News & Analysis as of

Settlement Agreements Employment Litigation

JAMS

Are Emotional Distress Damages in FEHA Settlements Taxable?

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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

Husch Blackwell LLP

The Labor Law Insider: NLRB Does a U-Turn on Make-Whole Settlement Remedies, Part II

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Host Tom Godar welcomes back to the show Husch Blackwell attorney Mary-Ann Czak for the second installment of a two-part discussion on a recently published memorandum from William Cowen, Acting General Counsel of the National...more

McAfee & Taft

New NLRB guidance emphasizes need for ‘prompt and fair’ settlements in unfair labor practice disputes

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Settlements of unfair labor practice charges appear to be returning to more traditional standards under new guidance from Acting General Counsel of the National Labor Relations Board William B. Cowen. Unfair labor practice...more

Husch Blackwell LLP

The Labor Law Insider: NLRB Does a U-Turn on Make-Whole Settlement Remedies, Part I

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Host Tom Godar welcomes back Husch Blackwell attorney Mary-Ann Czak for a two-part discussion on a recently published memorandum from William Cowen, acting general counsel of the National Labor Relations Board (NLRB). The...more

Cranfill Sumner LLP

NC Court Clarifies That Prior Settlement Does Not Preclude New Workers’ Comp Claim for Subsequent Injury

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In Collins v. Wieland Copper Prods., LLC, _____ N.C. App. ______, 910 S.E.2d 373 (2024), the Court of Appeals held that a prior settlement agreement with an employee for a prior work injury did not bar the employee from...more

Seyfarth Shaw LLP

How the Latest NLRB Guidance Helps Employers Resolve Disputes

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Newly issued guidance from the NLRB encourages efficient resolution of labor disputes, giving employers more flexibility in crafting resolutions to reach practical compromises in appropriate cases. The memorandum also...more

Proskauer - Labor Relations Update

NLRB Pulls a U-Turn on Remedial Relief in Settlement Agreements: New GC Issues Guidance Encouraging Efforts at Settlement

On May 16, 2025, the National Labor Relations Board’s (“NLRB”) Acting General Counsel, William B. Cowen, issued Memorandum GC 25-06, titled “Seeking Remedial Relief in Settlement Agreements,” that significantly loosens the...more

Husch Blackwell LLP

The NLRB’s Top Lawyer Offers New Guidance on Remedial Relief in Settlement Agreements

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Settling cases before the National Labor Relations Board (NLRB) became an increasingly difficult task under the prior administration, where the terms of agreements were often dictated by General Counsel directives insisting...more

Jackson Lewis P.C.

Withdrawal Liability: Third Circuit Paves New Path for Pension Funds to Collect from Affiliated Employers

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Holding a settlement agreement was a revised withdrawal liability assessment, the U.S. Court of Appeals for the Third Circuit rejected a group of dairy companies’ petition to dismiss a pension fund’s claim to enforce a $39...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

New York Federal Court Ruling Highlights a Potential Pitfall in Settlement Agreement Enforcement

On January 8, 2025, the U.S. District Court for the Eastern District of New York held that an employee’s refusal to sign a confidentiality and nondisparagement acknowledgment form annexed to a settlement agreement resolving...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

Proskauer - Trade Secrets

EV Trade Secrets Litigation Series: Tesla and Rivian Resolve High-Stakes Legal Clash Over IP

After getting the green light to proceed to a trial in March of 2025, Tesla and Rivian have reportedly reached an agreement to settle their trade secret dispute out of court. Tesla and Rivian officially filed for dismissals...more

Littler

Ontario, Canada Appellate Court Provides Guidance to Employers on How to Draft Employment Settlement Documents

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The Court of Appeal for Ontario found that settlement documents signed after an employee separated from employment prevented him from suing for the value of vested stock options....more

Sheppard Mullin Richter & Hampton LLP

NLRB Will No Longer Approve Employer Proposed Consent Orders

As we have previously reported, from the time President Biden took office, the National Labor Relations Board (“NLRB” or the “Board”) began systematically reversing Trump-era policy, and shifting toward pro-union and...more

Mandelbaum Barrett PC

New Jersey Supreme Court Invalidates Non-Disparagement Provision Against Alleged Victim of Discrimination and Harassment

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In Savage v. Township of Neptune, et al., (A-2-23, decided May 7, 2024), the New Jersey Supreme Court analyzed and invalidated a non-disparagement provision included in a settlement agreement against a plaintiff alleging...more

Skadden, Arps, Slate, Meagher & Flom LLP

UK Employment Flash

In this issue we discuss the new Labour government’s proposals to strengthen protections for employees; an Employment Appeal Tribunal decision that affirmed that an employee’s waiver of future claims that were unknown at the...more

Fisher Phillips

Snap Reaches $15M Settlement Over Alleged Equal Pay Violations: Why the Deal Might Be a Sign of What’s to Come for All Employers

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Snapchat’s parent company has agreed to pay $15 million and take extensive measures to ensure fair employment practices as part of settlement to resolve claims of discrimination, harassment, and retaliation against women at...more

Carlton Fields

Alabama Federal Court Seals and Approves FLSA Settlement Agreement, Addresses Confidentiality Provision

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The plaintiff was employed by defendant Pilot Catastrophe Services Inc. as an insurance claims adjuster, where she was responsible for inspecting property damage claims and providing damage estimates to insurance companies....more

Saiber LLC

New Jersey Supreme Court Holds That Non-Disparagement Provisions Seeking to Preclude Discussion About Claims of Discrimination,...

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In a recent unanimous decision, the New Jersey Supreme Court held that non-disparagement provisions in settlement agreements or employment agreements are against public policy and unenforceable if they seek to bar speech...more

Foley & Lardner LLP

Utah Enacts H.B. 55, Impacting the Use of Confidentiality Clauses in Employment Settlement Agreements

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On March 13, 2024, Governor Spencer Cox signed House Bill (H.B.) 55 into law, making Utah the latest state to restrict the use of certain nondisclosure and non-disparagement agreements relating to sexual assault or sexual...more

BCLP

UK HR Two Minute Monthly: January 2024

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Our January update includes a new Court of Session case giving (a degree of) certainty on settlement agreements prohibiting future unknown claims and a new case on constructive dismissal focusing on the rules around delaying...more

Mayer Brown

The unknown unknowns: settling future employment claims in the UK

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The well-known interview comment above was made by former US Secretary of Defence, Donald Rumsfeld. While he was referring to matters of national security more than 20 years ago, the question has often arisen in the context...more

Littler

Court Holds Backup Withholding Required by Law Does Not Violate a Settlement Agreement

Littler on

In Escano v. Innovative Financial Partners, LLC, a magistrate judge held that the defendants’ decision to withhold funds from a payment required under a settlement agreement when the plaintiff refused to provide a Form W-9...more

Tannenbaum Helpern Syracuse & Hirschtritt LLP

New York State Voids Employment-Related Releases in Settlement Agreements with Common Provisions

Effective November 17, 2023, New York law was amended to void releases of discrimination, harassment and/or retaliation claims if the settlement agreement has certain common provisions regarding confidentiality,...more

Kelley Drye & Warren LLP

Attention New York Employers: New Prohibitions for Settlement Agreements Resolving Discrimination Claims

Effective November 17, 2023, Governor Hochul signed a new law impacting settlement agreements resolving claims of harassment, discrimination and retaliation. The new law, S4516 amends Section 5-336 of the New York General...more

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