Back pay refers to the wages, benefits, or other compensation that an employee is owed by an employer due to wrongful termination, underpayment, or other violations of employment law.
It is the amount of salary or wages that should have been paid to the employee but was withheld or not paid for various reasons.
Back pay can be awarded through legal judgment or a settlement when it is determined that an employee was not compensated fairly or according to the terms of their employment contract.
This compensation might include hourly wages, salaries, bonuses, and benefits that were not provided during the period of wrongful employment action.
The calculation of back pay depends on the specific circumstances of the case, including the length of time and the nature of the compensation missed.
Labor Law: Often involves disputes over wages owed, including overtime pay and minimum wage violations.
Employment Discrimination: Back pay may be awarded in cases where discriminatory practices led to wrongful termination or underpayment.
Many people mistakenly believe that back pay only includes base salary or hourly wages.
In reality, back pay can encompass a broader range of compensation, including bonuses, overtime, and benefits, depending on what the employee would have earned had they not been subject to wrongful employment practices.
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Wayne State University School of Law
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