The Fifth Circuit concluded that Title VII's express mitigation requirement applies to back pay, but not to compensatory damages for emotional pain, suffering, mental anguish, and similar noneconomic harms. The court emphasized that Congress included a mitigation requirement in the statute's back-pay provision but omitted one from the compensatory damages provision. It also declined to read a common-law mitigation requirement into Title VII.
The ruling addresses an issue of first impression in the Fifth Circuit and rejects the reasoning of a 2022 Texas federal district court decision that had reached the opposite conclusion. As a result, employers may face greater difficulty reducing emotional distress awards based on an employee's failure to seek treatment.