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AFAs on the Rise: Employment & Labor Leads Growth

More legal departments are turning to Alternative Fee Arrangements (AFAs), especially in Employment & Labor, where nearly 29% of matters now use AFAs—up consistently over the past two years. Intellectual Property holds steady at the top.


Alternative Fee Arrangement Usage by Matter
Based on 12 months of data ending December 31, 2024


The 2025 LexisNexis CounselLink Trends Report report reveals increased adoption of Alternative Fee Arrangements (AFAs) across certain practice areas, notably Employment & Labor and Intellectual Property. Employment & Labor matters billed under AFAs grew to 28.5% in 2024, up from 26.9% in 2023 and 24.7% in 2022, signaling a sustained shift toward predictable, high-volume legal work. Intellectual Property remains the leader in AFA utilization at 29.2%, maintaining stability year-over-year.

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