Accessibility Tools

Skip to main content

The Latest      —

"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.
Early morning Bagan, Myanmar
The Trump Administration has acted to terminate TPS status for several countries.  Of course, litigation has followed each notice of termin…
staff
In many situations, employers utilizing staffing companies or other independent contractors to provide workers, enter into contracts with t…
discarded papers
During the Biden administration, a new concept was adopted by the Biden-appointed NLRB in which employers were required to bargain with a u…
be reasonable
In a memo to the NLRB regional offices in late February, NLRB General Counsel Crystal Carey told regional NLRB officials to reduce efforts…
gender neutral bathroom sign
On February 26, 2026, the Equal Employment Opportunity Commission (EEOC) ruled that federal employers can lawfully block transgender worker…
sign: please stay on the path
The classification of workers as employees or independent contractors is incredibly important to businesses.  Employment protection laws do…