What back pay is
Back pay is the wages and benefits you would have earned from the day you were fired to the day the case is resolved, minus what you earned elsewhere in the meantime. It is the core of most wrongful termination and discrimination awards.
Benefits count too
Lost health insurance, retirement contributions, bonuses and paid time off add to back pay. Employer benefits commonly equal 20% to 30% of salary.
The duty to mitigate
You must make reasonable efforts to find comparable work. Keep a record of applications and interviews. If you stop looking, back pay can be cut off.
Is it wrongful termination?
Most US employment is at will, so being fired unfairly is not always illegal. A firing is wrongful when it breaks a law or contract: discrimination, retaliation for reporting wrongdoing, taking protected leave, or breaching an employment agreement.
Questions people ask
Is unemployment deducted from back pay?
It depends on the law and the state. Federal courts are split, and some states deduct it.
How far back does back pay go?
From the termination date, though some claims limit the period, such as two years before an EEOC charge.