Earlier this year, MetLife conducted a survey of employment lawyers to learn their views on structuring settlements. Here are the highlights.
- Most employment lawsuits are settled out of court. Of those surveyed, 86 percent said that structured settlements can be a good negotiating tool and speed up claim resolution/settlement.
- 81% were concerned that clients would deplete a lump sum settlement award too quickly.
- Plaintiff attorneys always or sometimes encourage clients to meet with a tax attorney (86%) financial advisor (86%), certified public accountant (80%) and structured settlement brokers (73%) to discuss their settlement award.
- 86% of plaintiff attorneys say they should be the ones to make the structured settlement recommendation to the client. When recommended by the attorney, 89% say their clients have decided to structure their award.
The main reasons plaintiff attorneys recommend structures for their client according to the survey:
- Guaranteed payments,
- Allows some immediate cash with steady long-term payments,
- Won’t deplete the plaintiff’s award quickly,
- Increases the value of the settlement with guaranteed annual income to cover the loss of the plaintiff’s job; covers monthly expenses,
- Provides tax-efficient payments/reduces taxes.
The entire survey results are here.
To review the numbers for a specific case or to discuss structured settlement benefits for employment cases including wrongful termination, wage disputes, harassment and discrimination, call me at 949-355-4726.
Pat Farber
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