You must consult counsel to know the tax implications of your particular situation. At the end of your negotiation with the employer, your lawyer ultimately shares in the outcome. If your case comes to closure before the beginning of final trial preparation, the attorney might receive 35 percent of your net recovery. If your claim is settled after the beginning of final trial preparation through the end of the trial, then the percentage to the attorney might be 40 percent. If your case actually goes to trial, you must also be prepared to pay for depositions and other court costs whether the relationship with your attorney is on a contingency or hourly basis.
Hourly relationships mean exactly that.
Again, there are extra costs for faxes, mailings, photocopying, word-processing, telephone and travel expenses, and so on. In the hourly option, you take more of the risk. If your case is successful, you usually keep more of the end result. Within the United States, each state has its own protected categories as defined by its Equal Employment Opportunity Commission. This agency may be able to assist you, but only if your complaint falls within quite stringent guidelines.