The Short Answer
Most Massachusetts workers’ compensation lawyers, including those at Jim Glaser Law, don’t charge injured workers an hourly fee or require payment to begin a case. How the lawyer is paid depends on how the claim proceeds. In some disputed claims, the insurance company must pay a statutory attorney fee. If the case ends in a lump-sum settlement, the lawyer may receive up to 15% or 20% of the settlement, depending on whether the insurer accepted or was found liable.
These fees are regulated by M.G.L. Chapter 152, Section 13A. Attorney fees may also be separate from expenses incurred while developing the claim, so an injured worker should review the written fee agreement before hiring a Massachusetts workers’ compensation lawyer.
Key Takeaways
- Massachusetts workers’ comp lawyers generally don’t require an upfront retainer or charge injured workers by the hour.
- If a claim settles before the insurer accepts liability or a qualifying decision establishes liability, the attorney fee is limited to 15% of the settlement.
- If a claim settles after liability has been accepted or established, the attorney fee is limited to 20% of the settlement.
- The insurer may be responsible for a statutory attorney fee when it contests a claim, and the employee obtains a qualifying payment, order, or decision.
- Attorney fees and case expenses are different. The fee agreement should explain how expenses such as medical records, depositions, and physician testimony will be handled.
Table of Contents
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How Are Massachusetts Workers’ Comp Lawyers Paid?
- Do Workers’ Comp Lawyers Charge Upfront or Hourly Fees?
- Attorney Fees When a Workers’ Comp Case Settles
- Examples of Massachusetts Workers’ Comp Settlement Fees
- Attorney Fees During a Disputed Workers’ Comp Claim
- What Happens If the Employee Files an Appeal?
- Can Attorney Fees Be Deducted From Workers’ Comp Benefits?
- Are Case Expenses Included in a Workers’ Comp Lawyer’s Fee?
- How Much Would You Receive After Attorney Fees?
- Is Hiring a Massachusetts Workers’ Comp Lawyer Worth the Cost?
- Questions to Ask About a Workers’ Comp Lawyer’s Fees
- FAQs: Massachusetts Workers’ Comp Lawyer Costs
- Discuss the Cost of Your Workers’ Comp Case With Jim Glaser Law
How Are Massachusetts Workers’ Comp Lawyers Paid?
M.G.L. Chapter 152, Section 13A regulates attorney fees for employees pursuing workers’ compensation benefits. The applicable fee arrangement depends on whether the claim settles, whether the insurance company contests it, how far the dispute proceeds, and which party obtains a favorable result.
In some cases, the insurer pays a statutory fee directly to the employee’s lawyer. If the employee accepts a lump-sum settlement, the attorney’s fee generally comes from that settlement and can’t exceed the percentage allowed by Massachusetts law.
Do Workers’ Comp Lawyers Charge Upfront or Hourly Fees?
Massachusetts workers’ comp lawyers generally don’t charge injured employees by the hour or require an upfront retainer. Many offer a free initial consultation and receive a fee only after obtaining compensation or a favorable result for the employee.
This arrangement is commonly described as a contingency fee because payment is tied to the outcome of the claim (i.e., contingent on the success of the claim). A Massachusetts workers’ compensation attorney isn’t always paid through a percentage of the employee’s compensation, though. Depending on what happens during a disputed claim, the insurer may instead be required to pay a statutory attorney fee.
The lawyer should provide a written fee agreement explaining when a fee may be charged, who is responsible for paying it, and how any separate case expenses will be handled.
Attorney Fees When a Workers’ Comp Case Settles
Percentage-based attorney fees apply when the insurer and employee resolve a claim through a lump-sum settlement. The maximum percentage depends on whether the insurer has accepted liability or liability has been established through a qualifying decision.
| Settlement circumstances | Maximum attorney fee |
| The settlement occurs before the insurer accepts liability or before a qualifying decision establishes liability | 15% of the settlement |
| The settlement occurs after the insurer accepts liability or a qualifying decision establishes liability | 20% of the settlement |
“Accepting liability” generally means that the insurer has agreed that it is legally responsible for paying workers’ compensation benefits for the employee’s injury. Liability may also be established through a decision by an administrative judge, the Reviewing Board, or the Massachusetts Appeals Court.
The maximum rises from 15% to 20% once liability has been accepted or established because the attorney may have performed additional work to prove the employee’s right to benefits. In either situation, the attorney fee is generally deducted from the lump-sum settlement rather than added to the amount paid by the insurer.
