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Damages: A Tax Break for Plaintiffs Raises Interesting Issues

The Third Circuit recently delivered a significant clarification on economic damages in employment matters. In <i>Eshelman v. Agere Systems Inc.</i>, the court held that plaintiffs in employment-discrimination suits may recover for the negative tax consequences of receiving a lump-sum award for back pay.

17 minute read October 26, 2009 at 10:58 AM
By
Chad L. Staller And Stephen M. Dripps
Damages: A Tax Break for Plaintiffs Raises Interesting Issues

The Third Circuit recently delivered a significant clarification on economic damages in employment matters. In Eshelman v. Agere Systems Inc., 554 F.3d 426 (2009), the court held that plaintiffs in employment-discrimination suits may recover for the negative tax consequences of receiving a lump-sum award for back pay.

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