the New York State Human Rights Law (NYSHRL) states no dollar limit on compensatory damages, and the court-action section of the New York City Human Rights Law (NYCHRL) sets no dollar cap.[7][8]
A cap is the most the law allows in one category of damages. It says nothing about what a particular claim will produce, and the absence of a cap does not mean a large award. Under New York State law, a court reviewing a Division of Human Rights mental-anguish award asks whether it was supported by the evidence and how it compared with other awards for similar injuries.[9]
Where do the federal caps come from?
Since the Civil Rights Act of 1991, a federal Title VII plaintiff who proves unlawful intentional discrimination may recover compensatory and punitive damages in addition to equitable relief such as back pay.[10] The same section of the United States Code, 42 U.S.C. § 1981a, sets the limits on those damages.[1] Before reaching damages, a Title VII court may enjoin the practice and order reinstatement or hiring, with or without back pay.[11]
The damages provision applies only to intentional discrimination. It does not apply to an employment practice that is unlawful only because of its disparate impact.[10] It reaches violations of sections 703, 704 and 717 of the Civil Rights Act; section 704(a) is the federal ban on retaliating against a person who opposed a practice Title VII makes unlawful or took part in a Title VII proceeding.[10][12]
What are the four cap tiers?
The federal cap depends on the number of employees the employer has "in each of 20 or more calendar weeks in the current or preceding calendar year."[1]
| Employer's number of employees | Federal cap on compensatory plus punitive damages, per person |
|---|---|
| 15 to 100 (more than 14 and fewer than 101) | $50,000[1] |
| 101 to 200 | $100,000[1] |
| 201 to 500 | $200,000[1] |
| More than 500 | $300,000[1] |
The federal limit applies "for each complaining party."[2] The lowest tier starts where federal coverage starts: Title VII covers an employer only if it has 15 or more employees, and the ADA's employment title has the same threshold.[13][14]
What counts toward the federal cap?
Under the federal statute, the cap applies to the sum of two things: punitive damages, and compensatory damages for future pecuniary losses, emotional pain, suffering, inconvenience, mental anguish, loss of enjoyment of life and other nonpecuniary losses.[2] The two are added together, so there is one federal ceiling for both and not a separate ceiling for each.[2]
That means a federal award for emotional distress and a federal punitive award draw on the same limited amount. The guides to emotional distress damages and punitive damages explain each category and the separate standards for each under federal, State and City law.
What is outside the federal cap?
- Back pay and interest on back pay. The federal statute says compensatory damages "shall not include backpay, interest on backpay, or any other type of relief authorized under section 706(g)" of the Civil Rights Act.[2]
- Front pay. In 2001 the Supreme Court held that front pay is not an element of compensatory damages under the federal statute and that the cap does not apply to it.[3]
- Attorney's fees. Under federal Title VII, a fee award comes from a different provision: the court, in its discretion, may allow the prevailing party a reasonable attorney's fee, including expert fees, as part of the costs.[15]
Federal back pay has its own limits. Under Title VII it cannot accrue from a date more than two years before the EEOC charge was filed, and it is reduced by interim earnings or amounts earnable with reasonable diligence.[11] See back pay, front pay and reinstatement.
Do the caps apply to disability claims under the ADA?
Yes. The ADA's employment title borrows Title VII's remedies and procedures, and compensatory and punitive damages for ADA violations come from the same federal damages statute, subject to its caps.[4][5] One more federal limit applies to accommodation cases: compensatory and punitive damages may not be awarded where the employer demonstrates good-faith efforts, in consultation with the person who said an accommodation was needed, to identify and make a reasonable accommodation.[16] The guide to the interactive process and cooperative dialogue covers that exchange.
Other federal limits that sit alongside the cap
- Federal punitive damages require proof that the employer acted with malice or with reckless indifference to the person's federally protected rights.[17]
- Federal punitive damages cannot be recovered against a government, government agency or political subdivision.[17]
- When a federal plaintiff seeks compensatory or punitive damages, any party may demand a jury, and the court shall not inform the jury of the caps.[18]
Why the caps do not reach a § 1981 race claim
Section 1981 is a separate federal law that gives all persons the same right to make and enforce contracts as is enjoyed by white citizens, and it covers the terms and conditions of employment.[19][20] The federal cap statute limits damages "awarded under this section" and states that nothing in it limits the scope of, or the relief available under, § 1981.[6] The cap statute also makes Title VII damages available only if the person cannot recover under § 1981.[10] The Supreme Court has described § 1981 relief as equitable and legal relief, including compensatory and, under certain circumstances, punitive damages.[21]
Section 1981 has its own boundaries. Its text is about race, a plaintiff must prove that race was the but-for cause of the loss, and in the Second Circuit it gives no separate right of action against state or local government employers.[19][22][23] It has no employee-count threshold and requires no EEOC charge.[24][25] More on § 1981 is in the guide to hostile work environment based on race and other characteristics.
