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3rd Circ. Backs Tax Offset In Worker Bias Awards

Law360 (February 4, 2009, 12:00 AM EST) -- Widening the split between federal appeals courts, the U.S. Court of Appeals for the Third Circuit has ruled that workers who prevail in discrimination cases may be entitled to extra damages to offset the taxman's cut of a lump-sum back pay award.

In a precedential opinion that puts it at odds with one of its sister circuits, the appeals court affirmed on Jan. 30 a district judge's order augmenting a jury's $200,000 award to counter the tax consequences incurred by Agere Systems Inc. employee Joan Eshelman....
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