Tuesday, April 15, 2025

Damage caps for discrimination claims don't work


$75,000. That’s what Morton Salt just paid to settle a lawsuit brought by the EEOC.

The agency alleged that Morton Salt discriminated against a Black employee because of his race and disability—and then retaliated against him for reporting it.

The allegations are disturbing:

• A white coworker allegedly used the n-word repeatedly, including calling employees "worthless [n-words]"—something Morton knew about.

• A Black employee reported the racist behavior.

• Instead of addressing or investigating the harassment, Morton reprimanded and ultimately fired the person who spoke up.


And what did it cost them? Seventy-five grand.

Morton Salt earns $1.5 billion a year. This settlement represents 0.005% of its annual revenue. That's like a $50 speeding ticket to Jeff Bezos. That's not accountability—that's pocket change.

Title VII's damage caps are broken. They haven't been updated since 1991. For large employers, like Morton Salt, compensatory and punitive damages are capped at $300,000. Not per claim—total. And they lower based on the size of the employer:

• 501 or more employees —$300,000

• 201–500 employees —$200,000

• 101–200 employees —$100,000 

• 15–100 employees —$50,000

Ohio law isn't much better. It caps non-economic damages at the greater of $250,000, or three times the amount of economic damages up to a maximum of $350,000, and caps punitive damages for employers with fewer than 100 employees at the lesser of two times the amount of economic damages or 10% of the employer's net worth, with an absolute maximum of $350,000. (For employers with 100 employees or more the two-times economic damages cap still applies, but there is no cap based on net worth). Under both federal and Ohio law, there is no cap applied to economic damages.

As a management-side employment lawyer, it might seem like I should be rooting for these caps to stay low. After all, they help my clients limit exposure. But the truth is, low caps don't help employers build better workplaces. They instead help them dodge consequences. They send the message that discriminatory conduct is just a cost of doing business—and a cheap one at that.

If we want safer, fairer, more inclusive workplaces, we need stronger deterrents. Raising, or even eliminating, damage caps might not serve my clients' financial interests. But it would serve their employees' human interests. And ultimately, that's how you build a workplace you can be proud of.