Why New York State and City claims are not subject to the federal caps
The caps are a federal rule about damages awarded under the federal damages statute.[6] State and City claims rest on their own statutes, and each has its own remedies section.
| Question | Federal: Title VII and ADA | New York State Human Rights Law | New York City Human Rights Law |
|---|---|---|---|
| Dollar cap on compensatory damages? | Yes, combined with punitive damages: $50,000 to $300,000 per person.[1] | The statute states no dollar limit on compensatory damages.[7] | The court-action section sets no dollar cap.[8] |
| Dollar cap on punitive damages? | Yes, inside the same combined cap.[2] | The statute sets no dollar cap on punitive damages in employment cases, which are available against private employers only.[26][27] | The court-action section sets no dollar cap on punitive damages.[8] |
| Does the limit change with employer size? | Yes, in four tiers.[1] | The law covers all employers within the state; the statute states no dollar limit on compensatory damages.[28][7] | The court-action section does not scale damages to employer size.[8] |
| Minimum employer size for the law to apply | 15 or more employees.[13][14] | None.[28] | For most employment provisions, four or more persons during the relevant period.[29] |
One set of facts can be pleaded under all three layers, and the federal cap limits damages awarded under the federal damages statute.[6] This page does not address how a single award is allocated among federal, State and City claims. The overview of the three layers of workplace law explains how the layers apply together.
What limits do the State and City laws have?
No cap is not the same as no limit. Under the New York State Human Rights Law, punitive damages are available only against private employers and only for claims accruing on or after October 11, 2019.[26][27] Under the City law, punitive damages require conduct that amounts to willful or wanton negligence, recklessness, or a conscious disregard of the rights of others.[30]
Awards are also reviewed. For a State Division of Human Rights mental-anguish award, the Court of Appeals directs a reviewing court to determine whether the relief was reasonably related to the wrongdoing, whether it was supported by evidence, and how it compared with other awards for similar injuries.[9] The same State-law decision requires some evidence of the magnitude of the injury.[31]
The dollar ceilings that do appear in the State and City statutes are for civil fines and penalties, which are paid to the State or to the City's general fund and not to the person who complained.[32][33][34] The ten-thousand-dollar figure in the State statute is a limit on punitive damages in housing discrimination cases, not employment cases.[26]
What people commonly get wrong
- "Employment damages are capped at $300,000." That is the top federal tier only, for employers with more than 500 employees.[1]
- "The cap covers lost pay." Federal back pay, interest on back pay and front pay are outside it.[2][3]
- "The cap applies to any discrimination claim filed in New York." It is a limit under the federal damages statute; the State statute states no dollar limit on compensatory damages and the City court-action section sets no cap.[6][7][8]
- "A small employer cannot be sued for much." The federal tiers are tied to size, but the State law covers all employers and the City court-action section does not scale damages to employer size.[1][28][8] See harassment and discrimination at small businesses.
For the full side-by-side list of remedies, go to damages in a New York employment case; for federal coverage and procedure, see Title VII in New York.
Common questions
What is the most a court can award under Title VII?
Federal law limits only part of a Title VII award. The sum of punitive damages and compensatory damages for future pecuniary losses and nonpecuniary harm such as emotional pain is capped at $50,000 to $300,000 per person by employer size.[1][2] Back pay, interest on back pay and front pay are outside the cap.[2][3] A cap is a ceiling on that category, not a description of what any case produces.
Does the $300,000 cap apply to every employer?
No. Under the federal statute, $300,000 is the limit only for an employer with more than 500 employees. The limit is $200,000 for 201 to 500 employees, $100,000 for 101 to 200, and $50,000 for 15 to 100.[1] An employer with fewer than 15 employees is not covered by Title VII at all.[13]
Do the federal caps limit a claim under the New York State or City Human Rights Law?
The caps are written into the federal damages statute and limit damages awarded under that statute.[6] The New York State Human Rights Law states no dollar limit on compensatory damages and no cap on punitive damages in employment cases.[7][26] The New York City Human Rights Law's court-action section sets no dollar cap on compensatory or punitive damages.[8]
Is the jury told about the cap?
