United States v. Quality Stores, Inc., 572 U.S. ___, 134 S. Ct. 1377 (2014)

Before and following the filing of an involuntary Chapter 11 bankruptcy, Quality Stores and its affiliated companies terminated thousands of employees. The employees received severance payments, and Quality Stores reported those payments as wages on W-2 tax forms, paid the employer’s required share of FICA taxes and withheld the employees’

Rivera v. Baker West, Inc., 430 F.3d 1253 (9th Cir. 2005)

Jack Rivera sued his former employer, Baker Concrete Construction, Inc., for race and national origin discrimination and wrongful termination. The matter was settled for “$40,000 less all lawfully required withholdings” during a settlement conference before a magistrate judge. Baker subsequently issued a settlement check in the amount of $25,140, withholding $14,860 for federal