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Employment Litigation Settlement Agreements Income Taxes

JAMS

Are Emotional Distress Damages in FEHA Settlements Taxable?

JAMS on

In California FEHA settlements, plaintiffs often recover damages for both emotional distress and lost wages—but how are those payments taxed? Employers often compel an allocation in damages between wages (economic loss) and...more

Shook, Hardy & Bacon L.L.P.

Tax Considerations for Settlement Negotiations

Settlements in the employment law context can set up thorny tax issues for employers. In this alert, we will discuss two key issues companies should consider when working toward a settlement agreement: the deductibility of...more

BCLP

UK HR Two-Minute Monthly: Settlement agreements, vanishing dismissals for gross misconduct, (lack of) mitigation and general news...

BCLP on

Our December update includes new case law on a very unusual take on taxing payments under settlement agreements, how difficult it can be to withdraw an appeal and stop a dismissal from vanishing, and the consequences, even if...more

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