Demand Letter and Response Time
We usually begin by sending a demand letter to the employer. Negotiations then follow and typically take around three months. However, the employer’s response time is not always within our control, so the process can take longer.
Representation
The employer may retain a lawyer or choose to proceed without one. In practice, negotiations tend to move more efficiently when the employer has legal representation.
Compromise
Both sides make concessions with the goal of reaching a mutually acceptable resolution. In an average negotiation, each party makes 1-5 offers.
Terms of Settlement and Release
Once the parties agree on terms, the employer’s lawyer drafts the settlement agreement and full and final release. We then review it together in detail and request any necessary changes.
Timing of Payment
After the agreement is signed, the industry standard is that the employee is paid within 30 days, though in some cases payment may take up to 45 days.
Legal Fees
Employers will often agree to allocate a portion of the settlement towards legal fees, as part of the settlement agreement. This allows you to avoid paying legal fees out of pocket and can provides significant tax advantages, if the payments are structured correctly. For example, rather than paying the full amount to you, your lawyer will receive full amount, so your lawyer will be paid the legal fees first and you will receive the remainder, giving you an immediate pre-tax benefit.
