On June 4, 2001 the Supreme Court issued a decision of significant consequence for  employers.  In this case the Court affirmatively established that the $300,000.00 damages cap in civil rights cases does not apply to front pay awards.  This decision means that employers may be subject to much larger damages in employment discrimination cases. 

Employment discrimination law allows a court to reinstate an employee that has suffered discrimination.  Front pay compensates the employee for the time between the date of the court’s decision and reinstatement.  However, in many cases an employee cannot be returned to his or her old position.  In such instances, the court calculates a front pay award to include an additional amount in lieu of reinstatement. 

In Pollard vs. DuPont 121 S. Ct. 1946 (2001), Sharon Pollard brought an action against her employer alleging that she had been subjected to a hostile work environment based on her sex.  The Court determined that Ms. Pollard had been subjected to harassment by her co-worker, that her supervisors knew of the harassment, and that her discharge had resulted from her refusal to return to the hostile work environment.  The Court awarded damages that included $300,000.00 compensatory damages.  This compensatory damage award included front pay damages.  The trial court indicated that it wanted to award more front pay damages, but that the damage cap of the 1991 Civil Rights Act precluded compensatory damages greater than $300,000.00.

The Supreme Court reviewed the damage provisions of the Civil Rights Act of 1991 in its consideration of Pollard.  It concluded that Congress intended that victims of employment discrimination be entitled to additional damages beyond compensatory damages in order to deter unlawful harassment and intentional discrimination in the work place.  Finding that the Civil Rights Act did not define whether Congress intended compensatory damages to include future damages, it unanimously held that front pay was an additional remedy necessary to make an employee whole.  Accordingly, front pay is no longer subject to the $300,000.00 compensatory damage cap, and employees may be entitled to additional damages based upon the trial court’s estimation of the value of reinstatement.  This decision opens the door for an excessive damage award in those cases where reinstatement is not viable.