by David Johnson
A new Tennessee law going into effect on July 1 puts a cap on damages employees can collect in wrongful termination claims.
Public Chapter 995 affects the Tennessee Human Rights Act (THRA), the Tennessee Public Protection Act (TPPA), and the Tennessee Disability Act (TDA). The new law imposes a cap on compensatory damages aggrieved employees can recover under all three statutes for future monetary losses, emotional pain and suffering, inconvenience, mental anguish, loss of enjoyment of life, and other nonmonetary losses.
The caps depend on the number of employees an employer has. The caps range from $25,000 for employers with eight to 15 employees to $300,000 for employers with more than 500 employees. The caps don’t apply to back pay, interest on back pay, front pay, or equitable relief.