More effective backpay remedies for illegally discharged employees

March 11, 2011

Acting General Counsel to provide more effective backpay remedies for illegally discharged employees

NLRB Acting General Counsel Lafe Solomon today announced guidelines to help employees who are illegally discharged receive full compensation in backpay awards.

Mr. Solomon issued a memo outlining new methods for calculating backpay that includes daily compounded interest as recently ordered by the Board, and compensates for such things as expenses to search for employment and tax penalties for lump sum payments.

In a second memo, he urged reconsideration of two 2007 Board decisions that require illegally discharged employees to start looking for a new job within two weeks of being fired, and shifted the burden from the wrongdoer to the General Counsel to prove that they have diligently pursued work throughout the backpay period. Earnings from these other jobs are deducted from backpay awards.

The actions announced today are part of an ongoing initiative to ensure that unfair labor practices are more fairly and effectively remedied.

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