Division initiated settlements
Compiled text through Aug 15, 2022
Register checked through Jul 29, 2026
Later Register activity found — review the notice before relying on the compiled text.
Dates and status
- Compiling agency
- Executive Department
- Text status
- Source receipt
- Compiled text through
- Aug 15, 2022
- Register checked through
- July 29, 2026/Vol. XLVIII, Issue 30 (2026-07-29)
- Activity status
- Later Register activity found — review the notice before relying on the compiled text.
- Latest notice
- HRT-24-26-00008-P · Proposed rule · Jun 17, 2026
- Source snapshot
- Jun 6, 2026
(a)The general counsel, or his or her designee may, at any time after a finding of probable cause, endeavor to achieve settlement of a case by proposing a settlement to the respondent which, if agreed to by respondent, will be proposed to complainant, who must agree to such settlement proposal or reject it for sufficient reasons stated in objections. If the proposed settlement is agreed to by respondent and rejected by complainant without sufficient reasons, the case will be dismissed for administrative convenience or an equitable order will be recommended.
(b)The general counsel may, in his or her discretion, determine that a case is appropriate for a division initiated settlement. He or she shall set a settlement value for the case in the form of a lump sum dollar amount, or by such other formula as may be appropriate, and shall formulate such other terms as would provide an appropriate resolution of the case. The settlement value may be the same as an offer of settlement previously made by a party and rejected by the opposing party.
(c)After the settlement has been formulated, a letter setting forth all the proposed terms of the division initiated settlement will be sent to the respondent, along with such other information as is necessary to explain the division initiated settlement process. Respondent shall have a specified time in which to indicate whether respondent will agree to such settlement.
(d)If the respondent agrees to the terms of the division initiated settlement, then the settlement terms, and the explanation of the division initiated settlement process shall be sent to the complainant. The complainant shall have a stated time period in which to agree to the settlement or submit written objections thereto. The objections shall be specific and in detail.
(e)After consideration of complainant's objections, the general counsel shall either accept the objections and refer the case on for hearing, or shall reject the objections and provide complainant with an additional period of time to accept the settlement.
(f)If the complainant does not agree to a settlement within the allotted time, and the complainant's objections are not accepted by the general counsel, then the case may be dismissed for administrative convenience, or upon request of the respondent, the general counsel may issue a recommended equitable order, for the commissioner's consideration, providing that the respondent will pay the complainant the amount proposed in the settlement and dismissing the complaint on the merits.
(g)In determining the settlement value of the case, and the other terms of settlement to be proposed, and in evaluating the reasonableness of a complainant's objections, the general counsel shall consider, among other things, the following:
(1)the probability of success after hearing;
(2)the amount of complainant's economic loss, and respondent's degree of responsibility therefor;
(3)in appropriate cases, the evidence of the amount of complainant's mental pain and suffering;
(4)the egregiousness of the discrimination charged; and
(5)whether the public interest requires the continuation of the proceedings.
(h)The proposed division initiated settlement shall contain terms as set forth in section 465.16(b) of this Part.
(i)A successful division initiated settlement shall be confirmed by an order of the commissioner, as set forth in section 465.16(c) of this Part.
(j)The general counsel, or any other division representative, shall not disclose what has transpired in the course of attempts at division initiated settlement, except to the parties and their representatives, and except that:
(1)in those cases where the division initiated settlement attempt results in a dismissal for administrative convenience, the dismissal shall contain a recital of the proposed settlement, and the reasons that the complainant's objections to it were rejected; and
(2)in those cases that result in an order of the commissioner, the terms of the settlement may be disclosed as with any final order of the division.