Akron Wrongly Taxed Worker’s Settlement Funds, Lawsuit Says

Akron, Ohio, owes a nonresident a refund for municipal taxes it withheld from a wrongful termination settlement she reached with her former employer, a new lawsuit alleges.

Karen Kresevic, who lives in Chagrin Falls, reached a confidential agreement with her Akron-based employer, Alteon Health, after she was terminated in 2020. Akron withheld municipal taxes from the settlement payment, citing a temporary state law that allowed municipalities to tax the income of telecommuters working remotely for in-city employers due to the Covid-19 pandemic.

Kresevic sued Akron’s tax commissioner in the Summit County Court of Common Pleas Thursday, arguing the ...