PHR practice question 12 of 25

You are a HR Professional for your organization and your supervisor is asking you about the details of the Civil Rights Act of 1991, and what it means to your company. He wants to know what the total damages could be if an organization is found liable by a jury trial. What is the maximum amount that could be awarded to a victim of discrimination if the organization is found liable?

Full set: 165 questions
Answer options
A: There is no limited amount as the jury can determine damages
B: $50,000
C: $300,000 Correct answer
D: $500,000
Correct Answer:
C. $300,000
Explanation

The Civil Rights Act of 1991 introduced the right to a jury trial and allowed for compensatory and punitive damages in cases of intentional discrimination under Title VII and the Americans with Disabilities Act. The act established statutory caps on the amount of damages that can be awarded, based on the size of the employer. The maximum possible amount is capped at $300,000 for employers with more than 500 employees. This cap applies to the sum of compensatory damages (for future pecuniary losses, emotional pain, suffering, etc.) and punitive damages. Back pay and front pay are not subject to these caps.

Why Incorrect

A. This is incorrect. The Civil Rights Act of 1991 specifically introduced statutory caps on compensatory and punitive damages to limit employer liability.
B. $50,000 is the maximum damage award for employers with 15 to 100 employees, not the overall maximum possible amount under the act.
D. $500,000 is not a statutory cap for damages under the Civil Rights Act of 1991; the highest tier is $300,000.

References

1. U.S. Equal Employment Opportunity Commission. (n.d.). Compensatory and Punitive Damages Available under Section 1981a of the Civil Rights Act of 1991. Retrieved from https://www.eeoc.gov/statutes/compensatory-and-punitive-damages-available-under-section-1981a-civil-rights-act-1991 (This official government page specifies the damage caps by employer size).

2. Civil Rights Act of 1991, Pub. L. No. 102-166, 105 Stat. 1071 (1991). Section 1977A(b)(3).

3. Twomey, D. P. (2016). Labor & Employment Law: Text & Cases (16th ed.). Cengage Learning. (Chapter 19, "Equal Employment Opportunity," section on Remedies for Violations of Title VII).

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