Appellate decision means Maryland counties face uncapped liability in workplace discrimination and retaliation claims
Maryland’s top appeals court just ruled that local governments can’t cap damages in workplace discrimination cases—a decision with big implications for public sector HR.
On October 29, 2025, the Appellate Court of Maryland decided Joseph Watts v. Prince George’s County, Maryland, holding that the state’s Local Government Tort Claims Act does not limit how much a county must pay if found liable for discrimination or retaliation under state or local employment laws.
The case began when Joseph Watts, a former correctional officer, suffered a below-the-knee amputation due to complications from diabetes. After his doctor cleared him to return to work with a prosthetic leg, Watts was promoted to lieutenant, a position that involved mostly ministerial duties but still required him to conduct walk-throughs of jail cells.
According to the complaint, Watts was required to pass a physical agility test before being allowed to return to full duty. Watts alleged that this test was typically only given to new recruits and that he received less notice and preparation time than was standard for new recruits. He completed all eight events in the test, but was informed he failed and was not provided the results until six weeks later. Watts proposed reasonable accommodations, but the department did not accept them and continued to require he pass the physical agility test. Watts initially agreed to retake the test, but did not proceed after learning it would not be administered by a third-party agency as he had expected. He was then placed on leave and notified that his employment was being terminated due to his disability. Watts accepted a disability retirement settlement to mitigate damages and maintain his insurance.
Watts filed suit, alleging employment disability discrimination and retaliation under the Maryland Fair Employment Practices Act and the Prince George’s County Code. A jury found in his favor on all counts and awarded him $1.7 million in damages, including back pay, future monetary losses, and other damages.
The county moved to reduce the award, arguing that the Local Government Tort Claims Act capped damages at $400,000. The circuit court agreed and reduced the verdict. Watts appealed, and the Appellate Court of Maryland reversed, holding that the damages cap does not apply to statutory employment discrimination and retaliation claims under Maryland law. The court reasoned that the cap was not intended to cover statutory causes of action like those brought under the Maryland Fair Employment Practices Act and the Prince George’s County Code.
The case has been remanded for further proceedings consistent with the appellate court’s opinion. The decision clarifies that public sector employers in Maryland may face higher liability in statutory discrimination and retaliation cases, underscoring the importance of compliance and fair accommodation practices for HR professionals.
