How Do You Pay for a Pennsylvania Workers’ Compensation Attorney to Represent You?
Most Pennsylvania workers’ compensation attorneys work on a contingency fee basis, which means you do not pay any upfront legal fees. Instead, your attorney is paid a percentage of the benefits or settlement they recover for you, and if no recovery is made, you generally do not owe an attorney’s fee. In Pennsylvania, attorney fees in workers’ compensation cases are typically capped at 20% and must be approved by a Workers’ Compensation Judge.
Do I Have to Pay Upfront for a Workers’ Compensation Lawyer?
When you are injured at work and need legal representation, one of the first questions you may ask yourself is, “How will I afford an attorney?”
The good news is that most Pennsylvania workers’ compensation attorneys work on a contingency fee basis. This means that you do not have to pay money out of pocket to hire a lawyer to represent you in your workers’ compensation case.
Instead, the attorney only receives a fee if benefits are recovered on your behalf.
How Does a Pennsylvania Workers’ Compensation Lawyer Get Paid?
In a Pennsylvania workers’ compensation case, your attorney will likely charge a contingent fee. This means that the only time the attorney receives money for your case is if they win the case for you.
If they lose the case on your behalf, they will not get paid and will not charge you any money out of pocket.
In Pennsylvania, workers’ compensation attorneys are generally not permitted to charge more than a 20% fee. This is significantly different from many personal injury cases, where attorney fees are often 33% or more of the recovery.
In a Pennsylvania workers’ compensation claim, wage-loss benefits and medical benefits may be awarded. In most circumstances, Stern & Cohen only takes a fee on wage-loss benefits, meaning payment of your medical bills is generally not affected when you hire an attorney.
Once you and an attorney at Stern & Cohen decide that representation is appropriate, you will sign a Contingent Fee Agreement stating that Stern & Cohen will receive 20% of benefits recovered on your behalf.
What Happens if My Workers’ Compensation Case Is Successful?
If you and your attorney win your workers’ compensation case, the recovery is generally divided according to the approved fee agreement.
In most situations:
- You receive 80% of the benefits recovered.
- Your attorney receives 20%.
The same concept applies if your workers’ compensation case settles. If a lump-sum settlement is reached, you generally receive 80% of the settlement and your attorney receives 20%.
If the case is unsuccessful, neither you nor your attorney recovers benefits.
When Does the Attorney Fee Begin?
The timing of the attorney fee can depend on the type of workers’ compensation litigation involved.
For example, if the insurance company is not paying benefits and a Claim Petition must be filed, the attorney fee generally does not begin unless the case is won or resolved through settlement.
In situations where benefits are already being paid and the insurance company attempts to stop those benefits, legal work often must begin immediately to protect ongoing compensation. In those circumstances, the fee arrangement may begin once Stern & Cohen becomes involved.
In all situations, a Workers’ Compensation Judge must approve the Contingent Fee Agreement. Until the agreement is approved, the fee does not begin.
Do I Have to Pay Workers’ Compensation Litigation Costs?
Another concern many injured workers have is whether they will be responsible for litigation expenses.
These costs can include:
- Obtaining medical records
- Deposition transcripts
- Hearing transcripts
- Medical expert deposition fees
Fortunately, injured workers are often not responsible for paying these expenses out of pocket.
If you and your attorney win your case, the Judge may order the insurance company to reimburse reasonable litigation costs.
If the case settles, insurance companies frequently agree to pay litigation costs as part of the settlement.
If the case is unsuccessful, Stern & Cohen generally pays the costs incurred while litigating the claim.
Can Attorney Fees Be Awarded Against the Insurance Company?
The Pennsylvania Supreme Court recently issued an opinion that slightly changed the landscape of attorney fees in workers’ compensation cases.
The Court held that attorney fees may be awarded when an injured worker prevails in certain circumstances. This means a Judge may order additional attorney fees to be paid because of wrongdoing by the insurance company.
Judges have discretion regarding when these fees are awarded, and they are typically granted only in limited circumstances. Because this area of law continues to develop, it is important to have an experienced Pennsylvania workers’ compensation lawyer who understands when it may be appropriate to request these fees.
Many attorneys believe these awards may become particularly important in cases involving disputes over medical benefits.
Free Consultation With a Philadelphia Workers’ Compensation Lawyer
There is no risk in speaking with a workers’ compensation lawyer at Stern & Cohen. The consultation is always free. During that consultation, we can determine whether we are able to assist with your case and whether a Contingent Fee Agreement is appropriate.
If you or a loved one has been injured at work, contact Stern & Cohen today. Our Philadelphia workers’ compensation lawyers help injured workers throughout Pennsylvania pursue the benefits they deserve.
FAQs
What percentage does a Pennsylvania workers' compensation lawyer take?
In Pennsylvania, workers’ compensation attorney fees are generally limited to 20% and must be approved by a Workers’ Compensation Judge.
Do I pay a workers' compensation lawyer if I lose my case?
Generally, no. If benefits are not recovered, workers’ compensation attorneys working under a contingency fee agreement do not receive attorney fees.
Do I have to pay litigation costs out of pocket?
Typically, no. If the case is successful, the insurance company may be ordered to pay reasonable litigation costs. In many settlements, litigation costs are also paid by the insurance company.