Fair Calculations in Civil Damages Act of 2025
Summary
The Fair Calculations in Civil Damages Act of 2025 aims to prohibit the use of race, ethnicity, gender, or sexual orientation in calculating damages for projected future earning potential in federal civil cases. It directs the Secretary of Labor to develop guidance for forensic economists to create inclusive future earnings tables. The Act also mandates studies by the Judicial Conference and the Administrative Office of the U.S. Courts to assess damages awarded and ensure fair calculations of future earning potential, respectively.
Expected Effects
This act would change how damages are calculated in federal civil cases, preventing courts from using demographic factors like race or gender to project future earnings. It will likely lead to the development of new, more inclusive guidelines for determining future earning potential. The act also seeks to ensure that calculations consider age and disability without violating equal protection laws.
Potential Benefits
- Promotes fairness by removing potentially discriminatory factors from damage calculations.
- Encourages the development of more inclusive and equitable methods for assessing future earning potential.
- Aims to reduce bias in the justice system related to protected characteristics.
- Provides training for federal judges on implementing the Act and using compliant future earnings tables.
- Seeks to align damage calculations with equal protection principles.
Potential Disadvantages
- May lead to challenges in accurately assessing individual earning potential if demographic data is completely disregarded.
- Could potentially reduce damage awards for plaintiffs who have historically faced discrimination affecting their earning potential.
- The definition of 'protected class' may be subject to interpretation and legal challenges.
- The effectiveness of the guidance developed by the Secretary of Labor and Attorney General will depend on its implementation by states.
- The studies mandated by the Act may reveal disparities that are difficult to address through legislation alone.
Constitutional Alignment
The Act aligns with the principle of equal protection under the law, as it seeks to prevent discrimination in damage calculations based on race, ethnicity, gender, or sexual orientation. This aligns with the 14th Amendment's Equal Protection Clause. However, the Act's impact on individual rights and liberties may require careful consideration to ensure it does not unduly infringe upon the ability of plaintiffs to seek redress for damages.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).