What are punitive damages in employment law?

Punitive damages in employment law are specifically designed to punish an individual or entity for particularly egregious or intentional wrongful conduct and to deter similar behavior in the future. These damages go beyond compensatory damages, which are intended to redress actual losses experienced by the victim, such as lost wages or emotional distress. Instead, punitive damages are an additional remedy aimed at showing that society condemns the specific wrongful act, thereby reinforcing legal norms.

This distinction is crucial in understanding employment law because punitive damages come into play when a plaintiff can demonstrate that the defendant's actions were not only harmful but also reprehensible, such as cases involving discrimination, harassment, or retaliatory firing that demonstrates malice or gross negligence. The intention behind awarding punitive damages is not only to compensate the victim but also to serve as a strong warning to others who might engage in similar misconduct. By emphasizing punishment and deterrence, this legal concept helps maintain workplace standards and ethics.