Steps For Developing A Settlement Strategy For Employment Claims

Every time a current or former employee threatens or brings legal action, in-house counsel faces the question: Should we litigate or settle?

But the question often is not as straightforward as it seems. If you forego an early settlement, will the company incur significant defense costs only to settle for a larger amount later? Will a settlement with one employee invite similar claims from others? Which cases merit a full-throated defense as a matter of principle?

While it is common to approach each case on an ad hoc basis, legal departments would be wise to invest the time to develop a more comprehensive strategy for when to settle, and when to go to the mat in litigation, that is in line with the company's broader goals and values.