AGENCIES TO PAY REINSTATED EMPLOYEES’ BACK TAXES

Our good friends at Dewey Publications just posted a story about how MSPB will now allow reinstated employees to receive money beyond their back pay due if the lump sum raises their income taxes.  We recommend you read the Dewey post by clicking here to see how the employee got another $64,000 on top of her back pay. This decision makes it clear that arbitrators can do the same thing and that unions should pursue this remedy when grieving/arbitrating terminations, demotions,  or long suspensions. They need not specifically request it so long as they authorize the arbitrator to grant “all appropriate remedies.” If you are unfamiliar with why you do that, read through our post entitled, “Grievance Strategy Issues- Part 5 (Remedies)”