WHAT ARE COMPENSATORY DAMAGES FOR DISCRIMINATION?
A lot of FEDSMILL articles mention that employees who win discrimination grievances or complaints often get “compensatory damages.” So, we thought we would take just a minute to explain what that term means because these damages, up to an extra $300,000. beyond an employee’s back pay, interest and attorney fees, can often be much more than anything else an arbitrator or the EEOC awards the employee. Compensatory damages include damages for (1) past pecuniary loss (out-of-pocket monetary loss), (2) future pecuniary or monetary loss, and (3) nonpecuniary loss (emotional harm). Pecuniary losses are out-of-pocket expenses incurred because of the agency’s discriminatory action, including job-hunting expenses, moving expenses, medical expenses, psychiatric expenses, physical therapy expenses, and other quantifiable out-of-pocket expenses. These can be expenses incurred in the past or the future. For example, if the employee’s future earning power has been reduced as a result of the discrimination that would be another instance of future pecuniary damages. Non-pecuniary losses are losses that are not subject to precise quantification, i.e., emotional pain, suffering, inconvenience, mental anguish, loss of enjoyment of life, injury to professional standing, injury to character and reputation, injury to credit standing, and loss of health. When filing a grievance alleging discrimination asking for “all appropriate remedies” should be enough to remove any doubt that the arbitrator has the power to award any kind of compensatory damages. Moreover, there is no need to prove these damages at the initial arbitration or EEO hearing. The decision-makers usually order the parties to take 60 or so days to discuss an appropriate settlement figure or to then return to them for a final decision.