Your lawyer shouldn’t ask for money out of pocket from you in a workers’ comp case; fees are tightly regulated and directly deducted from any settlement awarded to you.
Read on to understand more about how attorneys get compensated in a workers’ comp case.
Statutory Fees
Workers’ compensation insurance companies pay not only medical and funeral bills but also substantial sums in case management fees, independent medical exam (IME) fees, expert witness fees and third-party vendor costs. Furthermore, they often award attorneys significant permanency awards.
Workers’ compensation cases must always be litigated, which may incur numerous expenses for both sides. When injured employees seek treatment, their focus should remain on recovery rather than incurring extra costs related to attorney representation.
In most states, attorneys work on a contingent fee basis, meaning they won’t get paid until they secure compensation for their clients. Fees are set by state law and taken out of any settlement or benefits awarded – making legal representation accessible and affordable while keeping everyone’s best interests aligned with achieving an ideal settlement or award of benefits for you.
Contingency Fees
As opposed to traditional legal representation, workers’ compensation attorneys usually work on a contingency basis – this means you only pay them when your case is successful and their fee will come as a percentage of any settlement or award made in your favor.
This arrangement provides injured workers with quality legal representation without incurring upfront costs, while also protecting them from insurers overcharging for services. Some states also set maximum attorney fees to ensure attorneys don’t overcharge.
In New York, attorney fees represent 15% of any increase in schedule loss of use, permanent partial disability or permanent total disability awards that is greater than previous payments. It does not include amounts set aside as Medicare Set-Aside; therefore it must be approved by a workers’ comp judge or appeals board before being assessed as fees by your lawyer. In certain instances, extra fees may also be awarded in cases of insurance company misconduct or unreasonable delays.
Fees for Appealing a Decision
If your workers’ compensation case goes to hearing and the insurance company loses, the judge may award an attorney fee to you. This amount varies by state but generally reflects how complicated and time-consuming litigating your case was for both lawyer and client.
At a hearing, both you and your attorney will present evidence as to why a workers’ compensation award should be granted, while representatives from the insurance company and its lawyer will argue against. Most hearings take place electronically so you can attend from home or other locations via electronic means.
If you need to present new evidence during an appeal hearing, make sure your lawyers have an affidavit from you explaining why this information wasn’t available during your first hearing. Failing to file this document could result in your appeal being dismissed; any lawyer handling your case should provide details on their fees; these may even be included as part of a representation and fee agreement.
Fees for Litigation
As soon as a workers’ compensation case in New York has been settled, its attorney files a fee request with the state and then waits for its resolution from New York State Workers’ Compensation Law Judge who sets its amount – which doesn’t depend on money received voluntarily or through other channels.
Your lawyer will only receive payment if there is a significant award and the judge approves their fees, in order to encourage them to fight hard for maximum benefits available to them.
Minnesota law prevents insurance companies from using cost-cutting methods to deny or reduce your award of benefits, and limits fees at 20% of any award; judges must approve them to prevent “sticker shock”. Depending on how complex the case is and what kind of settlement or award you receive, your attorney’s fee amount could differ considerably.
