Back Pay

Any form of unpaid financial compensation owed to an employee by an employer is known as back pay. The gap for discrepancies between the amount an employer paid to an employee and what an employer was required to pay which stated in the contract or offer letter of employee is filled by it.

Most often it is claimed in wrongful termination cases. Hourly or salary wages, overtime, bonuses, and commissions are included as additional cases. Usually, an employer is served a penalty to pay as a result of a wage violation case.

Compensation management software can be used by organizations to ensure that employees are paid properly. This software helps managers and HR departments in managing salaries, planning employee bonuses, and recommending pay adjustments in addition to compensation packages.

Failure to pay an employee proper wages for work performed is a violation as stated in the Fair Labor Standards Act (FLSA). This may result in the affected employee or the government suing the employer. Various methods are included in the act that may be used by an employee to recover back pay. The employees can go through the state labor department to recover unpaid wages in many states. Additional compensation in damages, legal fees, or other penalties may also be included in the judgment in cases involving a lawsuit.