Lawyer Fees in Illinois Overtime and Unpaid Wage Lawsuits

Overtime hours refer to the time an employee works over 40 hours per work week. Overtime pay is the special premium rate of compensation that employers must pay their employees for working overtime hours. Under federal law, overtime pay must equal at least one and one half times an employee’s regular rate of pay.

Unpaid wages can mean (1) a portion of your pay that has been wrongly withheld, (2) pay or wages (including commissions, bonus and vacation pay) that are owed to you, or (2) a paycheck that your employer never paid you.

Lawyers in overtime and unpaid wage cases can be paid a couple of different ways. Some lawyers work on a "contingency fee" basis where they collect payment after judgment in the case. If the amount of unpaid wages or overtime is relatively small, the lawyer will likely charge on an hourly basis, typically $200 - $300 per hour. However, under Illinois law, usually when you win one of these claims your employer has to pay your lawyer fees.

A contingency fee means that the lawyer’s fee is contingent on the recovery from your employer. If your case wins, your lawyer’s fee is a percentage of the awarded judgment – usually 1/3. If your case loses, your attorney isn’t paid. Because of the possibility of the lawyer getting nothing if your case loses, contingency fees are typically used for larger cases where the amount of money involved is high.

For example, a lawyer will likely take a case where the amount of unpaid wages is $90,000 on a contingency basis because the lawyer will get $30,000 if the case wins and they are handling it on a paid if you win basis. It’s risk-reward for them. On the other hand, if the amount of unpaid wages is $3,000, the lawyer will probably charge hourly because they will collect more this way than by charging a contingency fee. If the lawyer puts in 10 hours of work at $200 per hour, that is a guaranteed $2,000 which is more appealing than an uncertain $1,000 contingency fee.

Before hiring an overtime/unpaid wages attorney to represent you on a contingency fee or hourly basis, make sure you understand the financial arrangement completely, and ask whether the attorney covers other costs associated with your case, such as the filing fee, or if you are required to pay those up front.

If the lawyer doesn't take your case on contingency, you'll probably have to shop around because legal fees generally far exceed any possibility of recovery beyond the lawyer's fees. If the amount of money you are owed is small – too small to make a lawsuit worth your while – you may want to consider a class action lawsuit if that is a possibility.

A class action is a form of lawsuit in which a large group of people collectively brings a claim to court to be decided in a single case. If the class wins, the amount recovered is divided among the class members according to the amount each person lost.

For example, it wouldn’t make sense to hire an attorney to sue your employer if you are owed $300 in overtime because the amount you would end up paying the attorney would exceed the amount you are owed. However, if there are 50 other employees who are each owed $300, you could join together and sue your employer for $15,000.

In a class action, the attorney is paid on a contingency basis. Rather than the typical 1/3 of the recovery attorney’s fee, the judge, on a case-to-case basis, determines the attorney’s fee in class action suits, based on a number of factors.

Additionally, keep in mind that if you sue your employer (individually or via a class action) and win, your lawyer can ask the judge to order your employer to pay for your attorney’s fees and costs. This way you can keep all the money you were owed.

If you have any questions about your unique situation or would like a referral to an experienced Illinois unpaid wage and overtime attorney, please contact us. Our lawyers would be happy to speak with you and all calls/e-mails are free and confidential.