The state Assembly approved a bill Tuesday that would eliminate some compensation for employees that claim discrimination.

Under current law, an employee alleging workplace discrimination can file a complaint with the Department of Workforce Development.

If their case is recognized by circuit court, the employee can be reinstated and compensated for back pay and attorney costs. Small businesses with 100 or fewer employees pay employees $50,000. Large businesses can owe as much as $300,000.

Under the proposed bill authored by Sen. Glenn Grothman, R-West Bend, and Rep. Michelle Litjens, R-Oshkosh, employers would not be responsible for providing workers who complain of discrimination with some compensatory and punitive damages.

Workers could seek action under federal laws, but the state would no longer assist workers in filing and obtaining damages. A similar version of the bill was passed in the Senate last November.

“The main purpose behind this bill is protecting employers from meritless claims,” Andrew Cook, spokesperson for Wisconsin Civil Justice Council, Inc, said. “If you are a small business owner and are hit with one of these damages, it could wipe out your business.”

Cook said plaintiffs with discriminatory suits often sue employers for excessively high damages. Fearing court, defendants often settle for these amounts, even without proof of discrimination in their workplace.

Bill Smith, state director of the National Federation of Independent Business, said in a statement Wisconsin’s Fair Employment Act worked well for years.

Smith said in the statement prior to the introduction of the act in 2009, Wisconsinites were still able to obtain back pay, attorney fees, court costs and reinstatement of the employee. A coalition of Wisconsin and U.S. business groups supports the legislation.

“Anyone who feels they have been discriminated against has the right to file a lawsuit; they have a lot of options,” Cook said. “This has nothing to do with pay equity and doesn’t prevent someone from taking recourse.”

The bill is being widely criticized by Democrats, who argue the changes promote pay inequality. Many claim that women and other minorities will have a much more difficult time proving discrimination with just federal protections.

Rep. Kelda Helen Roys, D-Madison, said Republican legislators repealed protections put in place to ensure women are able to seek fair pay in the court system.

“Women traditionally make 78 cents on the dollar to what men make,” Roys said. “In the last session, we were able to finally put some protection in. The Republican majority took away those protections.”

Rep. Brett Hulsey, D-Madison, said there was no evidence that employee compensation threatens the success of small businesses.

He called the claim nonsense and said as a small business owner, he has not heard of many of these cases.

Hulsey said young women and female college graduates entering the workplace would be impacted the most.

“They want to keep women making less and keep women rights on hold,” he said.

With both Senate and House passage, the bill is awaiting approval from Gov. Scott Walker.

Republican legislators did not return requests for comment.