If you've suffered a work-related injury or illness, and you’re considering hiring an attorney to do a worker compensation audit, it is vital for you to know the prices involved. Lawyers generally handle workers' comp cases, like most personal injury cases, on what’s called a “contingency fee” basis. That means if you win your case, your attorney receives a percentage of your workers' comp benefits or settlement. If you lose, there's no fee.
By eliminating the necessity for substantial up-front payments, fee arrangements allow all injured workers, even those with limited financial resources, the prospect to receive quality representation. They also provide a strong incentive for attorneys to obtain maximum benefits for their clients.
State laws or regulations tightly control attorneys' fees in workers' comp cases. Many states place some sort of cap on the amount an attorney can charge and require the approval of the fees by the workers' comp judge or appeals board.
State Rules on Workers' Comp Attorneys’ Fees
The laws and regulations handling attorneys’ fees vary from state to state. Generally, the judge must approve the fee before the lawyer gets paid, taking into consideration how complicated the case was, the time and work involved, the number of advantages awarded, and the final result. Many states set a cap on the share and/or total amounts that attorneys can charge. Typically, the maximum percentages range from about 10 to 20%, depending on the complexity of the case. But some states have higher limits or none at all. In general, a case that's settled before a hearing will warrant a lower percentage fee than one that needs a hearing or maybe an attempt in circuit court.
In a national survey, injured employees reported that their lawyers received a mean of 15% out of their workers' comp settlements or awards. The same survey showed that injured workers who had hired attorneys received 30% more in compensation than those that had pursued their claims without legal help.
Many states prohibit lawyers from charging fees for obtaining routine benefits, like medical bills or lost wages that the employer or insurer hasn’t disputed. Also, states may allow attorneys to ask the judge to order the other side to pay additional fees in certain situations, such as when the employer or insurer has engaged in egregious misconduct, caused unnecessary delays, or refused to pay benefits that have already been awarded. The percentage caps in state laws don’t apply to those fees (often called sanctions or penalties), because they don’t begin of your compensation.
Can You Negotiate Workers’ Comp Attorneys’ Fees?
At your initial consultation, your attorney should provide you with a transparent explanation of the fees you’ll be charged. In states that set a cap on attorneys’ fees in workers’ comp cases, lawyers generally charge that quantity. Still, you’re free to ask an attorney to handle your case for less than the maximum allowable amount; it never hurts to try. But be sure to negotiate the fees before you sign the representation and fee agreements.
Charges for Expenses Related to Your Case
In addition to attorneys’ fees, workers’ comp cases involve other out-of-pocket costs. Some of these common expenses include:
- filing fees
- fees for copies of medical records
- paying physicians who conduct independent medical examinations
- costs of depositions
- the attorney’s travel expenses, and
- copying and postage costs.
These costs aren't covered by the quality fee agreement. Most law firms will pay these expenses as they come up, but you'll probably have to reimburse the firm for the costs if you win your case. Some lawyers charge for expenses albeit you lose your case.
Before you sign an agreement together with your lawyer about expenses, confirm you understand what the agreement covers, whether the attorney will front the prices and once you need to pay them back. You should also attempt to get an estimate of the standard bill for expenses during a case like yours.
Contact an Attorney for a Free Initial Consultation
The workers’ comp system is extremely complicated, and insurance companies do everything they will lower their costs by denying or reducing benefits. They love it when injured employees try to represent themselves. If you're brooding about filing a workers' comp claim or you've had a claim denied, contact an experienced attorney for a free consultation. Having an attorney on your side will make it much more likely that you’ll get the benefits you deserve. And even after attorneys’ fees are deducted from your award or settlement, you’ll probably find yourself with more compensation than if you tried to navigate the system on your own.
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