How Do Severance Agreement Lawyers Get Paid?
You just lost your paycheck. The last thing you want is another bill. That's understandable, and it's why most employment attorneys in Los Angeles who handle severance agreements have built their fee structures around the reality that their clients are between jobs. Here's how it actually works.
The Four Common Fee Models
1. Free Consultation
Many firms start with a free initial consultation. You sit down with an attorney, walk through your severance agreement, and get an honest assessment. No charge for this conversation. It's how the attorney evaluates whether they can help you and how you evaluate whether you want to work with them.
If the attorney's conclusion is "the offer is fair, sign it," you walk away having spent nothing but your time.
2. Contingency Fee
This is the model most people are familiar with from personal injury. The attorney only gets paid if they improve your outcome. Their fee is a percentage of the additional money they negotiate for you.
Example: Your employer offers $10,000 in severance. The attorney negotiates it to $30,000. Their contingency fee (typically 25-40% of the increase) comes out of the $20,000 they recovered. You still walk away with significantly more than the original offer.
The key benefit: zero out-of-pocket cost. If the attorney doesn't improve your deal, you don't pay. This model works best when you have strong legal claims that give the attorney leverage to negotiate a substantially better outcome.
3. Flat Fee
Some attorneys charge a fixed amount for defined services. Common flat fee arrangements include:
Agreement review only: $500 to $1,500. The attorney reads the agreement, identifies issues, and gives you written recommendations. You handle any negotiation yourself.
Review plus negotiation: $1,500 to $5,000. The attorney reviews the agreement, drafts a counter-proposal, and handles one or two rounds of negotiation with your employer's legal team.
The flat fee model gives you cost certainty. You know exactly what you'll pay before you commit.
4. Hourly Rate
Employment attorneys in Los Angeles typically charge $300 to $600 per hour. An agreement review might take two to four hours. Full negotiation might involve 10 to 20 hours total. This model is most common for complex executive packages where the work required is harder to predict upfront.
Good attorneys using hourly billing will give you an estimate upfront and check in before exceeding it.
Which Model Is Right for You?
It depends on your situation:
You have strong legal claims and your employer is offering low. Contingency makes the most sense. The attorney has an incentive to maximize your outcome, and you pay nothing if they can't improve the deal.
You just want a professional review before signing. A flat fee review is efficient and affordable. You get expert analysis without open-ended costs.
You're an executive with a complex package. Hourly might make more sense because the work is nuanced and the potential recovery justifies the investment.
You're not sure what you need yet. Start with a free consultation. The attorney will recommend the right approach based on your specific situation.
Questions to Ask About Fees
Before hiring any attorney, ask these questions:
Is the initial consultation free? What's the fee structure if I want you to negotiate? If it's contingency, what percentage? Is there a minimum fee? If it's hourly, what's your estimate for the total time? Are there any costs beyond the attorney fee (filing fees, administrative costs)? What happens if you can't improve my severance?
A good attorney will answer all of these transparently. If they're evasive about fees, that's a red flag.
The Bottom Line on Cost
The fear of legal fees keeps many people from even calling. But between free consultations and contingency arrangements, it's possible to get professional help with zero out-of-pocket cost. And even when there are fees, the return on investment is often substantial. Paying $1,500 for an attorney who negotiates an additional $10,000 in severance is a very good deal.
Contact our employment team for a free consultation. We work with employees throughout Los Angeles and Southern California. We'll review your agreement, evaluate your claims, and explain exactly what working with us would cost. No surprises.


