back pay

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, 2005, a jury award on January 1, 2007 would encompass 2 years of "back pay." The majority, but not all, employment practices liability insurance policies include "back pay" within their definitions of "covered damages."