Accessibility Tools

Skip to main content

"Nuclear Punitives" Is New Term for Runaway Jury Verdicts in Employment Cases

Written on .

In December, a California jury awarded $150 million punitive damages in an employment discrimination/ retaliation case brought by an individual plaintiff.  Another California jury found Tesla liable for $137 million in punitive damages after a worker was subjected to racial harassment.  In both cases, the attorneys for the plaintiffs received millions of dollars awarded in attorneys' fees.

The term "nuclear punitives" is now being applied to cases where the plaintiff's verdicts vastly exceed any losses to the plaintiff.  It is an outgrowth of the term "nuclear verdicts," which was often used to describe massive plaintiff verdicts in certain personal injury accidents. 

Some call a punitive damages ratio of 4-1 to actual damages "close to the line of Constitutional propriety," referring to the due process clause of the Fourteenth Amendment, which prohibits grossly excessive or arbitrary punishments.  Many of these cases deal with very bad fact patterns creating a desire by jurors to punish the employer.

The existence of such "nuclear punitive" cases with runaway juries are one of the reasons why so many employers require individual employment agreements with mandatory arbitration clauses prohibiting court litigation and class actions.  In some ways, potential plaintiffs are benefitted in the sense that arbitration is much cheaper and quicker than other forms of litigation.

This is part of our April 2022 Newsletter.

View newsletter online

Download the newsletter as a PDF

Get Email Updates

Receive newsletters and alerts directly in your email inbox. Sign up below.
scales of justice
In April 2025, the Administration ordered federal agencies to cease enforcement of a legal theory known as “disparate impact,” a neutral po…
timeclock
The new Administration’s tax law lets most workers deduct up to $12,500 of the “half” of the “time-and-a-half” of federal overtime income t…
chairs
The U.S. Senate on December 19, 2025, confirmed two nominees to give the National Labor Relations Board (NLRB) the minimum number needed to…
american flag
On November 19, 2025, the EEOC released new guidance affirming EEOC Chair Andrea Lucas’s commitment in advancing robust enforcement and awa…
religuous symbols
In light of a recent U.S. Supreme Court ruling as well as an announcement by the new Chair of the EEOC, we expect an emphasis in the curren…
security vehicle
DHS announced the termination of all categorical family reunification parole programs for nationals of Colombia, Cuba, Ecuador, El Salvador…