835 Interest on award

Pre-judgment interest may be awarded where the amount due, though not truly liquidated, is capable of determination by some fixed standard. In the case of discrimination awards, sec. 111.39(4)(c), Stats., provides the fixed standard for calculating back pay awards and thus, allows for the calculation of interest. [Note: Sec. DWD 218.20(4), Wis. Admin. Code, provides that interest shall be computed at an annual rate of 12 percent simple interest.] Olson v. Phillips Plating (LIRC, 02/11/92).

The Respondent’s argument that no interest should be awarded to the Complainant was rejected where the record indicated that both parties were responsible for the long delay in resolving the damage issues after the Department’s initial order. However, the interest award was reduced for a one-year period as a result of the Complainant’s attorney’s failure to submit a brief to the Administrative Law Judge after the damage hearing for a period of over one year. Olson v. Phillips Plating (LIRC, 02/11/92).

Interest on back pay is to be computed on the net back pay due, i.e., after offsets are made for unemployment compensation and other amounts received. Woolridge v. Chicago Northwestern Transp. Co. (LIRC, 08/22/86).

Where the examiner's remedial order provided for interest on the back pay award at the rate of 7 percent, and where the Commission's order affirming the examiner's decision provided for interest at the rate of 12 percent because, in the interim, the Equal Rights Division had adopted an administrative rule prescribing interest at the rate 12 percent, the court held that the Commission’s order of 12 percent interest was in error. Because the rate of interest deemed proper was 7 percent at the time the loss was incurred, at the time the complaint was filed, at the time the examiner's order was issued, and at the time the petition for review was filed, the Commission exceeded its authority in modifying the original order to impose the higher rate of interest. Glaze Dental Lab. v. LIRC (Waukesha Co. Cir. Ct., 06/03/86).

The Division has the authority to increase back pay awards to reflect accrual of prejudgment interest from the date of the employee's discharge. (Interest at the rate of seven percent per annum was awarded by the court in this case.) Anderson v. LIRC, 111 Wis. 2d 245, 330 N.W.2d 594 (1983).