Pre-Settlement Funding for Employment-Related Claims

Employment-related legal disputes can create financial strain at the same time a person is dealing with job loss, reduced income, or workplace stress. Claims involving wages, termination, discrimination, or other employment issues often take time to resolve, especially when negotiations, investigations, or court proceedings are involved.

Legal funding—sometimes called pre-settlement funding or lawsuit funding—is one option some individuals explore to help manage expenses while an employment-related claim is pending. This information is general in nature, is not legal advice, and does not guarantee any outcome.

Why employment claims can take time

Employment cases often require detailed documentation and careful review. Employers and insurers may contest liability, damages, or legal interpretations, which can slow the process. Delays commonly result from:

• Internal investigations or administrative proceedings
• Review of employment records, contracts, and policies
• Witness statements and evidence collection
• Negotiations between legal counsel
• Court or agency scheduling, if litigation is filed

While a claim progresses, individuals may face immediate challenges, particularly if income has been interrupted or employment has ended.

What legal funding is (and isn’t)

Legal funding is typically structured as a non-recourse advance tied to a pending legal claim. In many arrangements, repayment is intended to come only from the proceeds of a settlement or judgment, if there is one. Terms vary by provider and by state, and the agreement itself controls.

A legal funding company does not provide legal advice, does not represent you, and does not influence how your attorney handles your employment case. Your attorney remains responsible for advising you on legal strategy, rights, and deadlines.

Types of employment claims we may consider funding

Every employment matter is fact-specific. Funding review focuses on whether there is an active claim with legal representation and whether available information supports responsible funding—not on predicting outcomes.

Employment-related claims commonly reviewed include:

• Wrongful termination or retaliation claims
• Wage and hour disputes, including unpaid overtime
• Discrimination or harassment claims
• Whistleblower or workplace retaliation matters
• Contract or severance-related disputes

Common ways plaintiffs use employment legal funding

Legal funding is often used to help cover short-term, essential expenses while an employment claim is unresolved. Examples include:

• Rent or mortgage payments and utilities
• Groceries and basic household expenses
• Health insurance premiums or medical costs
• Transportation and job-search-related expenses
• Childcare and family necessities

Legal funding is not intended to replace income, unemployment benefits, or long-term financial planning. It is typically a temporary bridge, and the amount requested should be carefully weighed against potential repayment if there is a recovery.

How employment legal funding generally works

While details vary by case, the process typically includes:

• Application: You provide basic information about your employment claim and your attorney’s contact details.
• Case review: With your permission, we coordinate with your attorney to confirm claim status and review relevant documentation.
• Offer and decision: If approved, you receive a written offer outlining the advance amount, fees or charges, and repayment terms.
• Funding and repayment: If accepted, funds are issued according to the agreement. If there is a recovery, repayment typically comes from case proceeds. If there is no recovery, many non-recourse arrangements generally do not require repayment, subject to contract terms.

Questions to consider before accepting funding

Because lawsuit funding can be costly, it’s important to understand the terms before moving forward. Questions to review with your attorney may include:

• How are fees or charges calculated?
• Do costs increase over time?
• Are there administrative or processing fees?
• Can additional advances be requested later?
• What happens if the claim takes longer than expected?

Talk to us about legal funding for employment-related claims

If you are pursuing an employment-related claim and need help managing expenses while the matter moves forward, we can explain how pre-settlement funding works and whether your situation may qualify.