How Much Does an Employment Lawyer Cost?

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 How Much Does an Employment Lawyer Cost?

The idea of hiring a lawyer often brings to mind large sums of money that must be spent. One often imagines having to spend their life savings defending a lawsuit. Then individuals often wonder, “How much does an employment attorney cost?” or, “How much does a labor attorney cost?”

The good news is that this is not often the case. Attorney’s fees are often very reasonable. In many cases, an attorney is willing to work with a client on their payments if they know the client cannot afford to pay at one time.

An employment lawyer helps to ensure that employees are treated fairly and that their employers do not violate any laws. Employment lawyers typically handle many legal issues related to employment, which may include:

An employment lawyer cost varies greatly and depends on many factors related to the circumstances of the case, the lawyer’s skills, and the location. In general, there are three different types of fee schedules that attorneys use. These are: 

  • Hourly rates; 
  • Contingency fees; and 
  • Flat fee.

Many attorneys charge an hourly rate for handling employment cases if their client is the employer. The average hourly cost for an attorney’s services is $100 to $400 per hour, which varies depending on their location and experience level.

It is important to be aware, however, that some attorneys charge as much as $1,000 per hour. Because of this, it is essential to discuss the hourly rate an attorney charges prior to hiring them for a case.

In some cases, if an attorney charges an hourly rate, they also charge a retainer fee. A retainer fee is a fee which is paid in advance and is based on the attorney’s hourly rate.

A retainer is similar to a down payment, as future fees and costs are deducted from that amount. Once the amount is used, the hourly rate will apply. In most cases, a retainer fee is non-refundable. 

In many cases, an attorney will charge a contingency fee when their client is an employee. A fee that is contingent means that the attorney does not charge a specific amount. 

Instead, in this type of fee arrangement, the attorney will be paid a percentage of the damages awarded at the end of the case, if they prevail. “Contingent” means “depending upon”, meaning that the amount the attorney will be paid is dependent upon the outcome of the lawsuit.

 In this type of billing arrangement, the attorney does not charge a regular hourly fee. The percentage that the attorney will receive varies depending on the state and the details of the arrangement. 

A contingency fee may range from 5% to 50% of the damages award. However, in most contingency fee arrangements, the attorney will receive one-third of the settlement or judgment amount. 

It is important to be aware that a contingency fee percentage can be negotiated between the attorney and the client. It is also important to be aware that, although the attorney does not receive payment until the case is won, the client may still be responsible for case related up-front fees. These may include:

  • Court filing fees;
  • Discovery costs;
  • Expert witness fees; and
  • Other overhead fees required to complete the case.

Another type of fee arrangement some attorneys use is the flat fee. If the case is a more simple one, the attorney may charge a flat fee, or one amount, to complete their work on the cases. Types of cases where a flat fee is commonly used include:

  • Simple wills;
  • Uncontested divorces;
  • Power of attorney; and
  • Certain minor criminal cases.

What Factors are Used in Calculating Employment Lawyer Fees? 

As noted above, there are many factors that are used when calculating employment lawyer fees and answering the question, how much does an employment lawyer cost. A veteran attorney in a large city will charge a higher fee or a higher contingency fee percentage than a new lawyer in a small town. In addition, there are other factors, including:

  • The type of representation; 
  • The services that will be performed; and
  • The fee arrangement.

The type of representation is a large component of the cost. The more complex the case, the more likely it will cost more and the contingency fee percentage will increase. This also applies if a simple and routine matter has been complicated by an aggravating factor or circumstance.

The more services the attorney will be providing, the more the cost or contingency fee percentage will rise. In some cases, the attorney will bundle certain services to keep the cost lower. 

The fee arrangement is also a major factor in the cost of an attorney. The overall cost will vary depending on whether the attorney:

  • Bills on a contingency fee plus an hourly basis;
  • Charges a flat fee; or
  • Is retained and provides advice on an as-needed basis.

If an individual has a strong case and is likely to prevail with a lucrative outcome, they may have stronger bargaining power regarding fees. The factors that are considered when determining a fee include:

  • The amount of time and the effort the attorney has to put into the case;
  • How difficult the case will be;
  • What skills are required to properly perform the legal services;
  • The fees that are normally charged in the same location for similar legal services by attorneys with similar skills, reputation and experience;
  • How large the requested damages are in the lawsuit and what the results obtained, which is a factor if an individual has agreed to a contingency fee; and
  • If the rate is fixed or contingent.

What Other Costs are Associated with Employment Lawsuits? 

There are other costs which may be associated with employment lawsuits. This is especially true for the employer.

If an employer is not successful in their case, they may be required to pay:

  • Their attorney’s fees;
  • The employee’s attorney’s fees; and
  • A settlement amount to the employee.

The amount an employee is awarded may increase if they file their case in federal court. Having an employment attorney review company documentation is the best way to avoid a costly employment lawsuit.

What Do Employment Law Attorneys Do?

Employment lawyers, as noted above, ensure employees are treated fairly under the law and ensure employers meet all requirements. An employment lawyer advises employers and employees regarding both state and federal employment laws.

Employment lawyers can assist with many employment related issues. For example and employment lawyer can:

  • Draft and review employee handbooks;
  • Assist with wage law rights and issues;
  • Represent an employer before the Equal Employment Opportunity Commission (EEOC); 
  • Provide guidance on employees’ rights; and
  • Determine if an employee’s rights have been violated. 

What are the Advantages of Hiring an Employment Lawyer?

There are many advantages to hiring an employment lawyer. For an employee, it is important to remember that many companies have lawyers on staff to handle employment related cases. 

It may be difficult and intimidating to go up against a corporation or a business without the help of an attorney. Attorneys will be aware of requirements and rules that an average employee would not. 

Employment attorneys can also provide great advantages to employers. An attorney can review handbooks, contracts, and any other documents and ensure the employer is in compliance with all requirements in order to avoid future legal conflicts.

Should I Hire an Employment Lawyer? 

Yes, it is essential to have the assistance of an experienced employment lawyer whether you are an employee facing a dispute with your employer or are an employer looking to avoid future conflicts. An employment attorney can provide many services which will help you resolve a dispute with your employer or help ensure your business is successful.

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