How much does a mediator cost in California? Mediation has become an increasingly popular alternative to litigation for resolving disputes in California, especially employment disputes. One of the main reasons for this is the potential for significant cost savings compared to going to court. However, like anything, mediator fees can vary widely. Sometimes, you also have to be careful of those providers who charge administrative fees, since they can sometimes add an additional cost of more than 10% of the mediator’s fee.
Hourly Rates
Most mediators in California have an hourly rate for their mediations but charge in blocks of either a half day or a full day. This is because it’s difficult to charge hourly, because a mediation requires the mediator to set aside at least half of a day, or even a full day.
The exact rate usually depends on the mediator’s experience and possibly the complexity of the case. You can expect an employment law mediator’s hourly rate to be anywhere from $300 per hour to $1,000+ per hour. Some mediators also offer different rates depending on how many parties are participating.
Half-Day and Full-Day Rates
Like I said above, despite advertising their hourly rates, most mediators will offer two package options, either half-day mediation or a full day mediation. A half day mediation will usually reserve you four hours of actual hearing time with the mediator, while a full day will generally get you eight hours. And obviously the mediator will likely need mediation briefs to learn what the case is about, so built into these packages is generally some additional time for preparation as well.
That being said, as a lawyer, I have always tried to balance brevity with being informative when it comes to my mediation briefs. So, while I never wanted to be too longwinded with my briefs, I also made sure that I armed the mediator with everything he or she needed to advocate my side and get the case resolved.
Cost Comparison to Litigation
The cost comparison is important for both defendants and plaintiffs.
Defendants usually have an hourly pay arrangement with their lawyers. This means that cases can be extremely expensive to defend, whether the defendant wins the lawsuit or not. It is not unusual for an employer defendant to pay upwards of $500,000 through trial, possibly more.
Plaintiffs, on the other hand, generally hire lawyers on a contingency basis. This means that whether the case resolves through trial or early resolution with a mediation, the fee is normally the same. However, litigation costs (which are separate from attorney’s fees) can be significant through trial. So, an early mediation could result in tens of thousands or more dollars in a plaintiff’s pocket.
But in addition to financial costs, lawsuits always have an emotional cost. Being involved in drawn out litigation where every bad thing you could imagine said about you is emotionally taxing. Mediation allows you to resolve your case in the course of a day (or less), instead of the usual 18 to 24 months that a lawsuit can take to resolve.
Those Darn Hidden Costs
Like I mentioned before, some mediators charge an administrative fee, which I’ve seen be as high as $500. That fee is separate from the mediator’s fee and is generally just a per-party, non-negotiable fee. So instead of maybe paying only $3,000 for your share of a full day mediation, you might be paying $3,500 after the administrative fee. I’ve asked about those fees before, and time and time again the mediation companies say that they are for overhead cost. I understand that used to make sense, but with the majority of mediations taking place remotely now, there is no reason for a party to pay for the upkeep and snacks at the mediation company’s brick and mortar location.
So, Why Choose Hanrahan Mediation?
Other than choosing Hanrahan Mediation due to Corey Hanrahan’s experience in handling only employment law matters for the past 17+ years, which I’ll get into more shortly, we never charge administrative fees. Hanrahan Mediation’s fee structure is straightforward and honest. In fact, I even offer a discounted rate for virtual mediations conducted via Zoom. The way I see it is, if you’re not using the physical space, why should you have to pay for it? Additionally, we’re happy to hold an in-person mediation at one of the parties’ offices (so long as it can accommodate all the parties in individual rooms) without increasing the fee to the in-person price. I’m not here to nickel and dime the parties, I’m here to help them get their differences resolved as affordably as possible.
So now let’s talk about my experience. My reputation is as a plaintiff’s side employment attorney, since I’ve spent my career representing employees against unlawful employment practices. However, in doing that, I have become keen on spotting weak claims. I believe I do more defense work than the defense lawyers in town since as a lawyer I have had to be able to analyze a case and determine if there was merit, generally during a single intake phone call. So, to the defense lawyers out there questioning why they should hire me to mediate a case they are defending, my answer is simple: I have spent my entire career looking for the reasons not to take on a case, so there is nobody better at spotting defense-friendly facts in a case than me.
If you’re still not convinced, feel free to give me a call at (619) 910-1200, and I’d be more than happy to explain why I’m one of the best equipped mediators to help resolve your employment case.
Why Mediation?
Mediations can be intimidating, especially if you have never participated in one before. They can also be anxiety invoking and scary to someone who has never participated in one before. This guide will help you understand how mediation works, to set you up for success. By being prepared, we can even the power dynamic so that all parties start on the same footing.
Contact us today for our availability to schedule your mediation.
Hanrahan Mediation
2305 Historic Decatur Rd, Suite 100
San Diego, California 92106
(619) 910-1200