Hiring a lawyer to handle your workers’ compensation case is a major decision. Our national survey showed that having a workers’ comp lawyer resulted in higher compensation. Even so, you’ll want to know how much an attorney will cost you. California has specific rules governing how much lawyers can charge in workers’ compensation cases. This article explains those rules, so you can make an informed decision about whether to hire an attorney to handle your case.
In California, workers’ comp lawyers must provide a free initial consultation to injured workers. It’s important to come prepared to this meeting with a workers’ comp attorney with a list of questions and information about your case. The lawyer will evaluate your case and should give you an idea as to whether it’s simple enough to handle on your own or whether you’ll need the legal assistance. At the same time, you should use this consultation as an opportunity to decide whether you want to work with that attorney.
As a rule, workers’ comp lawyers in California are paid on a “contingency fee” basis. This means your attorney will generally receive a percentage of certain benefits that the lawyer has won for you. You don’t pay by the hour, and you don’t pay any fees if you lose your case. A workers’ comp judge must approve the amount of your attorney’s fee (more on that below).
Only some workers’ comp benefits are considered when calculating the lawyer’s fee. The attorney will get a percentage if you receive a settlement, a permanent disability award, or a death benefit for a relative who died from work-related injuries. Usually, no fees are taken out of your medical benefits or temporary disability payments—except to the extent that the lawyer had to work to get those benefits for you because the insurance company balked at paying.
If the insurance company requires you to attend a deposition in your workers’ comp case, your attorney will be paid an hourly fee for coming with you. However, the insurance company will pay this fee.
When you’ve reached a settlement or received an award after a hearing, your lawyer will ask the workers’ comp judge to approve the fee. When deciding whether the percentage is reasonable, the judge will look at the time and care your claim required, the results your lawyer obtained, and the complexity of your case. In average cases, the fee usually ranges between 9% and 12%. More complicated cases—such as those involving multiple employers, detailed investigations, or tricky legal issues—may justify a 15% award of attorneys’ fees, while fees may be lower than 9% in very simple cases.
Because the fee isn’t approved until the end of your case, you won’t know ahead of time exactly how much it will be. However, a good workers’ comp attorney should tell you from the outset the percentage of fees the lawyer will request.
In addition to your lawyer’s fee, there are out-of-pockets costs for pursuing a workers’ comp case. Your lawyer will typically pay these costs up front. In California, the insurance company must reimburse you (or your attorney) for any costs related to proving medical issues that the insurance company has disputed. These “medical-legal costs” include fees for doctors’ testimony, medical evaluations, diagnostic tests, medical reports and records, and interpreters’ services when necessary.
