How Much Does A Workers’ Comp Lawyer Cost, And Who Pays?

Hiring a Workers’ Compensation Lawyer

The workers’ compensation system was created as a safety net for workers. When you suffer an on-the-job injury, your employer’s insurer should approve all necessary medical treatment until you can return to work. It should also pay part of your wages if your injury causes you to miss a threshold number of work days.

You do not need a workers’ compensation lawyer if the claim gets approved and paid. However, claims do not always proceed smoothly. Insurers can deny claims within 90 days for many reasons, including the following:

• You missed a deadline in your case.

• You were not working when you were injured.

• Your employment did not cause your injury.

• You fall within a workers’ comp exemption.

• Your injury is a pre-existing condition.

If you disagree with the grounds given by the insurer, you have the right to hire a workers’ compensation attorney to challenge the claim denial. The lawyer may respond to the claim denial with additional evidence, such as medical records showing how and when your injury happened. Understanding when a workers' comp settlement offer might occur is also crucial, especially in complex cases where a settlement might be preferable to ongoing disputes with the insurer.

They might also make legal arguments to the insurer. These arguments might explain that the insurer misinterpreted or misapplied the workers’ compensation requirements in your state.

Workers’ compensation lawyers charge for their services. But how much do workers' comp lawyers charge, exactly?

States usually have several protections in place for employees who must hire an attorney for their cases to ensure lawyers do not overcharge for the work they perform. They also have rules that allow workers’ comp officials to order insurers or employers to pay the worker’s attorney fees.

How Much Does a Workers’ Comp Lawyer Cost?

Your state’s laws may permit workers’ comp lawyers to charge two types of fees. Hourly fees are quoted in dollars per hour. Wyoming, for example, allows lawyers to charge up to $180 per hour in workers’ comp cases.

The total fee charged by a lawyer billing an hourly fee will depend on the amount of time spent on your case. For example, suppose that a lawyer charges $200 per hour. If they spend 20 hours on the case, the final bill will be $4,000.

While insurers and employers might be able to afford hourly fees, injured workers often cannot. Instead, many states allow workers’ compensation lawyers to charge a contingency fee.

Contingency fees are quoted as a percentage of the final award. California, for example, typically allows lawyers to charge between 9% and 12% of the final amount as an attorney fee. In other words, if your lawyer quotes a 12% contingency fee and you win permanent disability benefits of $100,000, the lawyer is paid $12,000 out of that award.

Contingency fees benefit injured workers in a few ways. First, the lawyer receives nothing if they lose the case—after all, 12% of zero is still zero. Since most injured workers pursue cases specifically because they cannot make ends meet, this fee structure lets them off the hook when they lose their cases.

Additionally, since the lawyer must win or settle the case to get paid, they carefully analyze cases before taking them. This early review helps workers understand the potential weaknesses in their claims.

Finally, since the lawyer does not get paid until the end of the case, they will not ask for upfront payments. The worker can conserve their money for living expenses until they receive their workers’ comp disability payments.

Fee Protections for Workers

States protect workers from overpaying their lawyers. Thus, the answer to “What percentage does a workers' comp lawyer get?” will depend on your state and the protections it has in place.

Many states have caps on legal fees in workers’ comp cases. This cap can be a dollar amount or a percentage. If your lawyer charges a fee above the cap, they must explain why the number is so high. Complicated cases, like proving that your cancer resulted from exposure to AFFF in the workplace, might justify a higher fee.

Some states also require approval of all attorneys’ fees. When the commissioner or judge approves a workers’ comp settlement or award, they will also look at the fees charged by the worker’s lawyer. They will allow reasonable fees and either deny or request additional information if the fee seems unreasonable.

Paying a Workers’ Comp Lawyer

In most workers’ comp cases, the contingency fee is deducted from the worker’s award. Specifically, an insurer will typically pay the award to the lawyer’s office. The lawyer will deduct the fees approved by the workers’ compensation board or commission and send the rest to their client.

Some states also have rules allowing judges to shift fees from the worker to the insurer or employer. In most jurisdictions, the board or commission can order the insurer or employer to pay the worker’s attorney fees only under certain conditions.

For example, say that the insurer denied the claim, forcing the worker to hire a lawyer and seek a hearing to reverse the denial. The judge or commissioner could reasonably conclude that the insurer’s incorrect denial caused the worker to hire a lawyer and order them to pay the worker’s attorney fees.

Contact ConsumerShield to Learn More

You may need a lawyer’s assistance to stand up to powerful insurance companies with infinite resources. Fortunately, most states provide options for hiring a lawyer for a reasonable fee. ConsumerShield can help you find a workers’ comp lawyer. Contact us for a free case evaluation.