Please ensure Javascript is enabled for purposes of website accessibility

Employment – Discrimination – tax-component award

By: WISCONSIN LAW JOURNAL STAFF//January 30, 2015//

Employment – Discrimination – tax-component award

By: WISCONSIN LAW JOURNAL STAFF//January 30, 2015//

Listen to this article

U.S. Court of Appeals For the Seventh Circuit

Civil

Employment – Discrimination – tax-component award

The district court properly awarded a prevailing employee an increased award to compensate him for his increased tax burden.

“Today, we join the Third and Tenth Circuits in affirming a tax-component award in the Title VII context. Upon Miller’s receipt of the $43,300.50 in back pay, taxable as wages in the year received, see IRS Pub. No. 957 (Rev. Jan. 2013), available at www.irs.gov/pub/irs-pdf/p957.pdf, Miller will be bumped into a higher tax bracket. The resulting tax increase, which would not have occurred had he received the pay on a regular, scheduled basis, will then decrease the sum total he should have received had he not been unlawfully terminated by Hospitality. Put simply, without the tax-component award, he will not be made whole, a result that offends Title VII’s remedial scheme. See Williams v. Pharmacia, Inc., 137 F.3d 944, 952 (7th Cir. 1998) (‘We have noted previously that “the remedial scheme in Title VII is designed to make the plaintiff whole.”’ (quoting McKnight v. General Motors Corp., 908 F.2d 104, 116 (7th Cir. 1990))).”

Affirmed.

14-1660 EEOC v. Northern Star Hospitality, Inc.

Appeal from the United States District Court for the Western District of Wisconsin, Crabb, J., Kanne, J.

Full Text

 

Polls

Should Steven Avery be granted a new evidentiary hearing?

View Results

Loading ... Loading ...

Legal News

See All Legal News

WLJ People

Sea all WLJ People

Opinion Digests