Do Employment Lawyers Work on Contingency?
Most employment lawyers who represent employees work on a contingency fee basis, meaning you pay no attorney fees upfront and the lawyer only gets paid if your case results in a settlement or court award. This fee structure exists because employment discrimination, harassment, and wrongful termination cases can be expensive to litigate, and employees who have just lost their jobs or experienced workplace harm should not face financial barriers to seeking justice.
How Contingency Fees Work in Employment Cases
Under a contingency fee arrangement, the attorney agrees to represent you in exchange for a percentage of the recovery — typically between 33% and 40%, depending on the complexity of the case and the stage at which it resolves. If your case settles before litigation, the percentage is usually at the lower end. If the case goes to trial, the percentage is typically higher to reflect the additional time and risk the attorney has invested.
You pay nothing if your case does not result in a recovery. The attorney absorbs the risk of losing and receiving no compensation for the work invested. This aligns the attorney’s financial incentive with yours — both of you benefit from achieving the highest possible recovery.
What About Litigation Costs?
Contingency fee arrangements cover attorney fees, but litigation costs are a separate category. Costs include filing fees, deposition transcript charges, expert witness fees, copying and mailing expenses, and mediation fees. Different firms handle costs differently — some advance all costs and deduct them from the recovery, while others require the client to pay costs as they arise. At the Lacy Employment Law Firm, we discuss cost arrangements transparently during the initial consultation so you understand the financial terms before committing.
Fee-Shifting Statutes in Employment Law
Many employment statutes include fee-shifting provisions that require the losing employer to pay the employee’s attorney fees if the employee prevails. This is a significant advantage in employment cases because it means your attorney fees may be paid by the employer on top of your damages recovery.
Fee-shifting statutes that apply in Pennsylvania and New Jersey employment cases include Title VII of the Civil Rights Act, the Americans with Disabilities Act (ADA), the Age Discrimination in Employment Act (ADEA), the Fair Labor Standards Act (FLSA), the Family and Medical Leave Act (FMLA), the Pennsylvania Human Relations Act (PHRA), the New Jersey Law Against Discrimination (NJLAD), and the Philadelphia Fair Practices Ordinance.
When fee-shifting applies, your contingency fee may be calculated on your damages recovery while the employer separately pays your attorney’s reasonable fees. The specifics depend on the fee agreement and the outcome — your attorney will explain how fee-shifting affects your particular arrangement.
When Employment Lawyers Charge Hourly Instead
Contingency fees are standard for cases involving clear damages — discrimination, harassment, wrongful termination, and wage claims where there is a quantifiable financial loss. However, some employment law services are typically billed hourly. These include reviewing and negotiating employment contracts before you start a job, reviewing non-compete agreements, providing advice on workplace situations that have not yet resulted in an adverse action, and negotiating severance packages (though some firms handle these on contingency when the stakes are high enough).
Hourly rates for employment lawyers in the Philadelphia market typically range from $250 to $600 per hour depending on the attorney’s experience level and the firm’s overhead structure.
Questions to Ask About Fees During Your Consultation
When you consult with an employment lawyer, ask these questions to understand the financial arrangement clearly. What is the contingency percentage and does it change based on when the case resolves? Who pays litigation costs and when? How does fee-shifting affect the arrangement? Are there any circumstances where you would owe fees if the case is unsuccessful? How will settlement offers be communicated and who makes the final decision?
A reputable employment lawyer will answer these questions directly and provide a written fee agreement that spells out all terms before you commit.
The Lacy Employment Law Firm’s Fee Structure
The Lacy Employment Law Firm handles most employment cases — including discrimination, harassment, wrongful termination, wage violations, FMLA violations, and retaliation claims — on a contingency fee basis. You pay no fees unless we recover compensation for you. This allows employees who have been wronged at work to access experienced legal representation regardless of their current financial situation.
We serve employees across Philadelphia, Pittsburgh, and New Jersey.
Start with a free consultation to discuss your case and fee arrangement. Call (215) 515-5924 or submit the contact form on this page.
