What does Back Pay mean? Read on to discover the definition & meaning of the term Back Pay - to help you better understand the language used in insurance policies.
Damages claimed by a former employee representing wages and benefits that would have been paid to the former employee from the time the employee was terminated up to the time in which a claim is settled or a judgment is rendered. For example, if an employee is wrongfully terminated on January 1, 2013, a jury award on January 1, 2015, would encompass 2 years of "back pay." The majority of, but not all, employment practices liability insurance (EPLI) policies include "back pay" within their definitions of "covered damages."
We hope the you have a better understanding of the meaning of Back Pay.