If you are pro se trying to settle on a OT Wage claim why would the opposing counsel demand to hold 35 to 40 percent in withholdings let alone a 25 percent wh on just fed taxes is this a trick?

Answer 1

Just because he is "demanding" it doesn't mean the arbitrator or judge will grant his request. He may be trying to convince you that it may not be monetarily worth your while to pursue the case aainst his client. Nonetheless - if you win the case - even if the money is withheld - if it is in excess of the tax requirements, you can file an amended tax return and receive it as a refund from the government.

Answer 2

The opposing counsel may be requesting the withholdings as a way to ensure that any settlement reached covers any potential tax obligations or other deductions. It is not necessarily a trick but a common practice to manage liabilities associated with settlements. However, you may negotiate with them to lower the percentage or discuss alternative arrangements.