Relating to compensatory and punitive damage limits in employment discrimination claims.

HB 4245 sets new limits on compensatory and punitive damages in Texas employment discrimination lawsuits. It caps total damages at $50,000 for employers with fewer than 101 workers, $100,000 for 101-200 employees, $200,000 for 201-500 employees, and $300,000 for employers with over 500 workers. The bill automatically adjusts these limits annually using the U.S. Bureau of Labor Statistics' CPI-W index (measuring urban wage earners' price changes) starting September 1, 2025. These rules apply only to discrimination claims occurring on or after the bill's effective date, with prior claims governed by older law.