Cite as: 527 U. S. 526 (1999)
Opinion of the Court
briefing, see Brief for Chamber of Commerce of the United States as Amicus Curiae 22-27, and substantial questioning at oral argument, see Tr. of Oral Arg. 11-17, 19-24, 49-50, 54-55. Nor did respondent discount the notion that agency principles may place limits on an employer's vicarious liability for punitive damages. See post, at 552. In fact, respondent advanced the general position "that the higher agency principles, under common law, would apply to punitive damages." Tr. of Oral Arg. 49. Accordingly, we conclude that these potential limitations on the extent of respondent's liability are properly considered in the instant case.
The common law has long recognized that agency principles limit vicarious liability for punitive awards. See, e. g., G. Field, Law of Damages §§ 85-87 (1876); 1 Sedgwick, Damages § 378; McCormick, Damages § 80; 2 F. Mechem, Law of Agency §§ 2014-2015 (2d ed. 1914). This is a principle, moreover, that this Court historically has endorsed. See, e. g., Lake Shore & Michigan Southern R. Co. v. Prentice, 147 U. S. 101, 114-115 (1893); The Amiable Nancy, 3 Wheat. 546, 558-559 (1818). Courts of Appeals, too, have relied on these liability limits in interpreting 42 U. S. C. § 1981a. See, e. g., Dudley v. Wal-Mart Stores, Inc., 166 F. 3d 1317, 1322- 1323 (CA11 1999); Harris v. L & L Wings, Inc., 132 F. 3d 978, 983-985 (CA4 1997). See also Fitzgerald v. Mountain States Telephone & Telegraph Co., 68 F. 3d 1257, 1263-1264 (CA10 1995) (same in suit under 42 U. S. C. § 1981). But see Deffenbaugh-Williams v. Wal-Mart Stores, Inc., 156 F. 3d 581, 592-594 (CA5 1998), rehearing en banc ordered, 169 F. 3d 215 (1999).
We have observed that, "[i]n express terms, Congress has directed federal courts to interpret Title VII based on agency principles." Burlington Industries, Inc. v. Ellerth, 524 U. S. 742, 754 (1998); see also Meritor Savings Bank, FSB v. Vinson, 477 U. S. 57, 72 (1986) (noting that, in interpreting Title VII, "Congress wanted courts to look to agency principles for guidance"). Observing the limits on liability
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