Wrongful Termination Settlement

When a worker has been laid off or fired, and thinks it to be unjust, he may file a wrongful termination suit against his former employer. While some of these cases have to be decided by a judge (or sometimes an independent arbiter), most are settled out of court. This is generally because the cost of litigation can be costly—both monetarily and emotionally—for both sides. The wrongful termination settlement is thus the mutually agreed upon severance package that the former employee will receive. It will include some or all of the following: severance pay that is based at least in part on tenure with the company, and continued health care coverage. In return, the former employee submits to a confidentiality agreement, and he may agree not to go to work for a competitor in the same industry.

Fast Facts

  • Roughly 96% of wrongful termination lawsuits are settled out of court. Only 3% are decided by a jury.
  • In two thirds of the wrongful termination cases in the California Court of Appeals, the defendant had won in the lower court.

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