How Much Does an Employment Attorney Cost? Contingent Fees Guide

Important: We updated this article in March 2025 after reviewing federal and state laws regarding employment attorney fees. Thinking about suing your employer for wrongful termination, harassment, discrimination, or wage theft? If so, you probably want to know: How much does an employment attorney cost? Will you have to pay a retainer fee? And do employment law attorneys offer a free consultation if I’m a potential client?

Get answers to common questions from people seeking legal representation for an employment law case below.

How Much Does an Employment Attorney Cost: Key Takeaways

• All plaintiffs in employment law cases pay for legal representation through contingency fee arrangements. That means your employment lawyer charges $0 for legal services if your case does not win. Instead, he or she will only receive payment for successful claims in which the employer pays you a financial settlement.
• Defendants, on the other hand, usually pay through hourly fee agreements. Larger employers often have skilled legal representation working in-house or on retainer. So, if you happen to be the employer and not the employee, contingency fee arrangements will not apply to your case.
• You can get a free consultation to discuss your employment law case before you decide what to do next. This initial consultation doesn’t require you to do anything else, including work with an employment lawyer at all.
• Not sure where to find an employment lawyer in your state? Our national network of law firms means that we can likely match you with someone based on your current ZIP code for free.
• Many attorneys will not discuss your legal matter with you (at least, not for free) if you already have legal representation. They’d have to split the same legal fee with your first attorney, and that reduces their pay amount by 50% each.

What to Expect From An Employment Attorney Initial Consultation

First, it’s important to know every employment attorney in our network offers free, no-obligation consultations. These consultations start online or with a phone call, so you don’t have to worry about putting yourself at risk.

Once we match you with an attorney for your free consultation, what happens next? Lawyers that work on contingency typically only accept cases they strongly believe they will win. So if you don’t have an especially strong case or you missed your deadline to file, the lawyer will tell you that. In fact, this is the main reason for employment attorney consultations: Seeing whether or not you have a valid case. Once you’re done reviewing your case, choosing whether or not to move forward is entirely up to you.

What Types of Legal Disputes Do Employment Attorneys Handle?

You might think an employment lawyer is the right person to handle workers’ compensation claims or deaths on the job. However, that’s a common mistake. Employment lawyers do not handle claims involving a workplace injury, death, or illness. Instead, think about how your employer (and coworkers) treat you on the job, and then you’re on the right track:

• Discrimination. Did your employer treat you differently because of your gender, religion, race, ethnicity, age, or sexual orientation? If you belong to a protected class, that’s always illegal.
• Harassment. Did your supervisor or someone you work with talk down to you or engage in unwanted sexual contact? You may have a valid employment law case.
• Retaliation. Were you wrongfully terminated for reporting a safety hazard at work or filing a workers’ compensation claim? This may violate federal law.
• Lost wages and unpaid overtime. Does your boss make you clean after you clock out, or ask you to run job errands on your lunch break? If so, this may violate the Fair Labor Standards Act (FLSA).

How Much Does an Employment Lawyer Cost if They Don’t Work on a Contingency Fee Basis?

Not every experienced employment lawyer uses a contingency fee agreement, but most do. Here are some other billing structure examples that apply only to defendants in employment law cases vs. going through a contingency fee contract:

However, only a government agency or employer will ever have a legal fee structure that isn’t based on contingency representation. As long as you are the person filing the claim, that makes you the plaintiff. And that means you’ll always pay contingency fees, not hourly or a flat fee.

How the Billing Structure for Contingency Fee Arrangements Usually Work

Once you decide you’re ready to file your claim, how much does an employment attorney cost if you’re the plaintiff? It varies by state and firm, but in most cases, it’s around 25%-40% of your final settlement amount. Employment lawyers that negotiate an out-of-court settlement typically charge closer to 30%. But if you have a complicated case or insist on going to trial, 40% in contingency fees is more likely. That’s because going to trial takes much longer to resolve your claim (around two years) and incurs higher litigation costs. However, if your employment lawyer negotiates and out-of-court settlement, you’ll resolve your case in potentially half that time.  

How Much Does an Employment Attorney Cost if I Lose My Case?

Wondering what happens if you lose your case after it goes to trial, or your attorney can’t reach a settlement? If you don’t win, then you owe your lawyer $0 in legal fees. You’ll only pay contingency attorney fees after you win a cash settlement. Maybe now you’re thinking you can negotiate a settlement on your own without using a lawyer. Most people who attempt this — even with seemingly clear-cut claims — do win their cases. Many companies now require settling such disputes through mediation or arbitration.

Other Potential Costs Your Case Might Incur Other Than Contingency Fees

Okay, so we covered contingency fees and that you will pay $0 to law firms for losing claims. But there are other potential expenses that may apply in certain cases, which we explain below.

Expert Witness Fees

Lawyers may call in expert witnesses to testify on your behalf, depending on the type of employment case you file. For example: If you say your boss engages in wage theft, your attorney may call on a forensic accountant to review the company’s books.

Paperwork Filing Fees

This is by far the most common fee you may owe in an employment case outside of contingency fees. Simply put, federal and state courts charge filing fees to accept, log, and track the paperwork involved in your employment case. You will likely pay lower filing fees for a state court case than a federal one, for example.

Travel Expenses

If your attorney must travel for a deposition or court hearing in your case, then you may owe additional fees. How much does an employment attorney cost when it comes to things like hotel stays and mileage reimbursement? Don’t sign the attorney-client agreement without getting a clear picture of these costs.

Court Reporter Fees

If you have to give a deposition in your case, you may pay for a court reporter or videographer to record your sworn statement. This money pays for them to prepare a transcript or video to submit in court.

Employment Lawyer vs. Arbitration: Settlement Amounts, Case-Win Rates & Resolution Times

Still not sure whether you can afford to have an employment attorney handle your case? Here’s some statistical data that might help you decide:

• A 2005 study found the average employment discrimination settlement won through arbitration (not a lawyer) was $54,651/person
• Just 525 out of 17,000 employment discrimination cases in that study went to trial (i.e., 3.4%)
• Around 70% of similar cases with lawyers were settled out of court
• A 2011 study shows employees that try to settle through arbitration win just 21.4% of their cases
• Lawyers win 46% of employment discrimination claims overall (57% in state courts, 36.4% in federal courts)
• Employment discrimination settlement amounts negotiated by lawyers in 2007 paid claimants $236,292 each, on average
• Average discrimination settlements won through arbitration in 2007 paid claimants $109,858 each, on average
• Arbitration cases typically settled in about 362 days; trial-based litigation took nearly two years to complete, on average
• Cases settled out of court through an employment lawyer usually get resolved in 284 days or less

Employment Law Attorneys Can Also Give You a Free Case Evaluation to Help You Decide

So, you’ll get up to 51% more money in a cash settlement through an employment attorney, even after legal fees. Plus, out-of-court settlements usually pay plaintiffs three months faster than those that people resolve through arbitration. You’re also 2x more likely win a settlement if a lawyer handles your claim vs. trying to go it alone through arbitration.

When Is Filing a Wrongful Termination Case Worth It?