H.R. 4161: Fair Calculations in Civil Damages Act of 2025

This bill, known as the Fair Calculations in Civil Damages Act of 2025, aims to change how damages are calculated in civil lawsuits in the United States. Here are the key points of what the bill proposes:

Damage Calculations

• The bill prohibits U.S. courts from awarding damages based on a plaintiff's projected future earning potential if these calculations depend on factors such as race, ethnicity, gender, or actual or perceived sexual orientation.
• The only exception is that courts can still award damages if the plaintiff is part of a protected class as defined by federal civil rights laws.

Definitions

• The term "future earnings table" refers to tools used to estimate how many years an individual might work in the future and what their average future wages might be based on median earnings in a geographic area.
• A "protected class" is a group that is legally protected from discrimination due to shared characteristics.

Guidance Development

• The Secretary of Labor must issue guidance within 180 days after the bill becomes law to help economists create future earnings tables that exclude bias based on race, ethnicity, gender, or sexual orientation.
• This guidance should assist in making calculations for state tort cases free from bias as well.

Studies and Reports

• Within one year of the enactment, the Judicial Conference of the United States is required to conduct a study about damages awarded in federal personal injury cases, including examining data by case type and by protected class characteristics.
• A report summarizing the study must be submitted to Congress within 18 months of the bill's enactment.
• Additionally, the Administrative Office of the United States Courts will study how to ensure future earnings calculations consider age and disability without conflicting with equal protection laws, also reporting to Congress within a year.

Training for Federal Judges

• The Federal Judicial Center is tasked with training federal judges on the implementation of this bill, including how to properly use future earnings tables that comply with its provisions.

Relevant Companies

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