Back pay

Definition and stakes

Portrait of Sherman Minton Sherman Minton,  National Labor Relations Board v…

“ By the quarterly calculation approved by the Court in the instant case, not only may a wrongfully discharged employee often receive as back pay a greater amount than he would have received had he worked at his regular job, but the employer must pay more than he would have had to pay if he had had the employee's services during the period. ”
Source: Wikisource

Portrait of Felix Frankfurter Felix Frankfurter,  National Labor Relations Board v…

“ The Board considered that its Pennsylvania Greyhound formula for computing back pay adversely affected 'the companion remedy of reinstatement.' When an employee, sometime after discharge, obtained a better paying job than the one he was discharged from, it became profitable for the employer to delay an offer of reinstatement as long as possible, since every day the employee put in on the better paying job reduced back pay liability. ”
Source: Wikisource

Portrait of Stanley Forman Reed Stanley Forman Reed,  Social Security Board v. Nierotko…

“ It is also true that in requiring reparation to the employee through 'back pay' that reparation is based upon the loss of wages which the employee has suffered from the employer's wrong. 'Back pay' is not a fine or penalty imposed upon the employer by the Board. Reinstatement and 'back pay' are for the 'protection of the employees and the redress of their grievances' to make them 'whole.' Republic Steel Corp. ”
Source: Wikisource

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