Examples of Massachusetts Workers’ Comp Settlement Fees
The following examples show the maximum fee that could be deducted from several hypothetical settlements:
| Settlement | Maximum 15% fee | Maximum 20% fee |
| $25,000 | $3,750 | $5,000 |
| $50,000 | $7,500 | $10,000 |
| $100,000 | $15,000 | $20,000 |
For example, if an employee receives a $50,000 settlement before liability is accepted or established, the attorney fee cannot exceed $7,500. If liability was already accepted or established, the maximum fee would be $10,000.
These are simplified examples. The employee’s final proceeds may also depend on separately handled case expenses and the specific terms approved as part of the settlement. The percentages are maximums under state law rather than a guarantee that every lawyer will charge the full amount.
Attorney Fees During a Disputed Workers’ Comp Claim
A workers’ comp lawyer’s fee doesn’t always come from the employee’s settlement. When an insurer contests a claim, Massachusetts law may require the insurer to pay the employee’s attorney a statutory fee plus necessary expenses if certain events or favorable results occur.
A statutory fee may apply when:
- The insurer initially contests the claim but agrees to pay before a conference.
- An administrative judge orders the insurer to pay benefits following a conference.
- The employee prevails at a hearing or the insurer accepts the employee’s claim or withdraws its complaint within 5 days of the scheduled hearing.
- The insurer appeals an administrative judge’s decision and the employee prevails before the Reviewing Board.
The exact fee depends on the stage reached and the result obtained. Some statutory fees may also be increased or decreased based on the complexity of the dispute or the work performed by the attorney.
These dollar amounts are adjusted periodically based on changes to Massachusetts workers’ compensation benefits. The Massachusetts Department of Industrial Accidents’ attorney-fee schedule provides the current amounts for each stage.
What Happens If the Employee Files an Appeal?
Who files the appeal affects who may be responsible for the attorney fee. If the insurer appeals an administrative judge’s decision and the employee prevails before the Reviewing Board, the insurer must generally pay the employee’s attorney a statutory fee and necessary expenses.
If the employee files the appeal and prevails, the employee may be responsible for a reasonable attorney fee. The employee and attorney may agree on the amount, but the fee must be approved by the Reviewing Board before the attorney can charge it.
Employees who want to learn more about challenging an unfavorable decision can read our guide to appealing a denied Massachusetts workers’ comp claim.
Can Attorney Fees Be Deducted From Workers’ Comp Benefits?
In some disputed claims, a statutory attorney fee becomes due when the employee receives a cash award through a voluntary payment, order, or decision. Massachusetts law allows the insurer to deduct the amount owed to the employee’s attorney from benefits payable during the first month following that result.
However, the deduction can’t reduce the employee’s payment for that month below 78% of what the employee would have received if no attorney fee were due. This restriction helps limit how much of the employee’s initial benefits can be used to satisfy the fee.
This is different from a settlement-based fee. The first-month rule applies to certain statutory fees connected with a cash award, while the 15% or 20% fee applies when the employee receives a lump-sum settlement.
Are Case Expenses Included in a Workers’ Comp Lawyer’s Fee?
Attorney fees and case expenses aren’t the same. Attorney fees compensate the lawyer for providing legal services. Case expenses are the costs of gathering evidence, developing the claim, and presenting it to the insurer or the Massachusetts Department of Industrial Accidents.
Depending on the needs of the claim, expenses may include:
- Obtaining medical records
- Requesting medical reports or physician testimony
- Ordering deposition transcripts
- Hiring medical or vocational experts
- Retrieving, copying, or filing records
Massachusetts law may require an insurer to pay necessary expenses along with statutory attorney fees in certain disputed claims. In other situations, expenses may be deducted separately from the employee’s settlement or compensation.
The written fee agreement should explain whether the law firm advances these expenses, when the employee must repay them, and whether they are deducted separately from any attorney fee. It should also state whether the employee could owe case expenses if the lawyer doesn’t recover compensation. Employees should ask for clarification about these terms before signing the agreement so they know which potential costs are—and aren’t—covered by the attorney fee.
How Much Would You Receive After Attorney Fees?
To estimate what you may receive from a lump-sum workers’ comp settlement, subtract the attorney fee from the total settlement amount. The applicable maximum depends on whether the insurer accepted liability or liability was established through a qualifying decision.