No. Under the federal statute, when a Title VII or ADA plaintiff seeks compensatory or punitive damages, any party may demand a jury trial, and the court shall not inform the jury of the caps.[18] The limit is a rule the federal statute places on the sum of those two kinds of damages for each complaining party.[2]
Are there any dollar ceilings under New York State or City law?
Yes, on civil fines and penalties, which go to the government. Under the State law the Division of Human Rights may assess up to $50,000, or up to $100,000 for a willful, wanton or malicious act, paid to the State.[32] Under the City law the NYC Commission on Human Rights may impose up to $125,000, or up to $250,000 for a willful, wanton or malicious act, paid into the City's general fund.[33][34]
Sources
- 42 U.S.C. § 1981a(b)(3)(A)–(D) — Legal Information Institute, Cornell Law School
- 42 U.S.C. § 1981a(b)(2)–(3) — Legal Information Institute, Cornell Law School
- Pollard v. E. I. du Pont de Nemours & Co., 532 U.S. 843, 848 (2001) — Library of Congress, United States Reports
- 42 U.S.C. §§ 12117(a), 1981a(a)(2), (b)(1) — Legal Information Institute, Cornell Law School
- 42 U.S.C. § 1981a(a)(2) — Legal Information Institute, Cornell Law School
- 42 U.S.C. § 1981a(a)(1), (b)(4) — Legal Information Institute, Cornell Law School
- N.Y. Exec. Law § 297(4)(c)(iii) — New York State Senate, Laws of New York
- N.Y.C. Admin. Code § 8-502(a). — New York City Commission on Human Rights
- Matter of New York City Tr. Auth. v. State Div. of Human Rights, 78 N.Y.2d 207, 218-219 (1991) — CourtListener, Free Law Project
- 42 U.S.C. § 1981a(a)(1) — Legal Information Institute, Cornell Law School
- 42 U.S.C. § 2000e-5(g)(1) — Legal Information Institute, Cornell Law School
- 42 U.S.C. § 2000e-3(a) — Legal Information Institute, Cornell Law School
- 42 U.S.C. § 2000e(b) — Legal Information Institute, Cornell Law School
- 42 U.S.C. § 12111(5)(A) — Legal Information Institute, Cornell Law School
- 42 U.S.C. § 2000e-5(k) — Legal Information Institute, Cornell Law School
- 42 U.S.C. § 1981a(a)(3) — Legal Information Institute, Cornell Law School
- 42 U.S.C. § 1981a(b)(1) — Legal Information Institute, Cornell Law School
- 42 U.S.C. § 1981a(c) — Legal Information Institute, Cornell Law School
- 42 U.S.C. § 1981(a)–(b) — Legal Information Institute, Cornell Law School
- 42 U.S.C. § 1981(c); Patterson v. County of Oneida, 375 F.3d 206, 224 (2d Cir. 2004) — Legal Information Institute, Cornell Law School
- Johnson v. Railway Express Agency, Inc., 421 U.S. 454, 460 (1975) — Library of Congress, United States Reports
- Comcast Corp. v. National Association of African American-Owned Media, 589 U.S. 327 (2020) — Legal Information Institute, Cornell Law School
- Duplan v. City of New York, 888 F.3d 612, 621 (2d Cir. 2018) — static.case.law
- 42 U.S.C. § 1981; Johnson v. Railway Express Agency, Inc., 421 U.S. 454, 460 (1975) — Legal Information Institute, Cornell Law School
- Johnson v. Railway Express Agency, Inc., 421 U.S. 454, 460–61 (1975) — Library of Congress, United States Reports
- N.Y. Exec. Law § 297(4)(c)(iv), (9); L. 2019, ch. 160, §§ 5, 16(b), (d) — New York State Senate, Laws of New York
- N.Y. Exec. Law §§ 292(38), 297(4)(c)(iv), 297(9) — New York State Senate, Laws of New York
- N.Y. Exec. Law § 292(5) — New York State Senate, Laws of New York
- N.Y.C. Admin. Code § 8-102 ("Employer"). — New York City Commission on Human Rights
- Chauca v. Abraham, 30 N.Y.3d 325, 329, 333-334 (2017). — New York State Unified Court System
- Matter of New York City Tr. Auth. v. State Div. of Human Rights, 78 N.Y.2d 207, 217-218 (1991) — CourtListener, Free Law Project
- N.Y. Exec. Law § 297(4)(c)(vi) — New York State Senate, Laws of New York
- N.Y.C. Admin. Code § 8-126(a). — New York City Commission on Human Rights
- N.Y.C. Admin. Code § 8-127(a). — New York City Commission on Human Rights