19/9/18 Back Pay


Generally an award of an employee’s lost wages, and in some cases fringe benefits, back pay is an award that the employee would have earned but for his or her discharge in violation of a legal right, either one based on statute or acquired by contract. These awards can take two forms: (1) a legally enforceable decree ordering an employer to pay an employee retroactively a designated increase in salary that occurred during a particular period of employment or (2) a decision rendered by a judicial or administrative body that an employee has a legal right to collect an accrued salary which has not been paid out to him or her.