Workers’ comp cases do not require an upfront retainer payment to your lawyer; rather, their fee will be deducted directly from your award or settlement amount.
Judges review and approve attorneys’ fees based on the complexity, time spent, and results achieved for a permanent total disability award in New Jersey. Currently, that fee stands at only 8% of its value.
The Employer
As injured workers recuperate, their families often worry about how they will provide for themselves while also seeking expensive medical treatments. Their worries are understandable; severe injuries often have lasting consequences.
Laws exist that enable injured workers to focus solely on recovery without worrying about financial concerns. Reputable workers’ compensation attorneys work on contingency fee basis; that means their fees only become payable if their client wins benefits from them.
Attorney fees are set by law at 15% of any permanent disability award and up to one-third of weekly worker’s comp checks, providing injured workers with access to quality legal representation and providing lawyers an incentive for winning maximum benefits possible. Furthermore, workers’ compensation judges must approve any attorneys’ fees before being collected.
The Insurance Company
Accident victims may seek benefits through their state’s workers’ compensation system. To do so, they should hire a workers’ compensation attorney on a contingent fee basis; that means the lawyer only receives payment if compensation for their client is recovered.
Contingent fee agreements offer injured workers a way to hire legal representation without having to make substantial upfront payments for it. Workers’ compensation attorneys are then paid depending on how much compensation their clients recover, providing an incentive for them to do everything in their power to secure maximum compensation for them.
If a lawyer successfully negotiates and secures a lump sum settlement, the Department judge may approve up to 20% of the gross lump sum or 15% in cases with liability (which means future medical bills will still be covered by insurance company). All attorney fees charged in workers’ comp cases must first be approved by Department judges before being collected from injured workers.
The Claimant
Though you may feel anxious about legal fees, remember that workers’ comp attorneys work on a contingent fee basis; that means they only get paid when benefits are recovered on your behalf through settlement or court decisions. They do this through the Workers’ Compensation system which allows them to collect their fees directly from insurance companies upon resolution of cases by either settlement or adjudication by a Workers’ Compensation Law Judge.
State law dictates the amount of the lawyer’s fee, with most states setting this figure at no more than 20% of your lump sum award. When your insurer continues to provide weekly benefits, however, your lawyer may charge a percentage of total permanent disability award instead. Furthermore, they can seek reimbursement of expenses related to your claim.
The Attorney
Reputable workers’ comp attorneys don’t expect you to pay their services upfront; rather, they work on contingency basis and only charge fees or awards in your favor if they win settlement or awards for injuries sustained on the job.
Attorney fees set by statute in cases of lump sum awards vary – typically 20% for “schedule loss of use”, or 15% if permanent total or permanent partial disability claims. A fee application must also be submitted with any such cases.
Insurance companies will attempt to disprove your claim on every possible front, such as using excuses such as not being injured while at work or preexisting conditions as justifications for not covering it. Your best chance for equalizing the playing field lies with hiring a specialized workers’ compensation attorney with sufficient resources and knowledge in pursuing all benefits available to you in full.