What does qualified immunity allow?

• A. Pay no damages at all
• B. Pay all damages indefinitely
• C. The agency is liable for punitive damages only
• D. Pay compensatory damages up to a certain amount

Answer: (D)

Qualified immunity is a shield for government officials that protects them from civil damages unless they violated a clearly established constitutional or statutory right that a reasonable person would have known. When this shield applies, it generally prevents damages from being awarded in many cases. If liability does attach, the damages are typically compensatory—designed to make the plaintiff whole—not punitive. So the idea that qualified immunity allows paying compensatory damages up to a certain amount captures the notion that liability, if it exists, is limited to compensation rather than unlimited or punitive relief. The other options misstate the framework: qualified immunity does not automatically expose the agency to all damages, it does not justify punitive damages against the agency, and it is not about indefinite liability.