Retroactive benefits or "backpay" are monthly benefits that a claimant may be entitled to before the month he actually applied for benefits, if he meets the requirements. "Back pay" is pay you receive in one payment for actual employment performed at an earlier time. Back pay under statute is payment that is required by law, such as the National Labor Relations Act, the Fair Labor Standards Act, and other Federal and State laws. The purpose of back pay is to create an employment relationship or to protect employees' rights to receive wages.