Labor E-Bulletin - Bad News: New Ohio Tort Reform Law Not Much Help for Ohio Employers; Good News: House Bill 300, if Enacted, Will Greatly Benefit Ohio Employers
January 24, 2005
The new Tort Reform bill, signed by Governor Taft this month, places limits on punitive damages and non-economic damages (also known as compensatory damages for pain and suffering), which a plaintiff may recover in a tort lawsuit. However, the new law apparently does not apply to punitive or non-economic damages recovered under Ohio’s statute prohibiting race, color, religion, sex, national origin, disability, age or ancestry employment discrimination. The new law would apply to employers who are sued by employees or former employees for common law torts such as libel, slander, invasion of privacy or infliction of emotional distress. However, except for emotional distress, those types of lawsuits are not often filed against employers and it is very difficult for plaintiffs to prove an emotional distress tort.
In contrast, numerous lawsuits are filed in Ohio, alleging employers have unlawfully discriminated against employees and former employers under Ohio’s statute prohibiting employment discrimination. Presently, employees and former employees may recover damages directly from individual supervisors and managers, as well as employers. The amount of punitive or non-economic damages is not limited by Ohio law.
In the last session of the Ohio House of Representatives, House Bill 300 was introduced, but not passed. It is expected to be re-introduced with a new number in the next session of the House. The Bill would, if enacted, greatly benefit Ohio employers, as well as their managers and supervisors. It would make Ohio law more consistent with many federal employment discrimination laws. It would also reverse past decisions of the Ohio Supreme Court that have been against the best interests of Ohio employers.
First, the bill would prohibit any recovery against any supervisor or manager unless that supervisor or manager is the employer. In other words, only employers would be liable for unlawful employment discrimination, which is the current federal law.
Second, the amount of compensatory damages for future pecuniary losses, emotional pain, suffering, inconvenience, mental anguish, loss of enjoyment of life and other non-pecuniary losses and the amount of punitive damages awarded to each employee or former employee because of unlawful employment discrimination would not exceed the following: (1) $50,000.00 for an employer with fewer than 100 employees in each of 20 or more calendar weeks in the current or preceding calendar year; (2) $100,000.00 for an employer with more than 100 and fewer than 200 employees in each of 20 or more calendar weeks in the current or preceding calendar year; (3) $200,000.00 for an employer with more than 200 and fewer than 500 employees in each of 20 or more calendar weeks in the current or preceding calendar year; (4) $300,000.00 for an employer with more than 500 employees in each of 20 or more calendar weeks in the current or preceding calendar year. Most employers would still be liable for back pay, including lost benefits, if found liable for unlawful employment discrimination.
Finally, House Bill 300 reduces the statute of limitations for bringing employment discrimination lawsuits under Ohio law from as long as 6 years in some cases to 300 days after the alleged unlawful discrimination occurred. Under federal law, employment discrimination claims must be filed within 300 days with the Equal Employment Opportunity Commission.
House Bill 300, if enacted, should make Ohio employers more competitive by making Ohio’s employment discrimination law more similar to federal law and those laws in high job growth states.
We encourage all employers who support the proposed change in Ohio law to take action to support its enactment. We will be keeping in close touch with the legislative process and would be delighted to work with you on this important issue.
In contrast, numerous lawsuits are filed in Ohio, alleging employers have unlawfully discriminated against employees and former employers under Ohio’s statute prohibiting employment discrimination. Presently, employees and former employees may recover damages directly from individual supervisors and managers, as well as employers. The amount of punitive or non-economic damages is not limited by Ohio law.
In the last session of the Ohio House of Representatives, House Bill 300 was introduced, but not passed. It is expected to be re-introduced with a new number in the next session of the House. The Bill would, if enacted, greatly benefit Ohio employers, as well as their managers and supervisors. It would make Ohio law more consistent with many federal employment discrimination laws. It would also reverse past decisions of the Ohio Supreme Court that have been against the best interests of Ohio employers.
First, the bill would prohibit any recovery against any supervisor or manager unless that supervisor or manager is the employer. In other words, only employers would be liable for unlawful employment discrimination, which is the current federal law.
Second, the amount of compensatory damages for future pecuniary losses, emotional pain, suffering, inconvenience, mental anguish, loss of enjoyment of life and other non-pecuniary losses and the amount of punitive damages awarded to each employee or former employee because of unlawful employment discrimination would not exceed the following: (1) $50,000.00 for an employer with fewer than 100 employees in each of 20 or more calendar weeks in the current or preceding calendar year; (2) $100,000.00 for an employer with more than 100 and fewer than 200 employees in each of 20 or more calendar weeks in the current or preceding calendar year; (3) $200,000.00 for an employer with more than 200 and fewer than 500 employees in each of 20 or more calendar weeks in the current or preceding calendar year; (4) $300,000.00 for an employer with more than 500 employees in each of 20 or more calendar weeks in the current or preceding calendar year. Most employers would still be liable for back pay, including lost benefits, if found liable for unlawful employment discrimination.
Finally, House Bill 300 reduces the statute of limitations for bringing employment discrimination lawsuits under Ohio law from as long as 6 years in some cases to 300 days after the alleged unlawful discrimination occurred. Under federal law, employment discrimination claims must be filed within 300 days with the Equal Employment Opportunity Commission.
House Bill 300, if enacted, should make Ohio employers more competitive by making Ohio’s employment discrimination law more similar to federal law and those laws in high job growth states.
We encourage all employers who support the proposed change in Ohio law to take action to support its enactment. We will be keeping in close touch with the legislative process and would be delighted to work with you on this important issue.
