If you are thinking about calling an employment lawyer, the first worry is often money. You may have just lost your paycheck, or you may be afraid of losing it. Hiring a lawyer feels like one more expense you cannot afford. The good news is that the way employee-side lawyers are paid is built around that exact problem, and the first conversation usually costs nothing.
This guide explains the fee structures you are likely to see in New Jersey, the separate “costs” that are easy to overlook, and the questions to ask before you sign anything.
The Short Answer
There is no single price for an employment lawyer in New Jersey. What you pay depends on the type of problem you have, how much work it will take, and how the lawyer structures the engagement. A one-hour review of a severance agreement is priced very differently from a lawsuit that may last two years.
What does not vary is how you should be treated at the start. At Savo Schalk, the initial consultation is free and confidential, and you should leave that meeting understanding exactly how fees would work for your situation. If a lawyer will not explain their fees clearly, that is a reason to keep looking.
The Four Common Fee Structures
Contingency Fee
The lawyer’s fee is a percentage of whatever you recover, through a settlement or a judgment. If you recover nothing, you generally owe no attorney’s fee. This is the most common arrangement for discrimination, retaliation, harassment, and wrongful termination claims, because it allows people without savings to bring a strong case. The percentage, and how it is calculated, must be set out in a written agreement.
Hourly Fee
You pay for the time the lawyer spends, at a stated rate, usually against an upfront deposit (a retainer). Hourly billing is common for advice-based work, such as negotiating an employment contract or reviewing a non-compete.
Flat Fee
You pay a fixed price for a defined task. A lawyer might offer a flat fee to review and negotiate a severance agreement, or to review a job offer before you accept it. The advantage is predictability.
Hybrid Arrangements
Some matters combine approaches, for example a reduced hourly rate plus a smaller contingency percentage. These are less common, but they exist.
Which structure fits depends on the claim. A lawyer who takes a case on contingency is betting on the outcome, so they will evaluate the strength of the evidence and the realistic value of the case before agreeing. That evaluation is a normal part of the first meeting, and a decision not to take a case on contingency is not a verdict that you were wronged. You can read more about how claims are evaluated in our guide to how much a New Jersey employment case may be worth.
Fees Are Not the Same as Costs
This is the detail that surprises people most. “Fees” are what the lawyer earns for their work. “Costs” are out-of-pocket expenses the case itself generates, such as:
- Court filing fees
- Court reporters and deposition transcripts
- Expert witnesses (for example, a vocational or economic expert who calculates lost earnings)
- Medical or psychological records
- Process servers and copying charges
In a contingency case, the lawyer often advances these costs, and the agreement then says how they are handled when the case ends. The key question is whether costs are deducted from your recovery before or after the lawyer’s percentage is calculated, because the order changes your net amount. Ask for a clear answer, and ask whether you are responsible for costs if you recover nothing.
When the Employer Can Be Ordered to Pay Your Legal Fees
New Jersey’s major employee-protection statutes, including the Law Against Discrimination (LAD), the Conscientious Employee Protection Act (CEPA), and the Family Leave Act, allow a prevailing employee to recover reasonable attorney’s fees from the employer. The New Jersey Supreme Court has also upheld the principle that courts can enhance those awards in appropriate cases to account for the risk a lawyer takes in handling a case on contingency.
Fee-shifting does not mean your lawyer works for free or that you will never pay anything. It is one factor in how the fee is ultimately paid, and the details depend on the claim and the outcome. It is also a reason employers take these claims seriously: if they lose, their own exposure includes both sides’ legal bills.
What a Fee Agreement Should Say
Whatever structure you choose, insist on a written agreement, and read it before you sign. A good agreement answers these questions plainly:
- What exactly is the lawyer being hired to do? (Negotiate only? File a lawsuit? Handle an appeal?)
- How is the fee calculated, and does the percentage change if the case goes to trial?
- Are costs deducted before or after the fee percentage?
- Who pays costs if there is no recovery?
- What happens if you decide to end the relationship?
- Who decides whether to accept a settlement offer? (You do.)
Taxes and Your Net Recovery
A settlement is not the same as the amount that ends up in your bank account. Attorney’s fees, costs, and taxes all reduce it, and the tax treatment of employment settlements is more complicated than most people expect. We explain it in are employment settlements taxable in New Jersey?. It is worth asking any lawyer you meet how they help clients plan for it.
Questions to Ask at Your First Consultation
- Do you charge for the first meeting?
- What fee structure would apply to my situation, and why?
- What costs should I expect, and who advances them?
- What is a realistic timeline? (See how long an employment lawsuit takes in New Jersey.)
- Who will actually work on my case?
- What could make this case difficult?
Do Not Let Cost Make You Miss a Deadline
Of everything in this article, this matters most. Employment claims have short filing deadlines: as little as 180 days to file with the New Jersey Division on Civil Rights, one year for a CEPA whistleblower claim, and two years for most Law Against Discrimination lawsuits. A free consultation costs you nothing and can tell you whether the clock is already running. Waiting to “see if you can afford it” is the one choice that can cost you your claim.
Talk to a New Jersey Employment Lawyer
If you were fired, harassed, retaliated against, or pressured to sign something you do not understand, contact Charles Z. Schalk or call (908) 526-0707 for a free, confidential consultation. You will get a straight answer about your options and how fees would work before you decide anything. To see the kinds of matters we handle, visit our employment law practice area.
Frequently Asked Questions
Do I have to pay to meet with an employment lawyer in New Jersey?
Not at our firm. The initial consultation is free and confidential. Other firms set their own policies, so ask when you call. During the meeting, you should learn whether the lawyer can help and how fees would work if you hire them.
What does “contingency fee” mean in an employment case?
It means the lawyer is paid a percentage of what you recover through a settlement or judgment, instead of billing you by the hour. If there is no recovery, you generally owe no attorney’s fee. The percentage and the treatment of costs must be in a written agreement.
Can my employer be required to pay my attorney’s fees?
Sometimes. Under statutes such as the Law Against Discrimination and CEPA, a prevailing employee may recover reasonable attorney’s fees from the employer. Whether that happens depends on the claim and the outcome, so it should not be treated as a guarantee.
Is it cheaper to hire a lawyer just to review my severance agreement?
Often, yes. Reviewing and negotiating a severance agreement is a defined task that many lawyers handle for a flat or hourly fee. It can be a worthwhile investment because the agreement usually asks you to give up your right to sue. See how to negotiate a severance package in New Jersey.
What if I cannot afford a lawyer at all?
You can file a discrimination complaint with the New Jersey Division on Civil Rights or the EEOC without paying a filing fee, and you can file a wage complaint with the New Jersey Department of Labor and Workforce Development. A consultation is still worth having, because a lawyer can tell you which path protects your rights best.
Can I negotiate a lawyer’s fee?
You can ask questions and compare, and a good lawyer will explain the reasoning behind the structure they propose. Fees in contingency cases reflect the risk and work involved, so flexibility varies. What you should never accept is a vague agreement or a promise about the result.
This article is provided for general informational purposes and is not legal advice. Reading it does not create an attorney-client relationship. Fee arrangements vary by firm and by matter, and laws and deadlines change. Every case is different, and prior results do not guarantee a similar outcome.