In New York workers' compensation cases, you generally do not have to pay your lawyer to represent you at a hearing. Under Workers' Compensation Law § 13-b, attorneys' fees are paid by the insurance carrier and are typically a percentage of the award or a scheduled fee set by the Board, approved only after the claim is accepted or a finding of liability. You may be responsible for costs in limited situations if the claim is unsuccessful, but you do not pay upfront legal fees. Below are key details about how fees work and what to expect if your case proceeds to a hearing.
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How Attorney Fees Work in NY Workers' Compensation
Workers' compensation claims in New York operate on a no-cost basis to the injured worker for legal representation. The system is designed so that if your claim results in an award or schedule of payments, the carrier or its insurer pays the attorney's fee as part of the overall compensation. This means:
- Your lawyer is not paid hourly or on contingency in the way typical in civil lawsuits; instead, fees are calculated as a percentage of the compensation awarded.
- Before any fee is charged, the Fee Petition and Stipulation must be approved by the Workers' Compensation Board (Board).
- If the claim is denied and you do not receive any benefits, you usually will not owe a fee, though you may still be responsible for minimal case expenses if the carrier is later found liable.
Fee Schedule and Caps
Fees are either a set percentage of the award or a negotiated fee approved by the Board, subject to statutory caps. The following table summarizes typical fee arrangements in accepted claims:
| Compensation Award or Settlement | Typical Attorney Fee (Statutory or Agreed) | Approval Required |
|---|---|---|
| 100% of indemnity benefits awarded | 15–20% of the award | Board approval via Fee Petition |
| Scheduled Loss Award (SLA) | Percentage of SLA or flat fee | Board approval required |
| Medical benefits only | Lower fee or nominal fee | Board review on a case-by-case basis |
| Claim denied; no award | Typically $0 in fees to attorney | N/A |
When You Might Be Responsible for Costs
While attorneys' fees are generally covered, you could be responsible for certain costs if the claim moves forward and the carrier is later found liable. These may include:
- Filing fees associated with the Form NC-10 or petition;
- service of process fees; and
- stenographic costs for the hearing if required.
Key Takeaways Before Your Hearing
- You should not pay your lawyer upfront to take your case to a hearing.
- Attorney fees are paid from the compensation award or schedule of payments, not from your pocket.
- If the claim is denied and you receive no benefits, you typically will not owe a fee, though exceptions can apply to costs.
- Always review the Fee Stipulation with your attorney and confirm Board approval status before proceeding.
If you are preparing for a hearing, discuss the specific fee arrangement and any potential out-of-pocket costs with your attorney so there are no surprises. Most workers in New York proceed through hearings without paying their lawyers directly, relying on the statutory fee structure that protects both the worker and the attorney's compensation model.