Is it a bad idea to join a class action settlement against your current employer?

[matyas]

The company I work for keeps sending me letters encouraging me to join a litigation settlement, and says I will face zero retaliation. Is doing this a bad idea?

And will future employers be able to see that I participated in this the next time I'm looking for a job?

[arrigo]

It's probably not a bad idea unless you think you can get more money in a separate lawsuit and are willing to participate in such a lawsuit. You're employer's desire to have you join the settlement is genuine because it is in the best interests of your employer.

The reason why your employer wants you to join the settlement is to reduce any undefined liability it may have for those employees that are not party to the settlement but meet the criteria for the class plaintiff. You effectively waive any further rights to bring a lawsuit against your employer for the claims brought up in the class action suit. Your employer would rather pay you the settlement money now than worry about your joining another action for the same claims in the future, which could cost it additional legal fees and an even greater payout requirement.

Unless the settlement agreement itself is filed with the court, there will probably not be any public record of your participation in the settlement, and, even if there is, this not something that typically comes up in a background check by prospective employers, and, for the aforementioned reasons, it would generally not be held against you if it did.

[chiram97]

Future employers won't see it, but any claim that you'll face zero retaliation is crap. It is possible your employer won't be thrilled with you.

[edmondo93]

Everything you do is recorded and archived by the FBI. Future employers need only ask this "watchdog of justice" what YOU have been up to lately — there goes that job.

Keep your head down, don't ask questions, take home your pay check, and for God's Sake do not join a class action.