Definition of Back Pay | Outstanding Employee Payment

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Back Pay Definition

Term Definition
Back pay refers to the difference in payment made to the employee and the amount to which the employee is lawfully entitled. Back pay can be a missed payment or intentionally withheld by the employer. For more information, please consult the Dept. of Labor

Extended Definition
Any outstanding employee payment for work performed prior to the present pay period is known as back pay. It can also be defined as the difference in payment made to the employee and the amount the employee should have been paid by the employer. The unpaid amount can be overtime wages, minimum wages, bonuses, or increments. The employer may also withhold payments willfully. Salaried employees, hourly workers, part-time employees, freelancers, and consultants are all entitled to back pay. The provisions for recovering back pay are listed under the FLSA (Fair Labor Standards Act). Consult the Dept. of Labor for more information.

Related Article:
Recovery of Back Pay Under the FLSA Law

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