A source line bias error caused by a voltage drop in a source line of a non-volatile memory device during a read or verify operation is addressed. In one approach, a body bias is applied to a substrate of the non-volatile memory device by coupling the substrate to a source voltage or a voltage which is a function of the source voltage. In another approach, a control gate voltage and/or drain voltage, e.g., bit line voltage, are compensated by referencing them to a voltage which is based on the source voltage instead of to ground. Various combinations of these approaches can be used as well. During other operations, such as programming, erase-verify and sensing of negative threshold voltages, the source line bias error is not present, so there is no need for a bias or compensation. A forward body bias can also be compensated.

 
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