Supreme Court of the United States
Social Security Board v. Nierotko
February 25, 1946327 U.S. 358
Summary
The Court held that back pay awarded under the National Labor Relations Act is wages under the Social Security Act because it is remuneration arising from the continuing employer-employee relationship, even though the employee performed no productive work during the period of unlawful discharge. The Court further held that the back pay must be allocated to the periods when the wages would ordinarily have been paid, rather than solely to the date of actual payment. The Social Security Board's contrary interpretation exceeded permissible administrative authority, and the judgment below was affirmed. Justice Frankfurter, concurring, emphasized that enforced idleness may still constitute service and that the Board lacked unreviewable authority to exclude legally defined wages.
Holding
- Whether back pay awarded for an unlawful discharge constitutes wages under the Social Security Act.. Back pay is wages because it is remuneration paid in connection with the continuing employer-employee relationship, and the statutory term service encompasses the entire employment relationship for which compensation is paid, not merely productive work actually performed.
- How back pay must be allocated for Social Security Act coverage and benefits.. Back pay must be allocated to the periods when the regular wages would have been paid and were not paid as usual, rather than being credited only in the quarter of actual payment.
- Whether the Social Security Board's contrary administrative interpretation controlled the statutory meaning of wages.. The Board's interpretation excluding back pay was not conclusive and exceeded the permissible limits of administrative interpretation because the statute's meaning and the boundaries of the agency's authority are judicial questions.
Docket 318
Cited authorities
- 49 Stat. 622
- 53 Stat. 1362
- 49 Stat. 622
- 53 Stat. 1376
- 49 Stat. 450
- 49 Stat. 454
- 53 Stat. 1369
- 49 Stat. 454