A workers’ compensation attorney is usually paid a contingency fee. Also, their initial consultation is typically free of charge; therefore, as an injured employee, you don’t pay any upfront costs. Your workers’ comp lawyer receives a percentage of a settlement. The remainder goes towards your workers’ compensation payments.
Clients are often unfamiliar with this process. A seasoned attorney knows how to win a case. However, they may charge higher fees than a less experienced and less reputable lawyer. Nonetheless, some rules limit how much they can charge. Continue reading to learn about how contingency fees are set and California’s laws on workers’ comp benefits.
How Does a Contingency Fee Work?
A contingency fee is paid only if your case wins. You won’t owe any legal fees if your case is lost, although you may be required to pay court costs and other expenses. But assuming your case wins, the percentage taken out of your settlement award is determined by a contract you sign early in the process. The fee set in the agreement won’t change. However, your agreement will indicate whether it’s determined before or after the case concludes.
The components of a workers’ compensation attorney’s contingency fee contract are as follows:
- Fee Disclosure Statement: The fee disclosure statement is a form that identifies what percentage of your settlement your attorney will charge. It may also include prorated services. Each case is different so the amount of time your lawyer spends on your claim may vary.
The disclosure statement must be approved by the Workers’ Compensation Appeals Board (WCAB) based on:
- The time spent on the case
- The responsibility your attorney assumes
- The attorney’s quality of representation
- The results of the case
The WCAB has 10 days to approve the agreement once it’s made. A workers’ compensation judge (WCJ) must also approve the attorneys’ fee at the end of the case.
- 5710 Fees: If the insurance company pays attorney’s fees, your settlement amount won’t be reduced to compensate your lawyer. These 5710 fees can cover case prep and deposition expenses, up to $500 per hour. The insurance company may also pay fees for medical record subpoenas, deposition transcripts, and a qualified medical examination. The applicant’s transportation costs to and from legal and medical appointments may also be covered.
Factors That Determine How a Contingency Fee Is Set
In a personal injury case, an attorney may charge a fee of 30% to 40% of a client’s settlement amount. but a lawyer can charge more depending on the following factors:
- Case Complexity: An attorney may charge a higher fee if they have more work to do and spend more time on the case. Hiring a lawyer may be more expensive if disputes over the cause of your injury/illness or multiple witnesses are involved. Legal costs may be lower if the evidence is compelling and the case is straightforward.
- Stage of the Claim: Hiring a workers’ compensation attorney costs more if you’re first starting your claim than if you’ve already filed it. Fees to handle only the appeal or denial of a claim may be less. The more time and effort the lawyer requires, the more they charge.
- The Lawyer’s Experience: The fees charged by a more seasoned and reputable lawyer are higher than those charged by a less experienced, less established attorney. Fees also vary depending on the area of law they practice. Lawyers specializing in workers’ compensation law often charge a higher fee than other attorneys.
Attorneys’ Fees vs. California Law
Attorneys’ fees aren’t governed by laws or legal statutes. However, the California Code of Regulations permits the WCJ or an arbitrator to establish a reasonable fee based on the factors listed earlier. The fee is usually based on the total amount recovered at the end of the case. It can also be determined based on the amount of permanent disability received. In higher-value disability cases, the attorney may receive a percentage of the applicant’s pension.
The WCAB can determine if a client is being asked to pay exorbitant fees. An attorney cannot demand or accept any fee until the appeals board approves or sets the amount.
Minimum Workers’ Comp Benefits in California
Aside from how your workers’ compensation attorney gets paid, you may wonder about the benefits you’re entitled to. Temporary total disability (TTD) rates change from year to year. For 2024, the Division of Workers’ Compensation set the maximum TTD rate at $1,619.15 per week. The minimum TTD rate is $242.86. The rate paid depends on the date of injury and an employee’s average weekly earnings before their injury.
An individual who is 100% permanently disabled can usually receive ⅔ of their average weekly wage before their injury on an ongoing basis. Otherwise, if a disability is only partial, rates are determined by a disability rating scale. The number assigned determines how much you receive and for how long.
Can My Attorney Increase Their Fee for Appealing a Denied Claim?
Your workers’ compensation lawyer can help with the appeals process which can be complex and time-consuming. A Notice of Appeal must be filed within 30 days of a denied decision. Once it’s sent to the WCAB, you must attend a hearing before a judge to present evidence and arguments. If your claim is still denied, the decision can be further appealed to the WCAB and the California Court of Appeal, further adding time and effort to your case.
Your attorney may require additional time to appeal a denied claim in the following situations:
- An employer disputes that your injury or illness is job-related.
- You did not report the injury in the required timeframe.
- The claimant was injured while under the influence of drugs or alcohol.
How Long Does the Claims Process Take?
An experienced workers’ compensation attorney knows strategies that can help expedite claims. For example, filing the claim soon after your injury and gathering as much evidence as possible help speed up the process. However, the complexity of the case, availability of evidence, and stage of the claim can impact how long the process takes.
Call Jacob for Help with Your Workers’ Compensation Claim
At The Law Offices of Jacob Emrani, we can help whenever you need a workers’ compensation attorney. Our team is familiar with California’s rules and procedures for filing workers’ comp claims. As an experienced litigator, our Los Angeles personal injury attorney complies with all state and federal regulations. They also ensure you’re treated fairly and your financial needs are met. Schedule your free consultation by calling (888) 952-2952 today.