Senate Bill 165 – Wisconsin Fair Employment Act

By
August 28, 2007

The Wisconsin State Senate Labor Committee is hearing Senate Bill 165 on Tuesday, August 28, 2007, at 11:00 a.m. in Room 411 South of the State Capitol Building.
 
Senate Bill 165 creates unlimited compensatory and punitive damages for WFEA Claims. The bill permits the Wisconsin Department of Workforce Development (DWD) or a person who has been discriminated against in promotion, in compensation, or in the terms, conditions, or privileges of employment on the basis of the various protected classes under the Wisconsin Fair Employment Act to bring action in circuit court to recover compensatory and punitive damages caused by the act of discrimination.
 
If the circuit court finds that a defendant has committed such an act of discrimination, the circuit court must order the defendant to pay to the person discriminated against compensatory and punitive damages in an amount the circuit court finds appropriate and also to pay to the circuit court an assessment equal to 10 percent of the amount of compensatory and punitive damages ordered. Assessments collected under the bill must be credited to an appropriation account of DWD, which must use those assessments for the administration of the fair employment law.
 
WMC Position – Oppose
 
The bill allows unlimited punitive damages to be assessed in court actions against all Wisconsin employers, regardless of size, for violations of the WFEA. These remedies go significantly beyond the damages available for similar violations of Federal Title VII discrimination laws. The smallest Wisconsin employers, employing fewer than fifteen workers, who are not subject to Federal Title VII claims, are subject to the WFEA and would be subject to the punitive damage provisions of the bill.
 
The bill also creates a cumbersome process requiring employers to defend themselves both in front of the DWD in an administrative proceeding and, in addition, before the courts for a determination of punitive damages. This will be a costly and time consuming process requiring legal counsel and increased litigation costs. This legislation may also create personal legal liability for human resources professionals. WMC strongly opposes the proposed unlimited liability for punitive damages for WFEA violations. This legislation would have a strong negative impact on the Wisconsin business climate. WMC also opposes any provision in the law that creates an incentive for an agency to find discrimination.
If you have questions regarding the above, please contact any of the attorneys in the Employment, Benefits & Labor Relations Practice Group of Ruder Ware.

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