A Practice Note describing strategies for negotiating a severance or settlement agreement in a single plaintiff employment dispute from the employer's perspective. This Note focuses on the employer's business considerations, the reasons for settlement, key employer agreement terms, strategies for responding to common employee demands, and other best practices. This Note addresses federal law but flags common state law issues that employers must consider. For state-specific resources, see Settling State Law Employment Disputes Toolkit and Employment Claims in Release Agreements: State Q&A Tool.