How Legal Fees Work

Many injury clients pay no fee unless there is a recovery. New Jersey court rules cap what a lawyer can charge on a contingent fee in injury cases and require a written agreement. Employment cases work differently, because a court can order the employer to pay a winning employee's reasonable attorney's fees under the NJLAD and CEPA.

Injury cases

A contingent fee means the lawyer's fee is a percentage of what is recovered. New Jersey Court Rule 1:21-7 caps that percentage in tort cases:

  • 33⅓% on the first $750,000

  • 30% on the next $750,000

  • 25% on the next $750,000

  • 20% on the next $750,000

  • Above $3 million, by application to the court

The fee is figured on what remains after case expenses. When the client is a minor or mentally incapacitated, a settlement reached before trial is capped at 25%. The rule requires a written agreement signed by the attorney and the client.

Workers' compensation

New Jersey law limits fees in workers' compensation cases. N.J.S.A. 34:15-64 sets the limit at 25% of the judgment, and the judge of compensation must approve the fee before it is paid.

Employment cases

Both the Law Against Discrimination and CEPA allow a court to order the employer to pay a winning employee's reasonable attorney's fees. The court rule's percentage schedule does not apply to statutory discrimination and employment claims. Your agreement with the firm will explain how fees work in your case, and any fee must be reasonable.

Questions clients ask

Can I pay by the hour instead? In cases under the rule, a lawyer must first offer you an hourly option before a contingent fee.

Who pays case costs? Your written agreement will say. Costs are things like filing fees, records and expert witnesses, and they are separate from the fee.

Do I pay anything if we lose? That depends on your agreement. Ask before you sign, and read it.

Will I get the agreement in writing? Yes. New Jersey requires contingent fee agreements to be in writing.

Talk with the firm

Call (856) 507-1000 or use the contact form. The firm has offices at 1055 East Landis Avenue, Vineland, NJ 08360, and 2 North Maple Avenue, Marlton, NJ 08053.

This page is general information, not legal advice, and reading it does not create an attorney-client relationship. Deadlines and outcomes depend on the facts of each case.

Last updated November 4, 2026.