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What are typically the fee arrangements for an employment discrimination case?

I understand that attorneys expect a representation fee (what is average?), a percentage of the recovery (what is the average percentage?) and that, they are entitled to to get attorney fees.

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Attorney answers (2)

Reputation Level 20
Typically an employment lawyer would have a retainer agreement that provides for percentages in stages. They'd ask for something like 33% or less if a lawsuit doesn't need to be filed and this can be resolved on demand (this rarely happens), 33% after a suit is filed, and 40% or 45% or even 50% once a trial date is set. The lawyer often requires the client to pay something towards their costs (court filing fees, attorney service fees, arbitrator's fees, expert witness fees, etc. which can get very high) and often pays most of these out of pocket costs, which get deducted before the "net" recovery gets divided. These are Los Angeles guestimates, so your city's lawyers' percentages may vary.

Generally, the stronger your case and the higher your salary, the smaller the numbers that the lawyer will ask for, and converssely, the weaker and riskier your case is and the more formidable your employer is, the more your lawyer will ask for.

You should consult with several lawyers. Hire one you're comfortable with who believes in your case and whose fee agreement you understand and agree with.


Disclaimer: Please note that this answer does not constitute legal advice, and should not be relied on, since each state has different laws, each situation is fact specific, and it is impossible to evaluate a legal problem without a comprehensive consultation and review of all the facts and documents at issue. This answer does not create an attorney-client relationship.
1 person marked this answer as good
Kenneth Lewis Swenson
Kenneth Lewis Swenson, licensed in California

Reputation Level 10
There is a very interesting "wrinkle" to California employment law though. There are many, many "fee-shifting" laws and it is quite often the case that you can get an award of reasonable attorney's fees from the Defendant if and when you prevail.
Talk to your attorney about this and have a written agreement about how to handle the money for purposes of the retention.
Some lawyers "gross up the proceeds" and take their cut on the full amount. Suppose for example only you get an award of $100,000 for lost wages, discrimination, emotional distress, etc. and then your lawyer applies for his fees FROM THE DEFENDANT and the court awards $150,000 in fees.
How is this going to be divided up? Set out an example in writing or you will regret not doing this!
The simplest way is to have the percentage (33% to 50% is the range) apply to the gross amount and in our example this would mean that you each get $125,000.
If you are not careful the attorney could possbly want his 50% from the $100,000 and ALL of the fees awarded by the court so in our example you get $50,000 and the lawyer gets $200,000.
Sort this out NOW before you hire an attorney. Put it in writing! Keep it simple!
Good luck.
1 person marked this answer as good
Kenneth Lewis Swenson
Kenneth Lewis Swenson, licensed in California

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