How Do Workers’ Compensation Lawyers Get Paid?

After a workplace accident left you injured, you might ask yourself, “Do I need an injury lawyer or a workers’ comp lawyer?” This question goes beyond the need for legal representation in pursuing compensation. Usually, the bigger concern is how to pay a workers’ compensation lawyer if you decide to hire one.

Workplace injuries can have devastating consequences. They can leave you and your family with mounting medical bills, lost wages, and pain and emotional turmoil. California workers may have the right to seek workers’ compensation benefits to pursue claims from these losses.

Unfortunately, asserting this right can be tricky and complicated, especially if you have little to no legal knowledge and experience. Your employer and the insurance company may challenge the validity of your injury claim. They conduct an independent investigation into your accident and give you an offer based on their observations.

Considering all these factors, you may want to consider hiring a personal injury attorney to advocate for your rights. You may have some questions that can clarify which option would be suitable for your specific circumstances. If you are thinking of pursuing a legal claim, you may also be wondering how workers’ compensation lawyers get paid. This question is frequently asked, mainly because it also touches on whether their prospective lawyer would have their interests at heart.

How Much Do Workers’ Compensation Lawyers Charge In California?

Lawyers who handle workers’ compensation work on a contingency fee basis. This means they only get paid when they successfully obtain compensation for their clients. If they lose, they don’t get paid. This arrangement may incentivize them to work diligently to pursue fair compensation for their client.

Depending on various factors, workers’ comp lawyers usually get a certain percentage of the settlement or award. Some personal injury attorneys in California also operate under the same fee structure.

Your workers’ compensation lawyer can discuss the fees during your initial consultation. They can charge attorneys’ fees for workers’ compensation cases on the following:

A workers’ compensation lawyer’s fees are limited by state law. The fee percentage needs to be approved by the judge.

How Do The Lawyers Get Paid From The Workers’ Compensation Claim?

It’s important to note that workers’ comp lawyers do not directly deduct their fees from the amount they have pursued for you. Instead, they follow a legal process to acquire the payment they’re owed after the resolution of your workers’ compensation case.

The Workers’ Compensation Appeals Board will first have to approve the attorney’s fees after considering the following factors:

• The responsibility assumed by the attorney.
• Level of care exercised in representing the client.
• Time involved.
• Results obtained.

Basically, it all boils down to how good a job your attorney did in representing you. If they performed exceptionally well, they might be able to justify a higher percentage.

Factors That Affect Lawyer Fees For Worker Compensation

The percentage that workers’ comp lawyers might charge varies according to different factors, such as:

Complexity Of Your Case

If your case is relatively straightforward, the lawyer may have lower fees. Otherwise, they might earn more for complex cases involving highly disputed facts, lengthy hearings, extensive investigation, multiple employers, and challenging legal aspects.

For example, workplace fire accidents are usually complicated and require a thorough investigation. They also often lead to catastrophic injuries, so accident attorneys who handle workplace-related cases might charge a higher rate.

The Stage Of Your Claim

Hiring a workers’ comp attorney at the initial stages of filing a claim is typically less expensive. On the other hand, if you have already filed your claim or want to appeal a denied claim, they might charge a higher rate.

Taking over the claims process in the later stages involves more legal work. Correcting mistakes made earlier in the process demands more time and effort from the lawyer. Seeking legal guidance early can give your attorneys more time to gather evidence and prepare your case according to their strategy.

The Lawyer’s Experience And Reputation

Generally, Workers’ comp and personal injury lawyers in California with more experience handling these types of cases have higher rates. Additionally, compared to general practice attorneys, lawyers focusing on these fields may charge higher fees.

Do Lawyers Charge Initial Consultation Fees?

Like most California injury lawyers, workers’ compensation attorneys typically offer a free initial consultation. It gives you an opportunity to seek legal guidance without upfront costs or other financial obligations.

Law firms usually arrange meetings with potential clients like you at your suggested locations. You can meet with their legal team in person at their office or at a convenient location in California, at your home, or in local coffee shops. If you aren’t available for face-to-face meetings, lawyers can assess your workers’ compensation case over the phone or via teleconference to make things as convenient as possible. They can also arrange the first meeting to accommodate your schedule.

