Compensatory damages

Definition

Compensatory damages are monetary awards given to a plaintiff to compensate for losses or injuries suffered due to the wrongful conduct of another party. In the context of employment discrimination, these damages aim to make the victim whole by covering both economic losses, such as lost wages and benefits, and non-economic losses, such as emotional distress and pain and suffering. The primary goal is to restore the individual to the position they would have been in had the discrimination not occurred.

5 Must Know Facts For Your Next Test

1. Compensatory damages are calculated based on the actual loss suffered by the plaintiff, taking into account factors like lost income, benefits, and expenses incurred due to discrimination.
2. In employment discrimination cases, the jury may award compensatory damages for emotional distress caused by the discriminatory actions of an employer.
3. There is often a limit on the amount of compensatory damages that can be awarded in employment discrimination cases, which can vary based on the size of the employer.
4. Compensatory damages are distinct from punitive damages, which are meant to punish the wrongdoer rather than simply compensate the victim.
5. The purpose of compensatory damages is not only to provide financial relief but also to serve as a deterrent against future discriminatory practices by employers.

Review Questions

• How do compensatory damages in employment discrimination cases help victims recover from their losses?
  • Compensatory damages play a crucial role in helping victims of employment discrimination recover their financial and emotional losses. They are designed to replace lost wages and benefits due to discriminatory actions while also addressing non-economic harms like emotional distress. This financial compensation helps ensure that individuals can regain their footing after experiencing discrimination, promoting accountability among employers.
• What are some factors that a court may consider when determining the amount of compensatory damages in an employment discrimination case?
  • When determining compensatory damages, courts consider several factors, including the extent of economic loss such as lost wages and benefits, any medical expenses incurred due to stress or mental health issues related to the discrimination, and evidence of emotional distress suffered by the plaintiff. Additionally, courts may take into account the severity of the discriminatory behavior and any long-term impacts on the victim’s quality of life. These factors help ensure that awards are tailored to reflect each victim's unique situation.
• Evaluate the effectiveness of compensatory damages in addressing systemic issues related to employment discrimination in workplaces.
  • While compensatory damages provide necessary relief for individual victims of employment discrimination, their effectiveness in addressing systemic issues within workplaces can be debated. They may deter some employers from engaging in discriminatory practices due to potential financial repercussions. However, without accompanying reforms or punitive measures that target systemic injustices, compensatory damages alone may not be sufficient to eradicate discriminatory behaviors or foster inclusive workplace cultures. To truly address these issues, it’s essential for employers to implement comprehensive diversity training and equitable hiring practices alongside any legal repercussions faced.

Related terms

Punitive damages: Monetary compensation awarded to a plaintiff that goes beyond compensatory damages and is intended to punish the defendant for particularly egregious behavior.

Economic damages: Financial compensation awarded for quantifiable losses, such as lost wages, medical expenses, and other costs incurred due to the wrongful act.

Non-economic damages: Compensation awarded for intangible losses, such as emotional distress, pain and suffering, and loss of enjoyment of life.