Back Pay Withholding

The Appellate Division held that an employer may deduct state and federal withholding taxes from back pay arbitration awards when a union employee is reinstated. The payments made as a direct consequence of the plaintiff’s employment constituted wages subject to federal and state withholding taxes.  Amalgamated Transit Union Local 880 v. NJ Transit Bus Operations, Inc., (App Div March 14, 2006). Read more