What You Need to Know About Wrongful Termination Lawyer Costs
Understanding the potential costs and fees can help a former employee find the right wrongful termination lawyer. Here’s what to know about the cost of a wrongful termination lawyer.
The average wrongful termination lawyer costs around $100-$350 per hour, but the total cost depends on several factors. The final total depends on the type of fees, cost, and settlement size.
Should I Hire a Lawyer for My Wrongful Termination Case?
A former employee does not need a lawyer to handle a wrongful termination case. However, studies reveal the assistance of a lawyer often increases the likelihood of receiving a larger settlement. $100-$350 per hour is expensive, but experienced legal representation is often the difference between a small and large settlement.
Types of Lawyer Fees
An employment lawyer can charge different types of fees to handle a wrongful termination case:
- Hourly fees,
- Contingency fees,
- Retainer fees, and
- Unbundling of Services.
Every attorney is different and will charge based on the type of representation the client requires. A lawyer may use a unique combination of fee types/amounts to receive compensation appropriate to the lawyer’s experience, required work, and time spent. All aspects of a wrongful termination lawyer’s fees are subject to change.
Related: Wrongful Termination Laws in California
Hourly Fees
Hourly fees describe the set amount a lawyer charges per hour of work on a client’s case. The average hourly rate sits around $100-$350, but attorneys may charge much more or less depending on the case’s circumstances. Hourly fees are well-applicable to individual services absent of vast, complex work.
Contingency Fees
Contingency fees describe when the attorney receives payment only if the client obtains monetary compensation from the case. The contingency is a percentage of the client’s total monetary compensation and commonly comprises about one-third of the settlement. However, the client is not required to pay the attorney any money if the client receives nothing from the case.
Contingency fees are a popular choice for wrongful termination lawyers due to the amount of work required to prepare for a case. The contingency fee may increase as the court date nears because the attorney has less time to prepare. A lawyer may also ask for a retainer or lump-sum fee when forming a contingency fee agreement to earn some form of payment in case the client receives no money.
Related: Wrongful Termination Statute of Limitations in California
Retainer Fees
A retainer is a fee a client pays upfront for a specified number of weekly hours, regardless of how much the lawyer works on the case. Retainers are similar to a downpayment because the client pays for professional assistance in advance.
A lawyer may charge different types of retainers depending on the situation:
- Refundable retainer,
- Retainer against hourly fees, or
- Cost retainer.
Refundable retainers award the client a credit for the payment and subtract the retainer amount from the contingency fee if the client wins or settles the case.
Attorneys often ask for a retainer against hourly fees, where a lawyer withdraws fees as they earn them and provide an accounting of the balance. The attorney will refund the unpaid balance to the client at the end of the case.
A lawyer may use a cost retainer and withdraw money from the balance to pay for non-fee expenses relevant to the case. Cost retainers are similar to retainers against hourly fees because both refund the unpaid balance to the client upon a case’s conclusion.
Unbundling of Services
Unbundling of services is a hybrid legal fee arrangement allowing a client to retain a lawyer’s services for a specific issue only. The agreement frees the client to consult alternative attorneys regarding other case issues or proceed without legal guidance. Clients may consequently use unbundling of services as a cost-effective way to save money on legal assistance. The client only has to pay the attorney to work on a specific part of the case instead of a range of services the client may not need.
FAQs About the Cost of a Wrongful Termination Lawyer
What if I cannot afford what the wrongful termination lawyer charges?
A potential client may negotiate with the attorney if the legal fees are too expensive. A client may also consult with other attorneys to find the lowest rate if a lawyer refuses to negotiate.
How do I know which legal fee arrangement is right for me?
The right legal fee arrangement depends on a client’s unique circumstances. A lawyer may desire a contingent fee agreement if the client has a strong case with high losses because the lawyer will receive a portion of the settlement. An attorney could also seek a different arrangement if the client’s evidence makes for a strong case but low damages. Every wrongful termination situation is different.
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