As explained by Shannon P. Duffy at Law.com, the Third Circuit Court of Appeals in Eshelman v. Agere Systems Inc. ruled that plaintiffs who win in employment discrimination cases can seek an additional award to compensate for the tax consequences of receiving a lump sum backpay award. This is because of the "make whole" remedial purpose of the anti-discrimination statutes. Not all courts might rule the same, though, since there is what lawyer's call a "split in the circuits" which might, some day, necessitate the Supreme Court's answering the question.