Employment Litigation Growth And The Potential For Structured Settlement Brokers

The structured settlement industry continues to be strong and remains a reliable way to help provide claimants with long-term financial security. In recent years, opportunities within the taxable structured settlement market, which focuses on non-physical injury cases, have expanded significantly. While many are familiar with structured settlements for physical injury cases, the taxable structured settlements segment is accelerating in its growth and relevance.

Key findings from our market research

To better understand the size, scope, and emerging opportunities within the taxable structured settlement market, our research team has conducted extensive interviews with attorneys, mediators, and other experts, supplemented by several leading legal market studies. Our findings clearly indicate substantial untapped potential - particularly within the employment litigation arena.

A wave of cases creates massive potential

Employment litigation has seen a marked rise over the past several years.

• In 2023, employment related claims generated $21.5 billion in overall legal services revenue.¹
• Individual employment litigation settlement values totaled approximately $2.9 billion in 2021.²

Among all segments, employment discrimination has been the primary driving force behind the overall growth.² In FY 2024, 88,531 workplace discrimination charges were filed with the U.S. Equal Employment Opportunity Commission (EEOC).³

Significant workforce changes in recent years have contributed to this increase, as organizations adjust to evolving workplace expectations and labor dynamics. While COVID-19 initially caused a spike in disputes, its share of overall employment litigation has since declined.⁴ Early in the pandemic, lawsuits related to workplace safety and compliance with evolving regulations were quickly emerging alongside other employment challenges.⁴ Now, as workplaces have settled into a post-pandemic reality, the data shows a shift: litigation is now dominated by claims tied to discriminatory practices, wrongful termination, sexual harassment and retaliation.¹

It is also well-documented that only a small percentage of employment litigation cases go to trial. Lex Machina's analysis of 67,177 district court employment cases that were terminated from 2020 to 2022 found that a vast majority were resolved with a likely settlement or on procedural grounds (58,320 cases, or 87% altogether), including 48,972 cases (73%) categorized as likely settlement and 9,348 cases (14%) resolved procedurally.⁴

This environment presents an opportunity to help claimants and their advisors reach more successful outcomes through taxable structured settlement solutions.

Recommendations for reaching the taxable structured settlement market

The data highlights the significant untapped potential in employment litigation. Here are a few strategies that you can use to expand your reach in the employment litigation market:

• Position taxable structured settlements as a powerful negotiation tool. These solutions can help accelerate resolution while reducing the risks, costs, and uncertainty of trial—offering a win‑win outcome for both claimants and defendants.
• Deepen your understanding of how taxable structured settlements add tax efficient outcomes in employment litigation cases, including attorney fees, compensatory damages, and punitive damages.
• Visit metlife.com/nqa for slipsheets, product guidelines, videos and additional resources to support your efforts.

Tap into the growing taxable structured settlements market

Now more than ever, taxable structured settlements - particularly in employment litigation represent a valuable opportunity to support stronger outcomes for all parties involved. As employment related disputes continue to rise and most cases ultimately resolve before reaching trial, there is increasing demand for solutions that can help streamline negotiations, reduce uncertainty, and deliver long-term financial security for claimants.

As the first on-shore, U.S.-based company to offer taxable structured settlements, and as a leader in the structured settlements space, we provide the resources, expertise and support you need to successfully integrate these solutions into your practice or business approach.

Still have questions about taxable structured settlements? For more information, visit our NQA webpage, or contact a sales team member.