At least 39 states have enacted or proposed Y2K laws. Some state statutes, such as Virginia’s, impose stricter limits on liability and damages than federal law.

While some state Y2K provisions may be pre-empted, the federal Y2K Act specifically exempts from pre-emption “any state law that provides stricter limits on damages and liabilities, affording greater protection to defendants in Y2K actions, than are provided in this Act.” See Pub. L. No. 106-37, �16 (1999). Thus, in many Y2K-related lawsuits, defendants will rely on state limits on liability and damages-either to supplement federal statutory protection or because some state Y2K provisions apply to circumstances not covered by federal law.

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