US Employment Law — Contingency Fee Guide

What Employment Cases Use Contingency Fees?

Direct Answer: Employment cases involving monetary damages — wrongful termination, workplace discrimination, sexual harassment, wage theft, and retaliation — are commonly handled on contingency. Fee-shifting statutes under Title VII, ADA, and FLSA often allow attorney fees on top of the contingency arrangement.

Not all employment disputes are handled on contingency. The arrangement is most common in cases involving monetary damages, particularly those covered by fee-shifting statutes. Common contingency-fee employment cases include:

• Wrongful termination — firing that violates federal or state law, public policy, or an employment contract
• Workplace discrimination — adverse actions based on race, sex, age, disability, religion, or national origin
• Sexual harassment — hostile work environment or quid pro quo harassment under Title VII
• Retaliation — adverse action against employees who report illegal conduct or file complaints
• Wage and hour violations — unpaid overtime, minimum wage violations under the FLSA
• Whistleblower claims — protection under Sarbanes-Oxley, Dodd-Frank, and state whistleblower statutes

Fee-Shifting Statutes Explained

Many federal employment laws include "fee-shifting" provisions that allow a prevailing plaintiff to recover reasonable attorney fees from the losing defendant. This is distinct from the contingency fee arrangement itself — fee-shifting is a court-ordered payment by the defendant, whereas the contingency fee is a contractual arrangement between attorney and client.

Key fee-shifting statutes include Title VII of the Civil Rights Act of 1964 (42 U.S.C. § 2000e-5(k)), the Americans with Disabilities Act (42 U.S.C. § 12205), the Age Discrimination in Employment Act (29 U.S.C. § 626(b)), and the Fair Labor Standards Act (29 U.S.C. § 216(b)).

The EEOC Process

Before filing a federal employment discrimination lawsuit, you must first file a charge of discrimination with the Equal Employment Opportunity Commission (EEOC). The EEOC investigates the charge and may attempt conciliation. If the EEOC does not resolve the matter, it issues a Right to Sue letter, giving you 90 days to file suit in federal court.

Damages in Employment Cases

Damages available in employment cases vary by statute and may include back pay, front pay, compensatory damages for emotional distress, punitive damages (capped under Title VII at $50,000 to $300,000 depending on employer size), and attorney fees. The ADEA does not allow compensatory or punitive damages but does permit liquidated damages for willful violations.