Back pay refers to any prior wages or benefits an employee is due to a new employment practice or a retroactive pay increase. For example, if an employee were to receive a promotion that comes with an increase in salary but he or she does not receive that pay raise for a month, then he or she would receive back pay in the subsequent paycheck. Sometimes businesses will be forced to provide workers with back pay due to the court order. If a court finds that a company performed wage violations, then the company will be required to give any affected employees back pay to remedy the situation. In order to ensure back pay is given, the Wage and Hour Division of the Department of Labor may get involved.
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