An electric power steering system includes a steering wheel, an electric assist motor operatively coupled to the steering wheel, and an electronic controller operatively coupled to the motor for receiving a first signal representative of torque applied to the steering wheel, and a second signal representative of angular velocity of the motor. The electronic controller produces an active damping motor command signal according to a function of the first and second signals. The active damping motor command signal is scaled by a first factor if the first and second signals are both positive, or if the first and second signals are both negative, to provide a scaled motor command signal. The active damping motor command signal is scaled by a second factor if the first signal is positive and the second signal is negative, or if the first signal is negative and the second signal is positive, to provide the scaled motor command signal. The scaled motor command signal is applied to the motor.