Contingency Fee vs. Hourly Attorney, Explained
How your attorney gets paid can shape the whole experience of pursuing a case — here's a plain-English comparison of the two most common arrangements.
Contingency fee, in plain English
Your attorney is paid only if you win or settle, taking an agreed percentage of the recovery. This lowers your financial risk significantly and is common for personal injury, employment, and many class action cases, where the goal is a monetary recovery.
Hourly fee, in plain English
You pay your attorney for time spent on your case, typically requiring an upfront retainer, regardless of outcome. This is more common for business disputes, contract matters, or cases without a clear monetary target.
How to decide which fits your situation
If your case involves a likely monetary recovery and you want to limit upfront risk, ask attorneys whether they work on contingency. If your matter is more complex or advisory in nature, expect hourly or flat-fee billing to be more typical — and ask for a clear written fee agreement either way.
Key takeaway
Contingency fees shift risk to the attorney and are common for injury, employment, and class action cases. Hourly fees are more typical for complex civil matters. Either way, get the fee structure in writing before you start.