Service award (incentive award)
A service award is a court-approved payment to the named plaintiff in a class action for their time and effort, on top of what other class members get.
Also called: incentive award, incentive payment, class representative award
A service award is a court-approved payment to the named plaintiff in a class action for their time and effort, on top of what other class members get.
What it means
A service award is an extra payment, approved by the judge, that goes to a named plaintiff who represented the class. It is also called an incentive award. It is meant to recognize the time and effort of someone who agreed to put their name on a lawsuit for everyone else.
Named plaintiffs often hand over documents, answer written questions, sit for a deposition, stay in touch with the lawyers and review the settlement. The award is usually paid from the settlement fund, in addition to the plaintiff's own payment as a class member. The notice should disclose any special benefit for the class representatives.
Not every court allows these awards. In 2020, the 11th Circuit, whose courts sit in Alabama, Florida and Georgia, ruled that they are not allowed in class actions there. Courts elsewhere have generally kept approving them after checking that the amount is reasonable.
What it means for you
A service award comes out of the same pot that pays everyone else, so it slightly reduces what is left for the class. In most settlements it is a small slice of the total. Look for it in the notice's list of deductions, along with the lawyers' fees and administration costs.
Only named plaintiffs can receive one, and only if the judge approves it. Filing a claim does not qualify you for one. If the amount looks out of line, you can say so in an objection before the deadline.
Example
Say a customer agrees to be the named plaintiff in a class action over a hidden fee. Over two years, she gathers her account records, answers the company's written questions and sits for a half-day deposition. When the case settles, class counsel asks the judge to approve a modest service award for her, listed in the notice. The judge reviews her work and approves an amount, which is paid from the settlement fund along with her regular class member payment.
FAQ
No. The 11th Circuit, which covers Alabama, Florida and Georgia, ruled in 2020 that they are not allowed in class actions there. Courts elsewhere have generally kept approving them, so it depends on where the case is filed.
No. Service awards go only to named plaintiffs who represented the class, and the judge must approve them. Filing a claim as a class member entitles you only to the regular settlement payment.
Related terms
- Johnson v. NPAS Solutions, LLC, No. 18-12344 (11th Cir. Sept. 17, 2020)
- Manual for Complex Litigation, Fourth, sections 21.312 and 21.641 (Federal Judicial Center)
Updated Oct 18, 2026. Plain-English definitions for general information — not legal or tax advice.