Sometimes, injured workers delay hiring a lawyer because of concerns about attorneys’ fees. However, Pennsylvania workers’ compensation laws are designed to make hiring a lawyer possible, by keeping attorneys’ fees relatively low and making them contingent on a recovery. If you need help with your claim, you should contact an experienced workers’ comp lawyer.
In Pennsylvania, all workers’ compensation lawyers are paid on a contingency fee basis. This means that the lawyer is not paid unless you settle your case or receive an order from a workers’ comp judge granting benefits. Instead of charging you an hourly rate for his or her services, the lawyer gets a portion of your settlement or your award. Additionally, most workers’ compensation lawyers will meet with you for an initial consultation for free.
The maximum workers’ comp fee in Pennsylvania is 20%. If you win your claim after a trial, the fee may include up to 20% of your ongoing weekly benefits for a period of time. (Attorneys’ fees in workers’ comp cases are lower than in personal injury lawsuits, where the lawyer typically charges 33% to 40%.)
Sometimes, lawyers will agree to a reduced fee, especially if your dispute is minor and your claim can be quickly resolved. Additionally, some labor unions have negotiated decreased workers’ comp attorneys’ fees for their members. (See our article Can I Negotiate the Attorney's Fees in My Workers' Compensation Case? for more information.)
Legal costs are different than attorneys’ fees; they are the costs of pursuing your case. These costs include expert witness fees (for example, for doctors who testify at a deposition or hearing), court reporter fees for transcribing depositions, and appeal filing fees.
While your lawyer can try to limit legal costs, they are usually unavoidable. Developing a workers’ compensation case for trial typically requires medical evidence and expert testimony. Without this information, it could be impossible to win your claim.
Most workers’ comp lawyers will not ask you to cover costs up front. Instead, they will pay for legal costs and deduct them from your settlement or award. Additionally, most lawyers will forgive the costs if you do not receive a settlement or award. However, this is not always the case, so be sure to ask your lawyer about how costs are handled before you hire him or her. (For more information, see our article Who Pays for the Costs of Pursuing a Workers’ Compensation Case?)
You should discuss fees and costs with your lawyer at your initial consultation, before signing a fee agreement. If you are considering a settlement, your lawyer should also explain how much in attorneys’ fees and costs will be deducted before you have a settlement hearing. Below is an example of how a typical settlement might be distributed.
Example: A lawyer negotiates a $50,000 settlement. The lawyer spent $2,000 on depositions, expert witness fees, and court reporter costs. A workers’ comp judge might approve the following distribution:
Additional sums might be withheld from your portion of the award to pay for unpaid medical bills, unpaid child support, and Medicare set-aside agreements. (For more information, see our article on what will be taken out of workers’ comp settlements.)
If you can prove that the insurance company unreasonably denied your claim, the workers’ compensation judge may order the insurance company to pay your lawyer’s fees. You must have evidence proving that the insurance company’s denial was frivolous or in bad faith.
A workers’ compensation judge must approve your lawyer’s fees. The judge will review your signed fee agreement and a statement of your legal costs. If your case goes to trial, the judge will approve fees and costs in the written decision. If your case settles, legal fees and costs will be included in the settlement paperwork, which must be reviewed by the judge at a settlement hearing.
