Payment of a Back Salary Award (salary payment covering a time period that an employee was removed from the payroll) may result from the terms of a Court Order, Arbitrator’s Award, Human Rights, GOER or Grievance Settlement, or Civil Service Commission Action. Any ordered settlement must conform with the statutes and rules and regulations regarding salary entitlement.

Agencies should not calculate salaries or amount of gross pay for the purpose of entering those figures in the provisions of the Award. Possible discrepancies between those amounts and the calculations of OSC can cause a delay in final disposition of the Award. If an agency receives an Award ordering reinstatement and payment of Back Salary, a Job Request should be submitted placing the employee back on the payroll and paying salary only from the date that the employee actually returned to work.

For instructions on processing the payment for all Back Salary Awards, contact your OSC Payroll Auditor as soon as the determination has been received.

Refer to Payroll Bulletin 1217, Issued 05/23/13

The Order and affidavit from the employee stating whether or not he or she received unemployment benefits or salary from outside employment should then be directed to your OSC Payroll Auditor. Unemployment must be deducted from the net Award and a check drawn to reimburse the Division of Unemployment Benefits Account.

If the employee’s position is designated Management/Confidential or is assigned to the Administrative, Operational or Institutional Services Unit or Division of Military and Naval Affairs Unit or Security Services/Supervisors Units, any earnings received from outside employment during the period covered by the Award does not have to be deducted.

If the employee’s position is assigned to any other negotiating unit, then the outside earnings must be deducted from the gross Award.