Settlement vs. Trial: What’s the Best Outcome for Your Case?

Navigating the decision between settlement and trial in your employment lawsuit is crucial for achieving the best outcome. Understanding the pros and cons of each option will help you make an informed choice that aligns with your goals, especially with the guidance of an experienced attorney near you.

Settlement vs. Trial: What’s the Best Outcome for Your Case?
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Navigating the decision between settlement and trial in your employment lawsuit is crucial for achieving the best outcome. Understanding the pros and cons of each option will help you make an informed choice that aligns with your goals, especially with the guidance of an experienced attorney near you.
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Discover the critical differences between settling and going to trial in your employment case. Learn how to assess your options with a skilled attorney near you, considering factors like case strength, risk tolerance, and desired outcomes to make the best decision for your situation.
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Settlement vs. Trial: What’s the Best Outcome for Your Case?

You’ve filed your case. You’ve got a great employment lawyer on your side. Now comes the big question: Should you settle—or should you go to trial?
It’s one of the most important decisions you’ll make in your employment lawsuit. And like most legal decisions, there’s no one-size-fits-all answer.
Whether you're pursuing a case for wrongful termination, discrimination, retaliation, unpaid wages, or denied benefits, the right outcome depends on your goals, your risk tolerance, and the strength of your case. In this post, we’ll break down the difference between settlement and trial, the pros and cons of each, and how to work with your lawyer near you to make the best call.
 
💡 For every post in this series, scroll down to “Related Posts.”

What Is a Settlement?

A settlement is an agreement reached between you and your employer—usually through negotiation or mediation—before your case ever reaches trial (or sometimes even before it’s filed in court). In exchange for dropping your claim, your employer agrees to pay you a negotiated amount of money or provide another form of relief (e.g., reinstatement, reference letter, benefit continuation).
Settlements can happen:
  • Before filing a formal complaint
  • During the discovery process
  • After depositions
  • On the eve of trial
The majority of employment lawsuits—up to 95%—settle out of court.

What Is a Trial?

A trial happens when settlement isn’t possible and your case proceeds to court. Your attorney presents your evidence before a judge or jury, who ultimately decides whether your employer is liable and what compensation you’re entitled to.
A trial can result in:
  • Back pay
  • Front pay
  • Compensatory damages
  • Punitive damages
  • Attorney’s fees
It’s the most formal and time-intensive way to resolve your case—but it can also result in larger awards and public accountability.

Pros and Cons: Settlement vs. Trial

Let’s compare both options head-to-head.

Settlement: Pros

  • Faster resolution (often within months)
  • Lower legal costs
  • Less stress and emotional toll
  • Guaranteed payout
  • Private agreement (often confidential)
  • You control the outcome

Settlement: Cons

  • Potentially lower payout than a trial verdict
  • No formal finding of wrongdoing
  • Employer may not admit fault
  • Often includes non-disclosure agreements (NDAs)

Trial: Pros

  • Larger potential payout
  • Public accountability for employer misconduct
  • Precedent-setting outcomes (in rare cases)
  • Moral satisfaction for some plaintiffs

Trial: Cons

  • Takes longer—sometimes years
  • Higher stress and emotional toll
  • Higher legal fees (even if contingency)
  • Unpredictable outcome—risk of losing

What Factors Should Influence Your Decision?

Strength of Your Case

Do you have strong documentation, witness testimony, and legal precedent on your side? Your lawyer will help you assess your odds.

Risk Tolerance

Can you handle the emotional and financial uncertainty of a trial? If not, a settlement may give you peace of mind.

Timing and Urgency

Need compensation quickly? Settlement may be the faster option.

Employer’s Willingness to Settle

Some companies want to settle quietly. Others dig in and refuse any deal. Your lawyer’s negotiation skills play a big role here.

Your End Goal

Are you looking for justice, closure, compensation, or all three? Settlements offer speed and security. Trials offer public vindication—but no guarantees.

Can You Start With One and Pivot to the Other?

Absolutely. Many cases start with trial preparation but settle along the way. In fact, preparing for trial often gives your lawyer more leverage in settlement talks.
You’re not locked into one path—your strategy can evolve. The key is having a smart, adaptive lawyer near you who knows how to pivot and maximize your outcome.

What Does Your Lawyer Recommend?

Ultimately, your attorney’s advice is gold. They’ve seen what works, what fails, and how juries respond. Listen closely when they:
  • Compare offers against your damages
  • Assess legal risk
  • Advise when to push for more or walk away
See also: What Happens After You Hire an Attorney? The Legal Process Explained for a full breakdown of how decisions evolve during a case.

Real Talk: Bigger Isn’t Always Better

It’s tempting to chase a dramatic trial win. But for most plaintiffs, the best outcome is a fair settlement that reflects your losses and gives you closure without years of stress and uncertainty.
And remember—many settlement amounts are just as high (or higher) than trial verdicts when negotiated well. That’s why choosing the right lawyer near you matters more than anything.

Final Thoughts: Your Case, Your Decision

There’s no shame in settling—and no weakness in going to trial. The best outcome is the one that meets your goals, your needs, and your future.
With the right employment attorney by your side, you’ll never feel pressured either way. You’ll have facts, strategy, and options—and you’ll know exactly when it’s time to close the deal or keep fighting.
Let ReferU.AI connect you with a top-rated employment lawyer near you who knows how to win both in courtrooms and at the negotiating table.
 

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