On May 28, 2026, the Eleventh Circuit issued an opinion in Khatabi v. Car Auto Holdings, LLC, holding, in relevant part, that an employer waived its ability to request a damages cap under Title VII based on its smaller size because it failed to plead the size damages cap as an affirmative defense.
In the underlying case, an employee sued her former employer and former manager for sex discrimination under both Title VII and the Florida Civil Rights Act (FCRA). Notably, the employer testified at trial that it had around 22 employees. After trial, the jury awarded the employee $81,028 in compensatory damages and $750,000 in punitive damages. On motion, the trial court reduced the employee’s damages to $181,028 based on the punitive damages cap of $100,000 imposed under the FCRA and the $50,000 total damages cap imposed under Title VII for employers with fewer than 101 employees.
The Eleventh Circuit reversed, finding that (1) the damages caps under Title VII and the FCRA applied with a… Read the complete article here...
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