Senate Bill 165 - Wisconsin Fair Employment Act
2007-08/28 Labor & Employment Group

(WFEA) Claims: Creates Compensatory and Punitive Damages in State Court and Administration Assessment

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 that 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, like the one proposed here,

that creates an incentive for an agency to find discrimination.  The administrative assessment in this proposal will have that affect.

Action Requested.

Please contact your Wisconsin State Senator and ask them to oppose Senate Bill 165.  You can contact your Senator now by visiting WMC's " SPEAK OUT! Current Legislative Alerts" http://www.wmc.org/governmentaffairs/display.cfm?ID=124.  Click on "SB 165 - WFEA Claims" and follow the prompts.  We have provided talking points to help you in your communications.

Please direct your questions regarding the content of this alert to any of the attorneys within the Employment, Labor & Benefits Practice Group:  Ron Rutlin, Dean Dietrich, Jeff Jones, Mary Ellen Schill, Chris Toner, or Sara Ackermann.

© 2007 Ruder Ware, L.L.S.C. Accurate reproduction with acknowledgment granted. All rights reserved.
This document provides information of a general nature regarding legislative or other legal developments. None of the information contained herein is intended as legal advice or opinion relative to specific matters, facts, situations, or issues, and additional facts and information or future developments may affect the subjects addressed.