Many injured employees wonder whether it’s worth it to hire a lawyer for their workers’ compensation cases. On the one hand, it can be difficult and time-consuming to fight an insurance company—and its lawyer—on your own. On the other hand, hiring a lawyer means giving up a portion of your workers' comp benefits. We recently surveyed readers who had work-related injuries or illnesses to find out whether they fared better with a lawyer, by how much, and whether they believed an attorney was worth the cost.
Our survey showed that readers who hired lawyers collected significantly larger settlements or awards than those who went through the process on their own. Readers who had an attorney's help received an average of $23,500 in compensation, while those without legal representation received an average of only $18,000. That's a 30% increase in benefits for those who hired a lawyer.
It makes sense that injured employees would benefit from the expertise of a workers’ comp lawyer. Lawyers who specialize in this area have experience negotiating with insurance companies. They also know all the ins and outs of the workers' comp system, including:
Another factor may also play a role in the compensation difference shown in our survey: Employees with more serious injuries (which lead to higher compensation) may be more likely to hire lawyers.
Hiring a lawyer comes at a cost. But your attorney can't collect if you don't win a settlement or award, and the fee will come out of your workers' comp benefits. In almost all states, workers' comp lawyers charge what's known as a "contingency fee," which means the attorney receives a certain percentage of your overall settlement or award. To protect injured workers, most states place a cap on the percentage (usually 10% to 20%) or total amount of fees. Also, fees generally can't be taken out of routine benefits that the insurance company hasn't disputed (like medical benefits or temporary disability).
Our readers reported that an average of 15% was taken out of their settlements or awards for attorneys’ fees. Moreover, even when factoring in those fees, it appears they ended up pocketing a larger sum than if they hadn't hired a lawyer. After taking out the average 15% fee from the average $23,500 compensation for readers with lawyers, they would be left with $20,000—more than the average compensation for unrepresented readers.
It appears that having a lawyer tends to result in more compensation across the board. But attorneys seem to be particularly helpful in certain cases, including those that involved a denied claim, disputes about the extent of permanent disability, or a workers’ comp hearing.
Injured employees face an uphill battle when their employers' insurance companies deny their workers' comp claims. They first have to show that they're eligible for benefits, and then they have to argue for the proper amount of benefits. Denied claims are unfortunately very common. In fact, our survey showed that of all readers who ultimately received a settlement or award, 47% had their claims denied at first.
Hiring a lawyer to help with a denied claim can be especially helpful. Of workers whose claims were initially denied, those who hired a lawyer later received an average of $18,200 in compensation, compared to $12,400 average for those without lawyers—a 47% difference.
One of the most hotly debated issues in many workers’ comp cases is the extent of any permanent disability from the on-the-job injury (known as a permanent disability rating). A lawyer can be particularly helpful in these cases—for instance, by challenging reports by IME doctors hired by the insurance company.
According to our survey, having a lawyer made a big difference in cases with these disputes Of those who eventually received a settlement or award, workers with disputed permanent disability ratings received an average of $18,100 when they hired a lawyer, compared to only $2,600 when they didn’t hire a lawyer. That’s nearly a 600% increase in benefits.
Workers' comp cases often are resolved through a settlement agreement with the insurance company. But when cases do go to a formal hearing, our survey showed that readers had much better outcomes when they were represented by a lawyer. For readers who attended a hearing and received an award, the average award was $27,400 for those who had lawyers, compared to $15,700 for those who went through the process on their own. That's not surprising. Experienced workers' comp lawyers understand the detailed hearing procedures, and they know how to present good evidence, question witnesses effectively, and make strong legal arguments before the judge.
You might expect that hiring a workers’ comp lawyer would speed up your case, but the opposite is actually true. According to our survey, workers’ comp cases took nearly six months longer to conclude when a lawyer was involved. On average, cases resolved in 17.9 months with a lawyer and 12.2 months without a lawyer.
Because lawyers have more knowledge about the workers’ comp system and more tools at their disposal, it makes sense that they would add time to a workers’ comp case. When faced with an insurance company that refuses to budge on its position, the lawyer may take several actions, including:
While these extra steps take more time, they can also lead to more compensation.
We asked readers how they felt about their lawyers and the outcome of their workers' comp cases. They were fairly evenly split between those who were satisfied and dissatisfied. But of those who were satisfied with the outcome, 69% had hired lawyers. This isn't too surprising given the higher settlements received by those with legal representation.
While surveys are helpful in determining current trends and practices, they can’t predict the outcome of your individual workers’ comp case. The amount you receive will depend on many factors, including your state, the nature and severity of your injury, whether you hire a lawyer, and the lawyer you choose. When asked for advice to other injured workers, many of our readers recommended hiring a lawyer at the start of the case and interviewing multiple attorneys before choosing one. (Learn tips on how to select a workers' comp lawyer.)
