While some employers may be hesitant to hire someone who sued their previous employer, there are several reasons why it may not be an issue. When negotiating a settlement, the employee can ask that one of the terms be that the employer not speak ill of them in the future. Also, most background checks are looking for things like criminal charges and being a plaintiff in a civil suit is less likely to come up. Furthermore, if an employer does find out that a prospective employee sued their previous employer for violating their rights and then refuses to hire them based on that information, it can be grounds for a retaliation claim.