Attorneys charge for their services in a variety of ways.  We use flat fees, hourly fees, contingent fees and hybrid arrangements, depending on the nature of the case.  Our most common fee arrangement for litigation is a combination of hourly and contingent fees.  See the sample fee agreement on this website.
     A contingent fee agreement (the kind typically used in personal injury cases) allows the client to obtain representation without having to pay out money while the case is ongoing.  In return for the delay in payment and the risk of getting nothing, the attorney typically charges a contingent fee that exceeds his or her usual hourly rate.  In employment cases, this type of fee is seldom offered because employment cases are typically very complex and difficult to resolve, and they often drag on for years.
     Hourly fees are always an acceptable arrangement for most lawyers but usually too expensive for most clients, especially the typical employment plaintiff, who has been fired, demoted or financially impaired in some way.  The cost of litigation on an hourly fee basis is sure to run into the tens of thousands of dollars, and typical hourly rates for attorneys run from $100 to $300 or more per hour.
     We have developed a hybrid arrangement that offers clients the advantage of reduced rates during litigation while preserving the incentive for us to strive for the maximum recovery.  Our reduced hourly rate, typically $50.00 per hour, is not contingent on the outcome of the case.  If we succeed in recovering a substantial settlement, the hourly fees paid during the litigation are a credit against the contingent fee, which will be the highest of: one third the gross amount of settlement, or $200.00 per hour up to fifty percent of the settlement, or the amount awarded by the court after a successful trial.  Some examples will illustrate how this arrangement works.
     Example 1:  Attorney spends 50 hours litigating the case, which then settles for $25,000.  During the lawsuit, client pays $50 per hour, which totals $2,500.  The contingent fee is $200 per hour which totals $10,000.   After crediting the $2,500 already paid, attorney takes $7,500 out of the settlement.
     Example 2:  Same as above, except the case settles for $50,000.  The contingent fee is one third the gross settlement, or $16,666.   After giving credit for the $2,500 already paid, attorney takes $14,166 from the settlement.
     Example 3:  Same as above, except that the settlement amount is $15,000.  At $200 per hour, the fee would exceed one half the gross settlement amount.  Because of the cap of fifty percent, the contingent fee is $7,500.  After giving credit for $2,500 paid, attorney takes $5,000 from the settlement.
     Example 4:  Same as above, except the case is not settled but tried to a verdict of $15,000.  Court awards $20,000 in fees.  The fees are more than fifty percent of the gross amount recovered, but since they were awarded by the court the fifty percent cap does not apply.  Contingent fee is $20,000.  After giving credit for $2,500 already paid, attorney takes $17,500.
     Costs and expenses are separate from attorney fees.  These items must ultimately be paid by the client.  Our firm usually expects the client to pay expenses as they are incurred.  Some common costs and expenses are listed in the sample fee agreement.
     The most significant expenses of litigation are usually deposition costs and expert witness fees.  To take a traditional deposition, an attorney needs to pay a court reporter to attend and take down testimony.  In addition, the court reporter will charge for transcribing the testimony.  Even if the opposing party takes the deposition and pays for the original transcript, the cost of a copy can be several hundred dollars.
     Expert witnesses can include medical doctors, psychologists, economic loss and vocational rehabilitation experts, statisticians, questioned document examiners and a host of other forensic specialists.  They must be paid to write reports, give testimony at deposition and trial, conduct experiments and research, review records, evaluate individuals and give opinions within their areas of expertise.  They typically charge fees that are as much as or more than lawyers' fees.
     As a matter of common sense and good practice, we never incur deposition or expert witness expenses without discussing the expense with the client.  You should never be reluctant to ask about these or any expenses connected with your case.