Before an employment case goes to trial, a California superior court will often order a mandatory settlement conference. Someone with full authority to settle has to attend in person for the company, and the employer must serve a written statement with a good faith settlement offer at least five court days ahead. Unlike private mediation, the conference is run by a judge or court-appointed officer, and mediation confidentiality doesn’t apply. Preparing for it like a mini trial usually gets a better result.
When does the court order a settlement conference?
Whenever the court chooses, or when a party asks. Under California Rules of Court, rule 3.1380(a), “On the court’s own motion or at the request of any party, the court may set one or more mandatory settlement conferences.” Many courts set one shortly before the final status conference and trial date.
Who has to attend for the employer?
The people who can actually say yes. Rule 3.1380(b) requires that “Trial counsel, parties, and persons with full authority to settle the case must personally attend the conference, unless excused by the court for good cause.” It adds that “If any consent to settle is required for any reason, the party with that consensual authority must be personally present at the conference.”
For an insured employer, that often means a claims representative from the EPLI carrier as well as a company officer. Sending an HR manager who has to call someone for approval is a common way to annoy the judge and waste the day. If the decision-maker truly can’t attend, ask the court to excuse attendance in advance rather than arriving without them.
What must the settlement conference statement include?
Four things, served at least five court days before the conference. Rule 3.1380(c) requires a demand from the plaintiff, “An itemization of economic and noneconomic damages by each plaintiff,” “A good faith offer of settlement by each defendant,” and “A statement identifying and discussing in detail all facts and law pertinent to the issues of liability and damages.” Local rules may add more.
The defense statement is an advocacy document. A judge who reads a clear, element-by-element explanation of why the employee’s claims are weak, with deposition cites, will often press the employee’s side harder.
| Requirement | Rule | What it means for the employer |
|---|---|---|
| Personal attendance | Rule 3.1380(b) | An officer and, if insured, the carrier, with real authority |
| Written statement | Rule 3.1380(c) | Due five court days before, with a good faith offer |
| Not a mediation | Rule 3.1380(d) | The court can’t appoint someone to mediate under this rule |
Is what’s said at the conference confidential?
Not the way mediation is. The advisory committee comment to the rule notes that the special mediation confidentiality protections of the Evidence Code “expressly do not apply to settlement conferences under this rule.” Offers themselves still have protection: Evidence Code section 1152(a) makes an offer to compromise, and “any conduct or statements made in negotiation thereof,” inadmissible to prove liability. But the employer shouldn’t treat the conference as a private mediation. Private mediation is covered in the firm’s post on mediating employment cases.
How does the conference fit with other settlement tools?
It’s often the last structured chance before trial costs climb. Employers frequently pair it with a statutory offer to compromise, which can shift costs if the employee does worse at trial. That tool is covered in the firm’s post on section 998 offers in employment lawsuits. The case value at the conference should account for the employee’s possible fee award, which in FEHA cases can rival the damages.
How should an employer prepare?
Treat it as a deadline, not a formality.
- Confirm the litigation hold is still in place, since a failed conference means trial is next.
- Calendar the statement deadline five court days out, and tell the EPLI carrier the date so a representative with authority attends.
- Identify the company officer who will attend and agree on the settlement range before the day.
- Pull the deposition excerpts, key documents, and damages analysis the statement will rely on.
- Talk to trial counsel about the realistic verdict range, defense costs through trial, and the employee’s likely fee claim.
Settlement strategy before trial is part of the firm’s work in California workplace litigation defense.
Settlement conference questions employers ask
Can the company attend remotely?
Sometimes. Many courts now allow remote appearances, but the rule’s default is personal attendance by people with full authority, and individual judges set their own expectations. Check the court’s order and the department’s rules, and ask in advance if a remote appearance is needed. Assuming it’s allowed and being wrong can lead to sanctions or a rescheduled conference.
Does the employer have to make an offer?
Yes. The rule requires a good faith offer of settlement from each defendant in the written statement. Good faith doesn’t mean a large number. A defense that believes the case has little value can make a modest offer and explain why in the statement. What courts dislike is a statement that skips the offer or treats the conference as pointless.
What happens if the case doesn’t settle?
The case goes forward to the final status conference and trial. The conference still has value: the employer learns how a neutral judge sees the case and what the employee’s lawyer really wants. Offers made there can be revisited before trial, and many employment cases settle in the days that follow, once both sides have heard a judge’s view.
If your employment case has a settlement conference date
If your company has been ordered to a mandatory settlement conference in a discrimination, retaliation, or wage case, the written statement and the people in the room usually shape the outcome. Rosenberger + Kawabata represents employers defending employment lawsuits and claims through its business litigation practice, including claims involving pretrial settlement of employment cases. Contact Rosenberger + Kawabata online for a confidential consultation, or call (310) 894-6921.
Sources
The governing rule is California Rules of Court, rule 3.1380, including its advisory committee comment. Settlement-offer evidence is governed by Evidence Code section 1152.
This post is general information about California and federal employment law as of November 7, 2026. It is not legal advice, and reading it does not create an attorney-client relationship. Employment statutes, regulations, and court decisions change often, and the outcome of any claim depends on its facts. Past results do not guarantee future outcomes.