Settling a case? Have plan for reinstatement.

If you settle an employee's employment lawsuit, consider how you'll handle the employee's possible reinstatement. The goal: Stay out of court with this litigious employee.

If your settlement includes the possibility of reinstatement, it's wise to include a clause that requires future complaints to be handled through arbitration.

Another option: Offer a bit more money but require the former employee to promise never to apply for a job with your organization again.

Recent case: Yvonne settled a lawsuit against her employer by accepting a monetary payment and reinstatement to her old job. The settlement also included...