What is a 'Settlement Agreement'?
The final contract that resolves your case.
A settlement agreement is a legally binding contract between you and your employer that resolves your legal dispute, usually after a successful mediation or negotiation.
Why it matters to you
This is the document that actually ends your case. It spells out every term of the resolution, including the payment amount, payment deadlines, and any confidentiality obligations. It almost always includes a release, which is your agreement to give up your legal claims in exchange for the payment.
Nothing is final without you. Your formal, written acceptance is required before any settlement is binding. We will walk you through every term before you sign, and once all parties have signed, your claims are resolved and the case is concluded.
An example from an employment case
Imagine your unpaid overtime case settles at mediation. Over the following weeks, the attorneys exchange drafts of the written agreement covering the payment, the timing, and confidentiality. You review it with us, ask questions, and sign only when you understand and accept every term. The employer signs, payment follows, and the lawsuit is dismissed.
Every case is different. Ask your legal team how this applies to yours.
Related terms
Mediation, Release, Damages, Stipulation
Still have questions? Your legal team is happy to help. Message us through the client portal or call the office, and we will point you to the right person.