REMEDIES FOR UNFAIR PRACTICES; REINSTATEMENT; BACKPAY BENEFITS – Back Pay; Interest

Single Topic for Decision 2758M

View all topics for Decision 2758M

Full Decision Text (click on the link to view): Full Text

In certain cases involving back pay awards, an appropriate make-whole remedy may include an order requiring compensation for increased tax liability resulting from a lump sum back pay award that covers more than one calendar year. (See, e.g., Don Chavas, LLC (2014) 361 NLRB 101, 102; Economy v. Sutter East Bay Hospitals (2019) 31 Cal.App.5th 1147, 1163-1164; Clemens v. CenturyLink, Inc. (9th Cir. 2017) 874 F.3d 1113, 1117.) Although the case before the Board did not present facts implicating so-called “tax neutralization,” it noted that PERB’s broad statutory authority to investigate and remedy violations of the MMBA empowers it to order this relief where appropriate. (p. 56, fn. 23.)