Tax Issues in Employment Mediations

There is surely nothing wrong with preparing a term sheet instead of a formal agreement at the end of mediation. However, it can be a huge mistake to ignore tax issues.

9 minute read May 26, 2011 at 11:14 AM

Robert W. Wood And Joel M. Grossman

It is 9 p.m. After 12 brutal hours of mediation, the parties have finally reached an agreement. The former employee who had claimed wrongful termination will receive $100,000 in exchange for dismissing his lawsuit and executing a general release in favor of his former employer.

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