The Maryland Fair Employment Practices Act allows employees in certain instances to pursue punitive damages for egregious discrimination and retaliation in the workplace, but there is a cap on the amount of damages awarded. Employees in Howard County, Montgomery County, and Prince George's County, however, have another option that can potentially lead to larger monetary awards. To receive punitive damages, you’ll not only need to prove that discrimination or retaliation occurred but also that it was done to deliberately cause harm.
This article by
TELG principal & general counsel Nicholas Woodfield and TELG associate Kirsten Fetrow was published by The Employment Law Group, P.C. on August 25, 2026.
When Employers Cross the Line: Punitive Damages in Maryland Discrimination Cases
By Nicholas Woodfield and Kirsten Fetrow
IMPORTANT: The following article is intended as a general summary of facts and law and not as individual legal advice upon which you should rely or act. Every case is unique and specific. This article represents our firm’s best knowledge as of August 2026.
Losing your job can be a difficult situation regardless of the circumstances, but it can feel even harder to bear when you’ve been fired unfairly. What if your employer fired you for reporting discrimination? Or your employer or a coworker deliberately attempted to harm you? Or you endured months of harassment while management looked the other way?
Compensation for lost wages and mental anguish are the typical remedies in successful employment cases, but sometimes they do not address the degree of the egregiousness an employer engaged in. Punitive damages might then deliver the justice warranted when an employer’s conduct is especially harmful.
Maryland employees can seek punitive damages but only in limited circumstances. Those who work in Howard County, Montgomery County, and Prince George’s County, however, have more options than the rest of the state — in part because of a pivotal lawsuit litigated by The Employment Law Group® law firm.
What Are Punitive Damages?
Punitive damages are awarded when a jury or judge decides that a defendant’s actions were so egregious that they warrant punishment. Where compensatory damages aim to make up for measurable financial losses or emotional harm, punitive damages are meant to deter defendants from engaging in similar conduct in the future. A claim for punitive damages is made in conjunction with other claims, such as discrimination.[1]
An employee seeking punitive damages must show that their employer acted with “actual malice”[2] or “reckless indifference,” which we’ll explain further in a later section.
Can You Get Punitive Damages for Discrimination Cases Under Maryland Law?
Employees can seek punitive damages under the Maryland Fair Employment Practices Act (MD FEPA). MD FEPA prohibits employment discrimination based on an employee’s protected status such as race, sex, religion, national origin, age, miliary status, disability, and gender identity.[3] The law’s anti-discrimination provisions generally apply to employers with 15 or more employees, while its anti-harassment provision may apply regardless of size.
The amount of punitive damages employees can get under MD FEPA is capped; it depends on employer size and is combined with compensatory damages.[4] For example, the combined compensatory and punitive damages cap for an employer with 15-100 employees is $50,000. For an employer with 101 to 200 employees, the cap is $100,000; for an employer with 201 to 500 employees, the cap is $200,000; and for an employer with 500 or more employees, the cap is $300,000.[5]
Employees in Howard County, Montgomery County, and Prince George’s County also can seek punitive damages for discrimination claims under Md. Code Ann., State Gov’t § 20-1202, which establishes the right to pursue discrimination claims in the aforementioned counties. Anyone outside of those three counties can’t bring a discrimination claim under that law but may be able to seek punitive damages under MD FEPA or federal laws, such as Title VII, depending on the size of their employer.
The ability to seek punitive damages is not explicitly mentioned in Section 20-1202. It wasn’t until 2013 that a court opinion determined that employees in Howard, Montgomery, and Prince George’s counties could receive punitive damages.
The case, Edgewood Mgmt. Corp. v. Jackson, involved a manager who was punished for acting on an employee’s discrimination complaints. The Employment Law Group represented Donna Jackson, who had worked at the property management company Edgewood for over 30 years.
One of Ms. Jackson’s subordinates complained that a supervisor treated her differently than a male employee. Ms. Jackson told leadership about the employee’s complaint. In retaliation, she was told that her pay would be cut and that she would be transferred to properties far from her home. Ms. Jackson sued Edgewood, asking for compensatory and punitive damages.
The jury awarded Ms. Jackson $650,000 in compensatory and economic damages. However, the trial court judge reduced the award to $89,195 and denied Ms. Jackson punitive damages.
The Employment Law Group appealed the decision, and the appeals court found there was no limit on the amount or type of damages that could be awarded under Section 20-1202. Ms. Jackson’s jury award of $650,000 was reinstated.
This appellate decision in Edgewood wrote into case law that plaintiffs in Howard, Montgomery, and Prince George’s counties can seek punitive damages under Section 20-1202. Punitive damages awarded under this law are not subject to a cap, but the amount awarded might be reduced if the court determines that it’s excessively disproportionate to the other damages awarded or otherwise unfairly large for the actual harm done, which would violate the U.S. Constitution’s Due Process Clause.
How to Get Awarded Punitive Damages for Discrimination Cases Under Maryland Law
Punitive damages can be awarded at the jury’s discretion, but it requires a two-step showing. First, the employee must prove that discrimination or retaliation occurred. Then they must prove that the discrimination and/or retaliation was accompanied by particularly egregious conduct or malicious intent. If the employee satisfies both requirements, the jury may decide whether to award punitive damages and, if so, how much to award.