During this consultation, workers’ comp lawyers will listen to your situation. This is also an avenue for you to ask questions and voice your concerns. To assess whether your case has merit, they will review legal grounds that may apply to your situation as well as any key evidence about the accident.

For example, they might suggest you file a personal injury claim if the accident involves negligence by a third party. They will give you the facts and their professional opinion to help you determine your next steps.

If you don’t find the accident attorneys’ assistance beneficial, you’re not obliged to hire them. Hence, you don’t need to pay them anything at all.

Does The Insurance Company Cover Attorney Fees?

In some cases, the insurance company will be required to pay a portion of the attorney’s fees. These fees are paid directly to the workplace injury lawyer and don’t come from the claimant’s pockets or compensation. This is likely to happen if your benefits are not paid within the specified time range or if they deny your claim without adequate legal grounds, and you have to get an attorney as a result.

The insurance company is also typically required to pay for the following expenses:

Deposition Fees

In a deposition, the injured undergoes questioning under oath outside the courtroom. The parties agree on a date and venue, fill out any appropriate forms, create copies, and serve all relevant individuals with documents. They must come prepared with question outlines and remain professional throughout. After the session, the court reporter drafts a transcript, which the deponent and other parties concerned will review and approve.

If the company initiates it to obtain your sworn statement, it will be required to pay for your lawyer’s time spent preparing for and attending the deposition. It’s also responsible for paying non-party witnesses for their travel expenses, witness fees, and salaries for public employees.

Deposition costs can vary widely based on various factors, such as court reporter appearance fees, expert witness expenses, and videography costs. The fees are covered by the employer’s insurance and have no bearing on the amount of the employee’s compensation.

Medical-Legal Fees

If the employer or its insurance company wants to dispute the worker’s injuries, they will have to cover the costs of any additional evaluation and expenses the worker might incur. These medical-legal expenses might include diagnostic tests and interpreter services, if needed.

The insurer will also have to pay for the services billed by a qualified medical examiner or QME, such as:

• Comprehensive Medical-Legal Evaluation
• Follow-up Medical-Legal Evaluation
• Supplemental Medical-Legal Evaluation
• Medical-Legal Testimony
• Sub Rosa Review
• Missed Appointment

The results from these tests will help prove your injuries. However, what if it results in an unfavorable outcome, giving the insurer grounds to deny your claim? If you disagree with the QME’s report, consult a personal injury attorney who handles workers’ comp cases.

Is It Worth Getting A Workers’ Compensation Attorney Who Handles Personal Injury Law?

Employers may not have their employees’ interests in mind. In contrast, a dedicated workers’ compensation attorney will safeguard the employee’s rights and legal interests. It’s worth hiring injury attorneys, whether for workers’ comp or personal injury cases, to help you with the following:

• Navigating Claims — Your lawyer will manage the filing process and paperwork. They can clarify complicated legal procedures and guide you through California’s intricate workers’ comp system. This may help you avoid common mistakes, such as missing deadlines, that can delay or derail your case.
• Handling Denials — If your claim is denied, you may benefit from consulting injury attorneys. They can help identify discrepancies in your medical report or omissions by the insurance company and then build a well-supported case for your appeal.
• Communicating & Negotiating — Your lawyer coordinates with your healthcare providers to obtain detailed information about your condition. They will deal with the insurance companies to advocate for your claim’s proper evaluation.
• Proper Benefits — An injury attorney handling workers’ compensation cases can help you pursue the full compensation available under the law. They know how to value your claim and develop a strategy to present your case effectively.
• Representing You — In trials and depositions, you may need an attorney to represent you. They can help you prepare for these processes and advocate for your rights in front of a judge.
• Helping Your Health Treatment — Going through the claims process can be stressful, especially if you’re still recovering from injuries. Your lawyer can take charge of the case on your behalf, allowing you to focus on healing.

It may be beneficial to find the right accident lawyer to handle your workers’ compensation claim. Look for a compassionate personal injury law firm that represents individuals injured in their workplace.

Workers’ Compensation Vs. Personal Injury Claims

You might wonder whether you should file a workers’ compensation or personal injury claim if you have been injured at work. While both types of claims are related, they have significant differences. Pursuing compensation for your injuries requires understanding these differences.

What Are Workers’ Compensation Claims?

