Why Mediate?

Picture this: The mail arrives one day, and in it you find what every employer dreads—a demand letter. One of your former employees has retained an attorney, is claiming they were wrongfully terminated, and is now threatening to take legal action. The demand letter outlines all sorts of crazy false allegations, demands an insane amount of money, and your first instinct is to call the employee’s bluff and put the letter through the shredder.

Wait! You may never have this opportunity again. This is your chance to find out more information about the allegations, to evaluate the claimant and their counsel, to test your side of the facts, and to possibly resolve the matter for the lowest possible figure before fees and costs rise exponentially. In short, you have a chance to mediate the dispute.

What is mediation? Mediation is a private service, conducted by a neutral and experienced third party, aimed at resolving a conflict prior to initiating legal action. Mediators do not make any binding decisions about the matter; their role is to facilitate communication and help move the parties from opposite ends to a place of compromise and agreement.

While the primary goal of mediation is often the full resolution of the conflict, there are many other benefits to mediation that make it worthwhile even if settlement is not reached. These benefits include:

• A preview of the claimant and their allegations;
• An opportunity to confidentially test drive your client and your facts without the pressure of the court process;
• A neutral and experienced third party’s fresh perspective and insight into the strengths and weaknesses of the different sides;
• Honest feedback for your client about potential weaknesses in your client’s position;
• Tools to facilitate settlement, such as a mediator’s proposal, or a high/low agreement; and
• Pre-litigation mediation often results in a lower settlement figure because attorneys’ fees have not yet accumulated.

Even if a case does not settle, mediation is rarely a waste of time or resources. Let Meyers Nave help you navigate mediation as an important tool in your compliance toolbox.

Connect with one of our labor and employment attorneys and let us set you up for success.

Our team is here to help you navigate California’s complex employment laws. If you have handbook questions or don’t have a handbook at all, contact us.