Attorneys' Fees: The "Hidden Costs" of Discrimination and Wage and Hour Litigation

Almost 20 years ago I published an article in the Nassau Lawyer regarding the often overlooked additional costs of defending litigation where, by statute, the prevailing party is entitled to attorneys’ fees and costs. I called them “hidden” because many clients do not appreciate the fact that, even the most marginal claims where damages may be very minimal, they come with a cost if the plaintiff is successful that seem astounding when they accompany an award of attorneys’ fees.

A reminder of this comes from the recent case of Caltenco v. G.H. Food, Inc., 224 WL 1338784 (2d Cir. March 29, 2024). In this case, the Second Circuit sustained the District court’s award of $113,225.88 in attorneys’ fees and $10,869.34 in costs in an FLSA overtime action where the plaintiff was only awarded $7,682.20. While this writing will explain the “Lodestar” calculation used by courts to determine the appropriate amount of fees to award where a fee-shifting statute exists, it is important to note the words of the Second Circuit that explain, succinctly, how courts will proceed when awarding fees...

Read the full blog post here.