Qualified employees injured or ill due to their work may be able to pursue workers’ compensation benefits. Some workplace accidents and situations that may establish grounds for claims are:

• Strains, sprains, and back injuries due to overexertion are common in labor and construction jobs.
• Head injury after getting struck by a falling package at an Amazon warehouse.
• Scaffolding collapses on construction sites, resulting in broken bones and brain injuries.
• Malfunctioning equipment, such as cranes, forklifts, ovens, elevators, heavy machinery, etc.
• Spinal cord injuries and paralysis due to falling from heights.
• Diseases like mesothelioma are due to repeated exposure to harmful chemicals.
• Burns and electrocution from workplace hazards.

Workplace violence may also be included, and employment lawyers can handle such cases.

This policy operates on a no-fault system, meaning workers can seek benefits without having to prove liability. Even undocumented workers have the right to file a claim. However, the same provisions may not apply to farm workers, independent contractors, day laborers, and others.

The catch is that employees generally can’t sue their employers for negligence. They waive their right to sue in exchange for workers’ compensation benefits.

Damages You May Pursue In Workers’ Comp Cases

A significant difference between workers’ compensation and personal injury settlements is the available damages to victims. Aside from medical bills, the following damages may be included in workers’ comp claims:

• Ongoing medical care costs
• A portion of their lost wages
• Vocational rehabilitation
• Death benefits

Compensation can also account for expenses related to complications arising from the initial injuries. These may significantly increase the total award. However, there is no guarantee you will see similar results, as each case depends on its specific facts and circumstances.

The amount and duration of these benefits are generally limited. These costs are usually outside the standard fee agreement with your legal team. It may be wise to ask your workers’ comp attorney how they will handle reimbursement if they win your case.

What Are Personal Injury Claims?

Personal injury claims help individuals seek compensation for their injuries and losses caused by other people’s negligence. In California, these cases are fault-based. This means the victims are required to establish the at-fault party’s negligence to pursue monetary reparation. They can also sue the potentially liable party or their insurance company for damages.

Contrary to common misconceptions, personal injury cases don’t only include car accidents. They also cover dog bites, slip-and-falls, and workplace accidents.

In the context of workplace injuries, the injured employee may consult a personal injury lawyer to see if they have the option to pursue legal action against parties other than their employer. These third parties can include co-workers, contractors, equipment manufacturers, and others who might have been negligent.

Some work-related cases that injury lawyers can handle are:

• Product liability claim against a manufacturer of defective equipment.
• Traffic accidents due to dangerous road conditions, such as at a highway construction site.
• Premises liability claim for a slip-and-fall accident on private property.
• Truck accident due to a distracted trucker and/or a negligent trucking company.

If you think there’s more to your workplace accident, you can seek the assistance of an injury lawyer. They can assess your legal options and advise you on the next steps to take.

Damages You May Pursue In Personal Injury Cases

You can seek additional damages in a personal injury claim that may not be available in workers’ comp. In addition to the medical expenses and lost wages, you can seek compensation for your pain and suffering, emotional distress, and other non-financial losses. Family members can also file claims for the wrongful deaths of their loved ones.

Furthermore, personal injury claims generally do not have statutory limits on damages, though certain types of cases may have specific caps or restrictions under California law. It may be advisable to talk to injury attorneys and ask about the full scope of your damages.

Frequently Asked Questions (FAQs)

What Is The Average California Workers’ Comp Settlement?

There is no set value of workers’ compensation settlements in California. It varies wildly, depending on the severity of the injury, the worker’s wages, and the type of accident. Employees who sustain severe injuries, like amputations, may be able to pursue higher compensation than those who suffer from minor bodily injuries, like small cuts or bruises.

Can The IRS Take My Workers’ Comp Settlement?

The Internal Revenue Service doesn’t generally take workers’ compensation settlements if you owe back taxes. According to Section 6334 of the U.S. Code, any amount payable as workers’ compensation is exempt from levy. Furthermore, these benefits are generally not taxable, similar to personal injury settlements.

What Are 5710 Fees? Will They Affect My Worker’s Comp Settlement?

The term “5710 fee” comes from Section 5710 of the California Labor Code, which provides a reasonable allowance to the claimant’s attorney in a deposition. The worker’s comp insurance provider directly pays these fees to the attorney instead of the injured worker. These fees are not deducted from the employee’s settlement value.

