Are demand letters effective?

(1) No, you can make a demand now. Don't let limitations periods expire as typically state and federal time periods to take matters to EEOC and state agency equivalent are relatively quick. (2) It depends. If you have a good case with good damages, $1,500 can be reasonable as the Employer may wish to deal early. Lawyer could try to negotiate for a 1/3 or 40% contingency fee and that seems alot of $$$ for writing a letter if it is successful (e.g., 1/3 of $30,000 is $10,000) but nothing if unsuccessful. Lawyer has to get paid somehow. In my view, it is difficult to get an employer interested in paying a good settlement if you have a defensable case or one with limited damages until you bring a federal or state lawsuit. Be careful this is not a one and done. Otherwise, you have paid him $1,500 and have no assurance that the more time consuming steps won't be charged at with higher fees. Next step is to file an EEOC/state agency claim and step after that is a lawsuit. Make sure you know if lawyer is willing to go the next steps and will lock himself in to terms of representation.

A demand letter can be an effective tool for early resolution. However, before a lawsuit can be filed, you will need to exhaust your administrative remedies. I personally would not charge $1,500.00 to do a demand letter, especially since in my experience they are generally not beneficial until after the administrative charges are filed. Please contact me if you would like a second opinion.