Employment Discrimination Bill Passes Legislature

Early this morning the State Assembly passed Senate Bill 20, authorizing courts to punish businesses engaged in employment discrimination with punitive and compensatory damages of up to $300,000, depending on the size of the employer.

As far as we can tell, the bill does not change existing discrimination laws and protected classes but significantly expands the amount of money businesses could be entitled to pay in an employment discrimination lawsuit.

Interestingly, the author originally exempted the state from the provisions of the bill but eventually compromised a little–exempting local government and businesses employing fewer than 15 people but not the state.  (A pretty tacit recognition of the fiscal burden this bill puts on businesses.  They’re ready to hurt businesses but not government.  Otherwise, wouldn’t local government and small business-employees be entitled to punitive damages, like their state and big business-employee counterparts?)

Christian businesses, camps, churches and schools are subject to the punitive damages provision as well–for any employee that does not meet the “ministerial exception” of Jocz v. LIRC.

In a time when we expect our state legislature to focus on building employment by creating a favorable business climate in the state, instead they impose yet another handicap on business.  Ultimately, however, SB20 hurts the people who will lose potential jobs because of a bad business climate or because their employer is sued out of business.

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