Back pay is a term linked to wage violations to describe the difference in sum between what the employee was paid and what he/she should have been paid.
Definition of Back pay
Back pay is a term linked to wage violations to describe difference in sum between what the employee was paid and what he/she should have been paid.
It generally includes past salaries and other benefits to which an employee is entitled either because of a retroactive increase or wrongful termination. If it's the latter the amount is calculated from the date of termination to the date a claim was finalized.
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