Race, Gender and Economic Damages
On January 1, 2020, California, based on S B 41, added Section 3361 to its Civil Code.
The most significant economic implication of this legislation is that economists must change the way they calculate “damages,” which is the amount of compensation injured people (plaintiffs) get for lost income when they are unable to work due to injury or some debilitating condition, which reduces their ability to earn.
A common practice in calculating damages is to consider the race and gender of the plaintiff. Such consideration makes a big difference.