Step One: Proving Discrimination or Retaliation
For a successful complaint, an employee would need to establish that:
- They possess a protected trait (e.g., gender, race, or disability status), or they engaged in a “protected activity” to oppose illegal discriminatory acts (e.g., reporting discrimination or participating in an internal investigation);
- Their employer took an adverse employment action (e.g., failing to promote the employee accordingly, paying them less, or terminating them unfairly); and
- There is a direct link between the employee’s protected status or activity and the employer’s adverse action.
An employer will claim that they didn’t do anything wrong. The employee will need to prove that their employer is making up an excuse to cover up for their discrimination/retaliation and must submit sufficient evidence to show that it is more likely than not that the discrimination/retaliation occurred. Lawyers and judges refer to this “more likely than not” standard as a “preponderance of the evidence.”
Step Two: Proving “Actual Malice” or “Reckless Indifference”
Punitive damages are not available in every case. An employee must also prove that the defendant acted with actual malice (meaning they intentionally attempted to mistreat the employee) or reckless indifference to the consequences of their actions.
Malice or reckless indifference can be shown in many ways. Some examples include an employer:
- Reprimanding an employee for performance issues that didn’t previously exist;
- Spreading false information about an employee to harm their reputation;
- Making threats, such as, “you’ll regret this” or “I’ll make sure you never work here again.”
Proving malice requires a stricter standard of evidence. This reflects the seriousness of punitive damages, which are meant to punish particularly egregious conduct rather than compensate every successful claimant.
An employee must present “clear and convincing evidence” that the discrimination or retaliation was harmful enough to warrant punitive damages. The evidence needs to be strong enough to convince the jury that the misconduct was highly probable or reasonably certain — a firm belief rather than just “more likely than not.”
In Hanna v. Emergency Med. Assocs., P.A., Dr. Rebecca Hanna claimed her employer wrongfully terminated her in retaliation for filing a sex discrimination complaint. The court determined that she had sufficient evidence to seek punitive damages.
Dr. Hanna provided testimony at trial that her employer wrongfully accused her of incompetence and did not give her an opportunity to respond to accusations before firing her. One of the accusations involved criticisms of Dr. Hanna’s patient charts, but she had not previously received any negative feedback. Her employer also did not allow Dr. Hanna to resign in lieu of being fired and failed to give her the 30-day notice required under her employment contract. The employer then gave contradictory references to her prospective employers.
Can You Sue Individual Managers in Maryland Discrimination Cases?
A supervisor can be liable if they take an adverse action and are motivated by discriminatory reasons.[6]
MD FEPA allows lawsuits against “any person” who engages in, aids, abets, or compels a discriminatory act, which generally covers individual supervisors who directly participate in unlawful employment practices.[7]
Under Section 20-1202, however, arguments for individual liability depend on the employee’s specific county code. Each county has a different definition for what counts as an “employer.”[8]
The Montgomery County Code[9] and the Prince George’s County Code[10] both define an employer as a “person” who has at least one employee. The use of the word “person” as well as the low threshold can be the basis for arguing that the law is not meant to be limited to corporate or business entities.
The Howard County Code has a higher threshold — at least five employees — but similarly uses the word “person.”[11] If an individual supervisor meets that threshold, an employee can perhaps argue for individual liability.
A discrimination complaint against an individual supervisor should be filed initially with the specific county’s office of human rights and should specify that the individual manager is a “person” who committed or caused the discriminatory practice.
Can Requesting Punitive Damages Help My Case?
A viable claim for punitive damages can result in a faster and more favorable resolution.
Going to trial means risking a jury siding with the employee and awarding punitive damages. The damages might get reduced later, but either way, the employer will still have to pay whatever amount the court deems appropriate. Employers may wish to avoid this possibility by offering a reasonable settlement instead.
Employers might also want a quick resolution to avoid the reputational harm that can result from allegations of egregious discriminatory conduct becoming part of the public record.
Making a claim for punitive damages can be a powerful strategy in negotiating and settling a discrimination claim. If you are a Maryland employee and you believe your employer has discriminated or retaliated against you, contact The Employment Law Group.
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[1] Warnick v. Delmarva Power & Light Co., No. CV RDB-23-0175, 2023 WL 7282950, at *4 (D. Md. Nov. 3, 2023).
[2] Owens-Illinois, Inc. v. Zenobia, 325 Md. 420, 460 (1992).
[3] Md. Code Ann., State Gov’t § 20-606.
[4] Id. §§ 20-1009(b)(3) and 20-1013.
[5] Id. § 20-1009(b)(3).
[6] Staub v. Proctor Hosp., 562 U.S. 411, 419, 131 U.S. 1186, 1192, 179 L. Ed. 2d 144 (2011)
[7] Id. § 10 101 et seq.
[8] See Edgewood Mgmt. Corp. v. Jackson, 212 Md. App. 177, 199, 66 A.3d 1152, 1165 (2013).
[9] Montgomery County Code, Sec. 27-19(c).
[10] Prince Georges County Code, PGCC § 2-186.
[11] Howard County Code, Sec. 12.208.
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Nicholas Woodfield is a principal and general counsel at The Employment Law Group, P.C.; Kirsten Fetrow is an associate at the firm.
