How much does an employment lawyer typically cost?

An employment lawyer typically costs nothing upfront in discrimination, harassment, and retaliation cases, because most handle them on contingency, taking roughly 33% to 40% of a recovery. Hourly rates for employment attorneys in the Philadelphia and New Jersey markets commonly run from about $250 to $600 per hour, and flat fees apply to narrow tasks like reviewing a severance agreement. Freundlich & Littman, LLC represents employees facing discrimination and harassment in Pennsylvania and New Jersey, and this guide explains how each fee model works so you can compare it to any quote you receive.

The Four Fee Structures Employment Lawyers Use

Employment attorneys price work in four ways. Which one applies depends on whether you are the employee or the employer, and on what you are asking the lawyer to do.

• Contingency fee: No payment unless you win a settlement or judgment. The lawyer takes a percentage of the recovery. This is standard for wrongful termination, discrimination, harassment, and retaliation claims brought by employees.
• Hourly fee: You pay for time spent, billed in increments (often 0.1 hour). Common for employer-side work, contract disputes, and some employee matters where damages are hard to measure.
• Flat fee: A fixed price for a defined task, such as reviewing an employment contract, a non-compete, or a severance offer.
• Retainer: An upfront deposit placed in a trust account and drawn down against hourly billing. Used mostly in business and executive matters.

Fee Models Compared

How Contingency Fees Work in Practice

A contingency agreement is a written contract that states the percentage and when it changes. A common structure is 33% if the case settles before a lawsuit is filed, and 40% once litigation begins. Some agreements step up again at trial. Read the tier language closely, because the difference between 33% and 40% on a $150,000 settlement is $10,500.

Two details change what you actually keep:

1. Gross versus net calculation. If the percentage is taken from the gross recovery and expenses are deducted afterward, you keep less than if expenses come out first. On a $100,000 settlement with a 33% fee and $6,000 in costs, gross-first leaves you $61,000. Net-first leaves you about $62,980.
2. Case expenses. Filing fees, deposition transcripts, expert witnesses, and mediation charges are separate from the fee. The agreement should say whether you owe them if you lose.

Freundlich & Littman, LLC handles employee discrimination and harassment matters, which are the kinds of claims where contingency arrangements are most common. Ask any firm, ours included, to put the fee percentage, expense treatment, and tier triggers in writing before you sign.

What Hourly Rates Look Like in the Philadelphia and New Jersey Markets

Rates vary with experience and firm size. Associates at smaller firms often bill at the lower end of the $250–$600 range, while senior partners and specialists in executive compensation bill at the top. Paralegal time is billed separately, usually well below attorney rates.

A single-plaintiff employment case that runs through discovery and depositions can consume hundreds of hours. That is why hourly billing is rarely practical for an individual employee with a discrimination claim, and why contingency dominates that field. Hourly billing makes more sense when you want a defined, limited task or when the dispute is about a contract rather than a damages award.

What Drives the Total Cost Up or Down

• Stage of resolution. Cases that settle through an agency charge or demand letter cost far less than cases tried to a jury.
• Agency process. Discrimination claims generally start with the Equal Employment Opportunity Commission, the Pennsylvania Human Relations Commission, or the New Jersey Division on Civil Rights. Filing with these agencies carries no fee.
• Number of witnesses. Each deposition adds transcript and attorney time.
• Experts. Economists, vocational experts, and medical providers in emotional distress claims charge by the hour or by the report.
• Documentation. Organized emails, performance reviews, and a written timeline reduce attorney hours and strengthen the claim.

Costs When You Are the Employer

Businesses defending an agency charge or lawsuit almost always pay hourly, since a contingency fee makes no sense for a defendant. Budget for an early response to the charge, document collection, and possible mediation. Many employers also carry employment practices liability insurance, which may cover defense costs, so check your policy and notify the carrier promptly, since late notice can jeopardize coverage.

Questions to Ask Before You Hire

1. Is the fee contingent, hourly, flat, or a retainer?
2. What percentage applies at each stage, and when does it increase?
3. Is the percentage calculated before or after expenses?
4. Who pays expenses if the case is lost?
5. What happens to the fee if you switch lawyers mid-case?
6. Does the agreement cover appeals?

Warning Signs in a Fee Agreement

Be cautious of an agreement that charges a nonrefundable "case acceptance" fee in a contingency matter, leaves expense responsibility undefined, or gives the firm authority to settle without your approval. Settlement decisions belong to you. A fee agreement should also explain how liens, such as unemployment overpayment or health insurer reimbursement, are handled from the recovery.

Time Limits Matter More Than Fees

Cost should not delay a claim, because filing deadlines are short. A federal discrimination charge with the EEOC generally must be filed within 180 days of the act, extended to 300 days in states with their own agency, which includes Pennsylvania and New Jersey. New Jersey's Law Against Discrimination allows a two-year window to sue in court. Missing a deadline can end a claim no matter how strong the facts are.

Employment Lawyer Cost FAQ

Do employment lawyers charge for a first meeting?

Many plaintiff-side employment lawyers do not charge for an initial case evaluation, while employer-side and contract-focused lawyers often charge their hourly rate. Confirm the policy before you schedule.

What percentage do employment lawyers take?

Contingency percentages typically fall between 33% and 40% of the recovery. The higher figure usually applies once a lawsuit is filed or the case reaches trial.

Can I afford an employment lawyer if I was fired and have no income?

Yes. Contingency representation in discrimination, harassment, and retaliation cases requires no upfront legal fee, so lost income does not block you from pursuing a claim. Case expenses are handled according to your written agreement.

Is it cheaper to file with the EEOC without a lawyer?

Filing a charge costs nothing, but the process has strict deadlines and your statement shapes the entire case. A poorly framed charge can limit the claims you can bring later.

Who pays the lawyer if I win?

In a contingency case, the fee comes out of your recovery. Some discrimination statutes also allow a court to order the employer to pay a winning employee's attorney fees, which can increase the total recovery.