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back pay

Back pay constitutes 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.

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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."