| 1 | 1 | | 89R15475 DNC-D |
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| 2 | 2 | | By: Reynolds H.B. No. 4245 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to compensatory and punitive damage limits in employment |
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| 10 | 10 | | discrimination claims. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Section 21.2585, Labor Code, is amended by |
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| 13 | 13 | | amending Subsection (d) and adding Subsection (d-1) to read as |
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| 14 | 14 | | follows: |
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| 15 | 15 | | (d) Subject to Subsection (d-1), the [The] sum of the amount |
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| 16 | 16 | | of compensatory damages awarded under this section for future |
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| 17 | 17 | | pecuniary losses, emotional pain, suffering, inconvenience, mental |
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| 18 | 18 | | anguish, loss of enjoyment of life, and other nonpecuniary losses |
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| 19 | 19 | | and the amount of punitive damages awarded under this section may |
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| 20 | 20 | | not exceed, for each complainant: |
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| 21 | 21 | | (1) $50,000 in the case of a respondent that has fewer |
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| 22 | 22 | | than 101 employees; |
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| 23 | 23 | | (2) $100,000 in the case of a respondent that has more |
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| 24 | 24 | | than 100 and fewer than 201 employees; |
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| 25 | 25 | | (3) $200,000 in the case of a respondent that has more |
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| 26 | 26 | | than 200 and fewer than 501 employees; and |
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| 27 | 27 | | (4) $300,000 in the case of a respondent that has more |
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| 28 | 28 | | than 500 employees. |
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| 29 | 29 | | (d-1) When the consumer price index increases with respect |
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| 30 | 30 | | to the amount of that index on September 1, 2025, the limits on |
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| 31 | 31 | | damages prescribed by Subsection (d) shall be increased by a sum |
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| 32 | 32 | | equal to the amount of such limit multiplied by the percentage |
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| 33 | 33 | | increase in the consumer price index, as published by the Bureau of |
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| 34 | 34 | | Labor Statistics of the United States Department of Labor, that |
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| 35 | 35 | | measures the average changes in prices of goods and services |
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| 36 | 36 | | purchased by urban wage earners and clerical workers' families |
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| 37 | 37 | | (CPI-W: Seasonally Adjusted U.S. City Average--All Items), |
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| 38 | 38 | | between September 1, 2025, and the time at which damages subject to |
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| 39 | 39 | | such limits are awarded by final judgment or settlement. |
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| 40 | 40 | | SECTION 2. Section 21.2585(d-1), Labor Code, as added by |
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| 41 | 41 | | this Act, applies only to a complaint in relation to an unlawful |
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| 42 | 42 | | employment practice that occurs on or after the effective date of |
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| 43 | 43 | | this Act. A complaint in relation to an unlawful employment |
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| 44 | 44 | | practice that occurs before the effective date of this Act is |
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| 45 | 45 | | governed by the law in effect on the date the unlawful employment |
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| 46 | 46 | | practice occurred, and the former law is continued in effect for |
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| 47 | 47 | | that purpose. |
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| 48 | 48 | | SECTION 3. This Act takes effect September 1, 2025. |
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