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Article
Discounting Discrimination: Title VII's Damage Caps
Michael Selmi
Arizona State University Sandra Day O'Connor College of Law Paper No. 7351259 (August 7, 2026)
 
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Abstract:

In 1991, Congress incorporated damages into Title VII, capping those damages at a maximum of $300,000 depending on the size of the employer for combined compensatory and punitive damages. Those damage caps have not been altered or copies in other statutes in the ensuing 37 years and as a result of inflation are now worth half of what they once were, thus making discrimination today significantly cheaper than was originally intended. This is purely a product of neglect rather than a conscious decision. This Essay will argue that the damage caps cry out for reform and will further suggest that there is no reason federal employment discrimination cases should have capped damages. Rather, Title VII damages should be treated like other civil claims and be subject to existing law regarding punitive and compensatory damages. To reach this conclusion, the Essay explores the purpose behind punitive and compensatory damages, existing studies on jury verdicts and state discrimination alternatives, as well as comparisons to malpractice damages which are another area where damages are sometimes capped.
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