In the course of running a business, employers can be faced with all sorts of legal problems and challenges, from discrimination complaints to pay disputes to wrongful termination claims.
Because mistakes and confusion over legal rights and responsibilities can sap a company’s time and resources, it’s crucial to consult with an attorney early on.
When problems escalate to formal claims and lawsuits, the costs go up exponentially.
Finding the Right Employment Attorney
With the help of television commercials, billboards, newspaper ads, and Internet search engines, it's probably never been easier to find an attorney. But finding the right attorney for your employment law case can still be a challenge.
Employment lawyers usually represent either employers or workers—not both—so make sure you’re hiring an attorney who works on behalf of employers.
In addition, if you're dealing with legal issues involving a labor union or organized labor, be sure to look for a lawyer with expertise in labor law, as this area can be complicated.
Similarly, specialized tax lawyers and accountants should usually handle any of your business's tax-related issues.
Referrals
The best way to find a good lawyer is still through old-fashioned word-of-mouth. Talk to other business owners in your area and ask them for referrals.
Have they had a legal issue similar to yours? How did their attorneys help them resolve the issue? Ask whether the lawyer provided regular updates on the status of the case, and whether the lawyer and support staff were reasonably available to answer questions.
You might also ask for legal referrals from other professionals, such as your accountant, banker, insurance agent, or real estate broker.
Finally, if you have a relationship with an attorney whom you trust and who practices in another field (such as the estate planning lawyer who prepared your living trust), consider asking that person for a referral.
Good attorneys tend to recognize good lawyering when they see it, even when it's in another practice area.
Directory. Another good option for finding an attorney in your area is the Lawyers.com Find a Lawyer feature. You can search for attorneys by area of practice and location, and read reviews from clients and other lawyers. You'll also find links to law firms' websites, where you can get a feel for each firm and learn about their areas of expertise.
Bar associations. State bar associations can also provide referrals to employment lawyers, but their referrals don't include any information about the quality or experience of the attorneys. Use this option only as a last resort.
What Happens at the Initial Consultation With an Employment Lawyer?
Most lawyers will provide a free initial consultation, where you can explain your legal issues and evaluate whether the attorney is the right person for the job.
Treat the initial consultation with the lawyer as if it's a job interview—because it is. If the attorney tells you he specializes in employment law, ask him to talk about a few cases he’s handled. What were the problems that the clients faced, and how did the lawyer help resolve them?
Of course, attorneys often can’t reveal specifics about cases—for example, the names of clients, their exact legal issues, or settlement amounts—but you can expect lawyers to discuss the types of cases they typically handle and how they achieve positive outcomes for their clients.
During the initial consultation, describe the legal issue you’re facing. Lawyers usually must keep any information you reveal at this stage confidential, even if you don't end up hiring them, but you might want to confirm this point with your potential lawyer.
Ask the attorney to explain the applicable law and some potential options going forward. If your lawyer can’t discuss the legal issues surrounding your case in terms you can understand, find another lawyer who can.
How Much Does an Employment Lawyer Cost?
Your initial consultation should also include a discussion of how much your lawyer's services are likely to cost. Don’t avoid this subject—even if you find it awkward—and don’t simply assume your lawyer will charge you fairly. Discussing legal fees up-front will help you avoid unpleasant surprises down the road.
Keep in mind that price is only one consideration to consider when hiring an employment attorney. Experience, reputation, and even personality are just as important—probably more so. Hiring the cheapest lawyer solely to save money is a false economy.
And before you begin your search, check your insurance policies and consider speaking with your agent. Your commercial general liability policy or employment practices policy might cover the situation you're facing.
Attorneys generally charge in one of four ways: a flat fee, an hourly fee, a contingent fee, or a retainer fee.
Flat Fees
Lawyers often charge flat fees to handle legal issues that are likely to be straightforward and take a predictable and consistent amount of time. For example, an employment lawyer might charge a flat fee of $250 to help a client form an LLC or draft an independent contractor agreement. Both attorneys and clients like the simplicity of a flat fee, but flat fees are not appropriate in every case.
Hourly Fees
Most employment lawyers who represent employers charge hourly fees. Hourly rates for employment lawyers are usually between $150 and $350 an hour, depending on the lawyer's location, experience, and services provided. Before agreeing to an hourly fee, ask the attorney how many hours your legal issues is likely to require, but understand that this amount can’t be predicted with perfect accuracy.
Contingent Fees
Under a contingency fee arrangement, an attorney agrees to handle a case in exchange for a percentage of the proceeds of the negotiated settlement or judgment in court—usually between 25% and 40%. If you don’t recover any money, you don’t have to pay your attorney.
But a contingency fee usually isn't appropriate in cases where an employer is defending against a claim from an employee, such as wrongful termination, because there usually aren’t any proceeds from a settlement or judgment going to the employer.
Retaine
Employers sometimes have lawyers "on retainer" to handle any routine legal issues that arise. The client usually pays the retainer on a monthly basis, with surcharges for extraordinary services such as defending against an age discrimination lawsuit from an employee.
Before agreeing to pay a retainer, make sure that you and your lawyer are on the same page about which services are routine and which are extraordinary.
Additional Legal Costs
In addition to the fees described above, most lawyers will require you to reimburse at least some costs associated with your case. Costs might include filing fees, postage, photocopies, travel expenses, deposition expenses, expert witness fees, and more. Prior to signing a contract with your attorney, discuss the amount of costs you're comfortable with so that they don't spiral out of control.
When you've settled on the right attorney, be sure that the contract between you and your lawyer specifies the scope of representation. For example, a lawyer might agree to represent you in a particular discrimination lawsuit up to and including a trial, but any appeals would require a separate agreement and likely additional fees.
Contact an Employment Lawyer
If you're an employer facing a discrimination complaint, a wrongful termination lawsuit, or a wage and hour charge, contact an experienced employment law attorney to plan the best way forward.