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Should you settle your employment law claim?

On Behalf of | Jun 11, 2025 | Employment Law |

Once you file a claim related to employment law, whether it is based on harassment, discrimination, retaliation or violation of overtime laws, you will eventually reach a point where you must decide if you will settle the case or proceed to trial. Knowing when it is time to settle is important.

Many employment law cases settle before they get to trial. Employers sometimes want to avoid the negative publicity a lawsuit brings and the longer the case proceeds the more they must pay in legal costs.

Deciding whether to settle is a difficult decision. It is natural to want the vindication and feeling that justice has been served that a trial can potentially bring.

However, getting the outcome you want at trial is not guaranteed. This does not mean that you should accept the first settlement offer from your employer, but there are some factors to consider before deciding.

Review the evidence

Consider your evidence objectively and realistically. Your confidence in your case at trial largely depends on the strength of your evidence.

If you are concerned that your evidence may not be enough to obtain a judgment against your employer, or that you will not receive as much compensation as your employer is offering, settling your claim could be a better option.

A review of your evidence should include any evidence against you. Many employers will have their own evidence to present that goes against you.

Even if your employer’s evidence will not necessarily lead to a losing outcome, remember that a trial means any evidence against you will become public. A win at trial could still leave you with a negative reputation and if other employers are aware of the case they may be reluctant to hire you.

Closely review any settlement offers

A settlement offer that is close to what you seek at trial is sometimes worth taking compared to risking everything at trial. Many times, you will not secure a more favorable result at trial if your employer is already offering you most of what you are asking for.

Additionally, taking a case to trial means additional time and money. Perform rough calculations to determine if the extra cost is worth it.

A lawsuit against your employer is likely to be mentally and emotionally taxing. If your employer’s settlement offer is something you can live with, even if it is not what you ultimately hoped it would be, accepting it might be best for your mental health.

Accepting a reasonable settlement in lieu of going to trial means that you can put this chapter of your life behind you and focus on moving forward.

You should also consider what going to trial means. You will need to appear in court and testify against a former employer. Think carefully about whether putting yourself through that stress is worth it, especially if your employer’s offer is close to what you are asking.

Suing an employer or former employer is a challenging experience. Remember that a “win” sometimes means settling, but only after careful consideration.