Employers Must Cover Extra Taxes On Backpay Awards: NLRB

Law360, New York (December 21, 2012, 5:19 PM EST) -- In a decision that will impact most labor cases in which backpay is awarded, the National Labor Relations Board ruled Tuesday that employers must compensate workers for any extra taxes incurred as a result of their receipt of backpay in a lump sum.

The decision also requires employers ordered to pay back wages to file a report with the Social Security Administration allocating the back wages to the years in which they were or would have been earned.

The board used a case in which it...
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