A Checklist outlining the key steps a federal agency should take when defending a claim of compensatory damages in federal sector equal employment opportunity (EEO) and Merit Systems Protection Board (MSPB) cases. This Checklist addresses the evidence necessary for a complainant to establish a claim of compensatory damages under Title VII of the Civil Rights Act of 1964 (Title VII), provides information for assessing the strength of the complainant's compensatory damages claim; discusses methods for conducting effective discovery to learn what evidence the complainant has to support a claim of compensatory damages, and discusses calculating the agency's potential liability in discrimination cases involving a claim of compensatory damages.