Advertisement
 

Other News

BRIEFLY

November 27, 1991|From Times Staff and Wire Reports

Back Pay to Discrimination Victims Ruled Taxable: People awarded back pay to settle discrimination claims must pay income taxes on the money, a federal appeals court ruled. The court rejected arguments by Cleveland B. Sparrow Sr. that the $92,300 settlement he received from the Navy was a non-taxable damage award to compensate for a personal injury--racial discrimination. Instead, the court said, "It represents back wages which, although belatedly received, are nevertheless income" and thus must be taxed.

Advertisement
Los Angeles Times Articles
|
|
|