• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Taxes on Labor winnings

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.


Junior Member
What is the name of your state? Oklahoma

I am working with my state DOL and working on getting back pay 2400 hours of back wages for computer work i did off the clock for a company. I just started filing and DOL already is saying that I have won (based on the 2000 pages of computer code evidence). The company has violated several labor laws and will be fined 10k per violation, if I go to court. DOL claims that the company is lucky that I didn't file in federal court because the fines are much higher. DOL states I have a solid case and and is planning on awarding me double backpay (45k backpay + 45K penalties). DOL claims that the company will more than likely settle out of court in order to aviod the fines for the violations. DOL claims that I can not recover my material costs (5K), attorney fees (3K), or any punitive damages for harassment when I first was filing my claim.

Here is my questions if any one has any answers-
What are the "penalties" for that DOL is awarding me, interest on the backpay? Can I still take the company to civil court or or to recover my loses and for damages after I win the backpay in DOL court? If the company settles out of court can I ask for my extra costs and damages then? How will income tax be handled if I win in DOL court? Will I have to pay taxes if the company settles out of court? Is there any way to aviod income tax on the winnings, such as investing in an IRA? Can I still file in Federal court instead of my state DOL? And If I can ask for more than 90K in the settlement, how do I know what to ask for? (reasonalbe I believe that I could ask 200K being that the company will try to aviod the fines and can't afford a judgement from a jury civil trail after I win in DOL court)

I originally post my case on 12-24-04, looking for a discrimination suit. I thank everyone who gave me advice because my case is really looking good.

Thanx, Cybermind
Last edited:

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential