This study explores student perceptions of, and experiences with, labor-based contracting grading--an approach to student assessment that values labor rather than quality. In theory, labor-based contract grading reduces teacher bias and challenges inequities maintained by traditional grading. A qualitative content analysis of anonymous online surveys was conducted to gain insights from students on its effectiveness. These surveys revealed the following themes: decrease in stress, promotion of risk taking, pursuit of own passions, course clarity, fairer system, and decrease in effort. Understanding how students perceive labor-based contract grading, including its possibilities and limitations, can better inform instructors on best practices if considering adopting such an assessment approach.