When settling, consider adding a ‘no return’ clause — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

When settling, consider adding a ‘no return’ clause

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Sometimes, it may seem like a good idea to simply settle a case and move on—especially if the case is taking up lots of time.

Before you agree to a settlement amount, consider whether you really want the employee to stay with your organization. It will no doubt cost more to get a resignation and the employee’s promise never to apply for future openings, but that may be a price worth paying.

Recent case: Roland Johnson, who is black, worked for the U.S. Postal Service and claimed he had been denied a promotion because of his race. The post office agreed to settle for $90,000.

Shortly after the settlement, Johnson claimed he was being retaliated against. He quit and sued.

Eventually, the case was dismissed, but not until the post office spent time and money defending the case. (Johnson v. Potter, No. 04-CV-6634, WD NY, 2009)

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