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Irrespective of the industry you work in, there are chances you may hurt yourself due to reasons out of your control. In such situations, you are entitled to compensation from your employer. However, your employer may deny your claim or offer significantly reduced compensation for the damages you incur. In any case, the best way to deal with workers’ compensation disputes is by hiring a legal professional.
When most people think of hiring a workers compensation lawyer, the first thought that pops up in your mind is, “what will the attorney charge?” This is one of the biggest concerns when hiring a lawyer for a case. And the concern is justified in many areas of law. However, workers’ compensation attorneys are much more affordable than lawyers practicing in other areas. Besides this, hiring a workers’ compensation attorney will significantly improve your chances of recovering fair compensation from your employer and their insurers. The compensation you receive when hiring a workers’ compensation attorney, in most cases, covers the lawyer fees and leaves the plaintiff with enough money to bear their medical expenses and lost wages. On the other hand, not hiring a workers’ compensation attorney could leave you in financial hardship and result in you losing your job. However, hiring a workers’ compensation lawyer is not essential in every case. You can know more about when to hire a workers’ compensation attorney here.
Let’s take a closer look at what payment models lawyers use and what other legal costs you may incur during your workers’ compensation lawsuit.
Most workers’ compensation attorneys use the contingency fee model to charge their clients. Under this model, the workers’ compensation attorney will only charge you if you win the case. This model eliminates the need for substantial up-front payments and allows injured workers with limited financial resources the opportunity to stand and fight against their unjust employers. When you are charged under this model, the lawyer will take a percentage of the workers’ compensation you receive after winning the case. The percentage charged by a workers’ compensation attorney varies from state to state. Generally, the percentage charged by a workers’ compensation attorney on a contingency basis ranges from 10 to 35%.
Every state has different regulations in place that dictate the payment a workers’ compensation attorney can charge. This is done by capping the amount an attorney can charge in workers’ compensation cases. These limits are significantly lower than other similar types of cases.
The states monitor the fees through judges who preside over the workers’ compensation lawsuit. Typically, judges presiding over the lawsuit are required to approve the lawyer’s fees. A judge evaluates various aspects of the case, such as the complexity of the lawsuit, the time that the lawyer dedicated to the case, the compensation awarded, and the work a lawyer put in for the case. Generally, the maximum percentage an attorney can charge varies from 10%-20% in most states. However, some states do not have a maximum percentage limit, while others may have higher capping limits. A rule of thumb that is followed across states for determining the lawyer’s fees is based upon when the case comes to an end and how complicated it was. This means that a workers’ compensation attorney should demand a lower percentage in fees if the case is settled before an administrative hearing and a comparatively higher percentage if the lawsuit goes to a trial in a circuit court.
Besides capping the attorney fees, some states have laws that prohibit workers’ compensation lawyers from charging the plaintiff for obtaining benefits that the employer or their insurer has not disputed. Some states also allow lawyers to request the judge to order the defendant (employer or insurer) to pay an additional amount to them when the defendant behaves unreasonably. A few instances where a lawyer can ask a judge to be paid an additional fee by the defendant are:
There are no percentage caps applied to these payments as these do not form a part of your compensation.
Besides the attorney fees, you will bear the cost of other out-of-pocket expenses that the workers’ compensation lawyer will bear for furthering your case. Some common expenses you will incur are:
You will be required to pay some additional costs not covered under the paid agreement with the attorney. Most law firms and attorneys take care of these expenses as and when they come and deduct them after you receive the final compensation. Unlike the contingency fee model, some lawyers may want you to reimburse them for these expenses even if you lose the case.
You must clear the terms of paying the additional legal expenses when you file the payment agreement with them. You should clearly understand what the agreement would cover, including who will pay the legal expenses and when the attorney expects them back if they agree to cover them for you. An effective way to counter the problem is to ask your attorney to provide a rough estimate of the legal expenses that would be required to be paid for a case like yours.
