After you’ve suffered a workplace injury or learned that your job has made you sick, one of your first important decisions will be whether to hire a lawyer to handle your workers’ comp case. Our national survey showed that, on average, having a workers’ comp lawyer results in higher compensation. But how much will an attorney cost you?
Like all other states, Texas has specific rules governing how much lawyers can charge in workers’ comp cases. This article explains those rules, so you can get idea of what to expect.
Most workers’ comp lawyers provide initial consultations without charge. You should prepare for this meeting with a workers’ comp attorney by gathering all of the information about your claim and a list of questions. After evaluating your situation, the lawyer should give you an idea as to how complicated your case might be. This can help you decide whether you can pursue your claim on your own or whether you need a workers' comp attorney's help. An initial consultation is also a good opportunity to decide whether a particular lawyer is a good fit for you.
Workers’ comp lawyers in Texas are paid only if they win benefits for their clients. As a general rule, your lawyer will be paid out of your “recovery”—the benefits you received in a settlement or an award after a contested case hearing, not including the value of medical benefits or any undisputed benefits your employer’s insurer paid without your lawyer’s help.
After you’ve agreed to a settlement or a judge has awarded you workers' comp benefits, your lawyer will submit an application for fees to the Texas Division of Workers’ Compensation (DWC), along with evidence supporting the application. If the DWC approves the fees (more on that below), it will send the bill to the insurance company. The insurer will then pay your lawyer directly and deduct the amount of the fee from your settlement or award.
In limited situations—when the insurance company loses after contesting certain benefits or appealing a final award to the courts—Texas requires the insurer to pay your attorney’s fee without deducting it from your recovery. (Tex. Labor Code §§ 408.147(c), 408.221, 28 Tex. Admin. Code § 152.3 (2019).)
In almost all U.S. states, workers’ comp attorneys are paid a percentage of the compensation received by their clients. The system is somewhat different in Texas, where lawyers calculate their fee based on the number of hours they work on a case. However, the fee may not exceed 25% of the injured employee’s recovery.
In addition, the DWC must consider state guidelines when approving or denying fee applications. Under the current Texas guidelines, the maximum hourly rate is $200 for attorneys and $65 for legal assistants. The guidelines also set a limit on the number of hours attorneys can bill for certain tasks, like preparing a settlement agreement or representing you in a contested case hearing. Attorneys who want to bill for more than those limits must convince the DWC that the higher amount is justified.
The DWC will review the bills to make sure that the requested fees are reasonable and necessary, after considering a number of factors including:
You, your attorney, or the insurance company may challenge the DWC’s decision on the fee application by requesting a contested case hearing on the issue. (Tex. Labor Code § 408.221, 28 Tex. Admin. Code §§ 152.3-152.4 (2019).)
Besides the cost of your lawyer’s time and efforts on your behalf, there are other costs involved in pursuing a workers’ comp case, such as witness fees, court reporters’ fees, the costs of getting certain medical reports, and investigation services. Your lawyer will generally pay for out-of-pocket expenses up front and then include them in the application for fees (if they’re allowed under Texas guidelines). If the DWC approves the expenses, they will be deducted from your recovery as part of the attorney’s fee. (Tex. Labor Code § 408.221(b), 28 Tex. Admin. Code § 152.5 (2019).)
The DWC’s website provides useful information about workers' comp in Texas, including relevant claims forms, FAQs, and details on dispute resolution.