Does Surgery Increase The Workers’ Comp Settlement Value In California?

Having or needing surgery can affect your compensation amount, as these procedures generally involve higher medical costs and longer periods of health treatment. In general, the higher the expenses you incur for your work-related injury, the higher your workers’ comp settlement. However, the actual value will vary depending on the type of surgery.

Does Workers’ Comp Pay For Pain And Suffering In California?

Workers’ compensation doesn’t pay for pain and suffering and other non-economic losses, such as depression and loss of purpose. However, you might be able to pursue these damages through a personal injury claim. Consider consulting a personal injury attorney to assess whether you may have a valid case for a third-party lawsuit.

Here’s an example scenario: You were cleaning the parking lot at your workplace as part of your job’s duties when a speeding car hit you. As a result, you sustained whiplash and traumatic brain injuries. In this case, you may be eligible for both workers’ comp from your employer and a personal injury claim against the at-fault party. The latter would allow you to pursue non-economic damages, including the psychological effects of your brain injury, with the help of a skilled car accident lawyer.

Do All Workers’ Comp Cases End In A Settlement In California?

Workers’ comp cases may end in a settlement either through a lump sum agreement or weekly payments. You may be able to justify a claim for compensation if you are hurt at work or develop an illness due to your duties or environmental hazards.

That said, there are certain situations where workers’ compensation may not legally apply, such as if you were under the influence of alcohol or drugs, roughhousing, or injured outside your scope of work at the time of the incident. Some examples of situations that are not covered are:

• You were drunk while driving to an off-site meeting, causing a head-on accident.
• You sustained a work injury while using equipment not designed for that purpose, such as using a forklift to transport other warehouse personnel as passengers.
• You got into a rear-end collision while driving your car for personal errands during a workday.

You may have legal options if the claims administrator refuses to accept a settlement even though your case should qualify you for workers’ compensation. A personal injury attorney who handles workplace accidents can represent you.

Can I Seek Unemployment Benefits After A Workers’ Comp Settlement In California?

In some cases, yes. However, this is subject to fulfilling California’s unemployment eligibility requirements. To qualify for unemployment insurance (UI) through the Employment Development Department (EDD), you must be physically able to work, available, and actively seeking employment. Generally, you won’t qualify for unemployment benefits if your workplace injury still prevents you from working.

If your workers’ compensation case has settled and you’ve recovered enough to return to work, you may be eligible for unemployment benefits once your temporary disability payments stop. However, if your injury still prevents you from working, you won’t be eligible.

However, some workers’ comp settlements are finalized through a Compromise and Release agreement. In these cases, your employer may request a voluntary resignation from you. If you sign the agreement, you may not be eligible for unemployment benefits since you resigned voluntarily. Although they are rare, there may be some exceptions if you can demonstrate that you had “good cause” for leaving.

Lastly, since unemployment and temporary disability benefits replace lost wages, you cannot receive them simultaneously.

Can You Work While On Workers’ Comp In California?

Yes, you may be able to work while receiving workers’ compensation benefits in California. However, this is contingent upon your medical restrictions and the nature of your work. If your doctor approves you for light duty, your employer may assign you tasks that meet this description.

However, while receiving workers’ compensation, an employee is not permitted to work in a manner that violates their medical restrictions or earn unreported income. If they do this, they could face serious legal and financial repercussions due to potential fraud.

It’s not entirely impossible to work in some capacity, whether in a part-time or reduced role. Still, your doctor will need to clear you to return to work. Your employer must also be willing to accommodate your needs, such as by purchasing new equipment or assigning you new job duties.

Contact Our Workers’ Compensation Attorneys

If you’ve suffered a workplace injury in California, Arash Law can help you explore your options. Our workers’ comp attorneys handle work-related injury claims diligently, pursuing fair compensation based on your specific circumstances. Our experienced litigation team can represent you in court to advocate for your interests in your workers’ compensation case, if necessary.

Attorney fees should never be a barrier when coping with the aftermath of a workplace injury. At our firm, we fully understand the financial strain such injuries can cause. We operate strictly on a contingency fee basis, meaning you won’t be charged for the services of our attorney unless compensation is obtained through a settlement or verdict. However, certain case-related expenses may still apply.

Call us at (888) 488-1391 for your free initial consultation.