Should plaintiffs pay taxes on attorney fees recovered in employment actions through settlement or judgment? This has been a recurrent issue in employment litigation, and one that on occasion impacts the resolution of the case. This eAlert discusses two important recent developments in the area: first, a United States Supreme Court decision that resolves a conflict among the circuits and holds that attorney fees are not excludable from plaintiff’s gross income; and, second, federal legislation,
DLA Piper Rudnick Gray Cary