You don't say where your family member worked, but regardless, the employer cannot force the employee to waive the ability to pursue damages caused by the employer's negligence. If he indeed was injured as a result of work related activities, and bed bug related problems may be hard to prove, he should pursue a worker's compensation claim which include medical expenses and lost wages.. There would have to be excessive or "gross" negligence for your family member to pursue any additional damages.
Robert E. Heyman, Esq.
He can't be forced to sign anything. Google "Bed Bugs Lawyer" to find a lawyer concentrating in bed bugs.
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Your family member has a work comp claim but must act immediately, and they may also have a retaliatory discharge claim for being terminated due to an injury on the job. They may also have other claims such as Disability discrimination, Family Medical Leave violations, and possibly a claim for Social Security disability benefits. Have them email me to discuss this further.