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Court says taxes on awards in discrimination cases are recoverable as damages.

Publication: Trial
Publication Date: 01-JAN-03
Format: Online - approximately 814 words
Delivery: Immediate Online Access
Full Article Title: Court says taxes on awards in discrimination cases are recoverable as damages.(Washington )

Article Excerpt
Even when plaintiffs in employment discrimination cases win, they sometimes lose. But not if they live in Washington state.

The federal tax consequences of a large settlement or award can mean plaintiffs end up paying more in taxes than they received as compensation for alleged workplace bias.

The Washington Court of Appeals ruled in October that a woman who sued her employer for violating the state's antidiscrimination law and won could recover an additional amount from the defendant to offset taxes on the award and on attorney fees. (Blaney v. Int'l Ass'n of Machinists & Aerospace Workers, 55 P.3d 1208 (Wash. Ct. App. 2002).)

Only a few other courts in the country have ruled similarly, but plaintiff lawyers say Blaney may...

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