Litigation & Arbitration,
Labor/Employment
Dec. 5, 2024
When back pay goes beyond the bottom line
In labor arbitration, pre-judgment interest on back pay depends on the collective bargaining agreement and arbitrator discretion, while in court, it is typically owed at a variable rate, requiring advocates to timely request and substantiate claims for interest.
Christopher David Ruiz Cameron
Justice Marshall F. McComb Professor of Law
Southwestern Law School
In the typical wrongful termination claim tried in a court of law, the prevailing employee expects to collect interest for every day that her award of backpay goes unpaid by the employer, starting on the date that she was fired and ending on the date that judgment is entered in her favor. The same expectation holds if the claim is diverted to mandatory, pre-dispute employment arbitration. Although a dispute may arise over how much interest should be paid - that is, wha...
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