News Notes: Supreme Court Raises Hurdle For Job Bias Punitive Damages

The U.S. Supreme Court has made it harder for employees to win punitive damages under federal anti-discrimination laws. The case involved a suit by a female attorney who claimed she was denied a promotion because of her sex. The court agreed with the employee that punitive damages are available when an employer acts with “reckless indifference” to workers’ rights. More important, it also ruled that employers can avoid punitive damages when they make good faith efforts to comply with the law and that only a supervisor is to blame for the misconduct. The decision confirms that strong anti-discrimination policies and prompt investigations into bias claims could limit your liability if you are sued.