BACK PAY AWARD Meaning and
Definition
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Back pay award refers to a monetary payment that is awarded to an individual or group of workers by an employer or court following a legal judgment or settlement. This payment is provided to compensate individuals for wages or benefits that were wrongfully denied or unpaid in the past. The back pay award aims to rectify any financial losses or harm caused by the employer's violation of labor laws, employment contracts, or any other legal obligations.
The amount of back pay awarded is typically determined by calculating the unpaid wages or benefits owed to the aggrieved employees for the specified period of time. This may include regular wages, overtime pay, bonuses, commissions, or any other compensation that should have been received during the period in question. It can also include fringe benefits such as health insurance or retirement contributions.
Back pay awards can result from various employment-related issues, such as unlawful terminations, wage and hour violations, discrimination, or breach of contract. They are intended to provide fair compensation to employees who have suffered financial losses due to unjust circumstances in the workplace.
Receiving a back pay award can bring relief to the affected employees, as it restores the compensation they were rightfully entitled to. It provides them with the financial recompense they deserve for the employer's wrongful actions or negligence.
