Drafting Settlement Agreements in Employment-Related Litigation
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Learn how best to draft settlement agreements in employment related litigation to ensure that both parties' objectives are reached.Employment-related litigation is not going away, and typically increases in times of high unemployment. Whether frivolous or meritorious, there is often a strong desire by both sides to settle matters. Sometimes coming to agreement is the easy part; memorializing the agreement is not. This material will walk through numerous issues involved in drafting settlement agreements in employment-related litigation, including sample language, pitfalls, legal considerations and proper tax treatment, with the object being to ensure that the written document meets the parties' objectives in reaching a settlement.
Authors
William Hays Weissman, Littler Mendelson P.C.Agenda
Drafting Issues and Specific Provisions
• The Use of Recitals
• Understanding Claims and Allocating Damages
• Confidentiality and Non-Disparagement Provisions
• Releases
• Liquidated Damages for Breaches
• Other Typical Clauses
Taxation of Settlements
• Wages
• Compensatory Damages
• Penalties
• Attorneys' Fees
Class Actions and PAGA Actions
• The Pros and Cons of Qualified Settlement Funds
• Court Approval
Other Issues
• Strategic Considerations and Timing of Settlements
• Bankruptcy