How Much Does a Workers’ Compensation Lawyer Charge in New Jersey?
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How much does a workers’ compensation lawyer charge in New Jersey?
Under state law, workers’ compensation lawyers are capped at the amount they can charge for handling a case. A New Jersey workers’ compensation lawyer fee is set by the Court at the time of settlement and cannot be fixed at more than 20 percent of the benefit award or settlement. For example, if you hire a workers’ comp lawyer and end up receiving a lump-sum settlement of $10,000, the most an attorney’s fee would be is $2,000. Of course, you should discuss a lawyer’s fees in advance before they begin working on your case, so you can clearly understand how the billing structure works.
There are a few additional things to keep in mind when thinking about New Jersey workers’ compensation attorney’s fees. First, the vast majority of workers’ compensation lawyers handle cases on a contingency basis. This means that the lawyer will not charge you anything upfront to bring the case and will only get paid if they are successful in getting you a settlement award. In some cases, the lawyer will also agree to cover litigation costs, making the cost of bringing the claim effectively zero. Most lawyers who advance litigation costs only recoup these expenses if you obtain a settlement award. However, any fees that the lawyer paid on your behalf do not count towards the lawyer’s 20 percent fee.
To use the above example, assume your lawyer advanced litigation costs of $1,000, and you received the same $10,000 lump-sum settlement. In this case, your lawyer would charge 20 percent from the settlement amount ($10,000), and you would also owe them for the costs they already paid for ($1,000), leaving you with $7,000. The benefit of having a lawyer advancing litigation costs is that you do not need to pay for the expenses upfront. If your lawyer does not obtain a settlement award on your behalf, you are not responsible for paying the lawyer back for these litigation expenses.
Other Workers’ Compensation FAQs:
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- Am I Eligible For Workers’ Compensation If I Am Hurt While Working From Home in New Jersey?
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- Are Workers’ Compensation Benefits Taxable?
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