PHR · Question #173
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…
The correct answer is C. $300,000. The Civil Rights Act of 1991 caps compensatory and punitive damages on a sliding scale based on employer size, with $300,000 as the absolute maximum for organizations with more than 500 employees.
Question
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?
Options
- AThere is no limited amount as the jury can determine damages
- B$50,000
- C$300,000
- D$500,000
How the community answered
(28 responses)- A4% (1)
- B11% (3)
- C82% (23)
- D4% (1)
Why each option
The Civil Rights Act of 1991 caps compensatory and punitive damages on a sliding scale based on employer size, with $300,000 as the absolute maximum for organizations with more than 500 employees.
The Act explicitly limits jury discretion by imposing statutory damage caps, so unlimited awards are not permitted under this law.
$50,000 is only the cap for smaller employers in the 15-100 employee range, not the maximum possible amount.
The Civil Rights Act of 1991 amended Title VII to allow compensatory and punitive damages for intentional discrimination, but set statutory caps by employer size. The scale runs from $50,000 for employers with 15-100 employees up to $300,000 for employers with more than 500 employees. The $300,000 figure is the highest cap the statute permits regardless of jury determination.
$500,000 exceeds the statutory ceiling; no employer size category under the Act reaches that amount.
Concept tested: Civil Rights Act of 1991 compensatory damage caps
Source: https://www.eeoc.gov/statutes/civil-rights-act-1991
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