Do I get a QBI for a legal settlement?

I'm assuming you received a 1099-NEC for the back wages and you did not mark the entry that it should have been reported on a W-2.  Without this designation, TurboTax thinks you are a contractor with self-employment income.

To correct your 1099-NEC entry please follow these steps in TurboTax Online:

1. Within your return in TurboTax Online search for Schedule C.
2. Click the Jump to Schedule C link in the search results.
3. If you get to a self-employment summary screen, delete the self-employment income line with the trash can icon.
4. If you get to the question Did you have any self-employment income or expenses? answer No. 
5. Click on Tax Tools on the left side of the screen.
6. Click on Delete a Form. 
7. Scroll down to your Schedule C and Schedule SE and click Delete if they are still there.
8. Search for 1099-NEC and select the Jump to link.
9. Enter your 1099-NEC according to the form you received and click Continue.
10. On the Describe the reason... screen enter "Award/Bonus"
11. Choose XXX employer reported this extra money on a 1099-NEC but it should have been reported on a W-2 and click Continue.
12. On the Filing Form 8919 screen click None of the Above (because your 1099-NEC and W-2 are not from the same company) and click Continue.
13. Continue through the interview and follow the instructions.

You will need to file Form SS-8 according to the instructions separately from your tax return.