The U.S. Department of Labor, among other things, enforces federal wage and hour laws. These include the overtime provisions of the Fair Labor Standards Act. When it believes employers have violated those laws, the DOL can pursue litigation on behalf of employees. Employers that don’t have the resources to litigate against the federal government frequently

While we all know that employers are required to withhold taxes from employees’ pay, it’s been unclear in California how that applies to settlements. Must the employer withhold taxes from payments for lost income (back pay or front pay)? Or can it pay the settlement proceeds without withholding and have the plaintiff take responsibility for

The goal of settlement from a defense perspective is to avoid the risks, disruptions, and expense of further litigation.  So what if you, the employer, settle claims with a plaintiff who takes the money but pursues further claims against you.  That would be, in technical legal jargon, "really bad."

One way this could happen is where the settlement attempts to resolve both civil litigation and pending