January 2011 - National Labor Relations Board

10130 SUBSTANCE OF SETTLEMENT AGREEMENT10128.7 Contact with Charging PartyThe Regional Office should keep the charging party apprised of the status ofsettlement efforts. The Regional Office should also inform the charging party of theadvantages of settlement as well as other factors, as set forth below:The Regional Office’s representative should discuss with the chargingparty the scope of the allegations deemed meritorious, the theory and thestrengths and weaknesses of the case. It is particularly important that thecharging party understands the scope and the limitations of the remedies tobe sought in litigation.Alleged discriminatees should be encouraged to provide full, complete,and accurate interim earnings information.An individual entitled to reinstatement under the General Counsel’s theoryof the case should not be pressured in any way to waive reinstatement,since reinstatement is one of the most effective remedies available underthe Act. Of course, for a variety of reasons, individuals may elect towaive reinstatement in response to a settlement offer from a charged party.10130 Substance of Settlement Agreement10130.1 GenerallySince settlements are as varied as the circumstances of cases, the principlesappearing in this subsection are offered as guidelines.Issues involving reinstatement; computation of backpay, interest, deductions andwithholdings; and lump sum settlements are substantially the same as those encounteredwhen dealing with compliance with formal Board or court decisions and orders.Accordingly, substantially the same principles described in the Compliance Manualshould be applied.Unless the amount of interest is set forth in the agreement, both formal andinformal settlement agreements that provide for interest on backpay should include thefollowing:Interest shall be added to [here insert backpay, dues, feesand/or assessment, as appropriate] to be computed in themanner set forth in New Horizons for the Retarded, 283NLRB 1173 (1987), plus daily compound interest as set forthin Kentucky River Medical Center, 356 NLRB No. 8 (2010).Revised 01/11