- Before liability is accepted or established: Settlement amount − up to 15%
- After liability is accepted or established: Settlement amount − up to 20%
For example:
- 15% fee: From a $50,000 settlement, a maximum attorney fee of $7,500 would leave $42,500 before any other approved deductions.
- 20% fee: From a $50,000 settlement, a maximum attorney fee of $10,000 would leave $40,000 before any other approved deductions.
The final amount the employee receives may also reflect case expenses and other deductions approved as part of the settlement. Before the employee signs the agreement, the lawyer should provide a written breakdown showing the total settlement, attorney fee, expenses, and estimated net payment.
Is Hiring a Massachusetts Workers’ Comp Lawyer Worth the Cost?
Hiring a workers’ comp lawyer is likely worth the cost when the insurer disputes the claim, benefits are delayed or stopped, or the employee is considering a lump-sum settlement. Because Massachusetts regulates attorney fees, injured workers can obtain representation without paying an hourly rate or a large upfront retainer.
An attorney may help an injured worker:
- Identify the benefits or settlement terms in dispute
- Gather the records needed to support the claim
- Address delayed, reduced, or denied payments
- Evaluate the terms of a proposed lump-sum settlement
- Explain attorney fees, case expenses, and other deductions before an agreement is finalized
The value of representation depends on the facts of the claim and the assistance the employee needs. A straightforward claim in which the insurer pays all benefits may require less legal involvement than a disputed claim or proposed settlement with long-term financial consequences.
Massachusetts regulates workers’ compensation attorney fees to help preserve injured workers’ access to representation while limiting what lawyers may charge. Employees who are unsure whether their circumstances call for legal help can learn more about when to get a lawyer for a work injury.
Questions to Ask About a Workers’ Comp Lawyer’s Fees
Before hiring a Massachusetts workers’ comp lawyer, ask for a clear explanation of when you may be charged and how each potential cost will be handled. The answers should appear in the written fee agreement. Some questions you may want to ask your lawyer upfront include:
- Will I pay an upfront retainer or hourly fee?
- Under what circumstances will the insurer pay the attorney fee?
- When could a fee be deducted from my settlement or benefits?
- Will the fee be limited to 15% or 20% if my case settles?
- Are case expenses separate from the attorney fee?
- Does the firm advance case expenses?
- When would I have to repay advanced expenses?
- Could I owe expenses if my claim is unsuccessful?
- Will I receive a written breakdown of the attorney fee, case expenses, and estimated net payment before accepting a settlement?
FAQs: Massachusetts Workers’ Comp Lawyer Costs
Massachusetts workers’ comp lawyers generally don’t charge injured employees by the hour. Instead, payment may come through a statutory fee paid by the insurer or a percentage deducted from a lump-sum settlement. The lawyer should explain the applicable arrangement in a written fee agreement before representation begins.
An injured employee doesn’t pay an upfront retainer to hire a Massachusetts workers’ comp lawyer from Jim Glaser Law. We also provide a free initial consultation. Attorney fees are typically paid later through a qualifying statutory fee or as a percentage of a settlement.
The insurance company may be required to pay a statutory attorney fee when it contests a claim and the employee obtains a qualifying payment, order, or decision. If the claim ends in a lump-sum settlement, the attorney fee generally comes from the settlement instead. Who pays depends on how the claim is resolved.
Massachusetts law limits the attorney fee to 15% when a settlement occurs before the insurer accepts liability or a qualifying decision establishes liability. The limit is 20% when the settlement occurs after liability has been accepted or established. These limits apply to the attorney fee paid from a workers’ comp settlement.
Not usually, but a limited deduction may apply when a statutory attorney fee becomes due following a cash award. The insurer may deduct the fee from benefits payable during the first month, but the employee must generally receive at least 78% of what otherwise would have been paid that month.
Attorney fees are generally connected to statutory awards, cash benefits, or lump-sum settlements rather than payments for approved medical treatment. Workers’ compensation medical benefits typically pay healthcare providers for reasonable and necessary care related to the work injury. Your lawyer can explain which portion of a particular recovery may be subject to a fee.
A settlement-based attorney fee ordinarily requires a settlement. However, responsibility for case expenses may be different from responsibility for attorney fees. The answer depends on the written fee agreement, the claim’s procedural history, and the firm’s expense policy. Confirm whether any costs could be owed without a recovery before hiring a lawyer.
The tax treatment of workers’ comp attorney fees depends on the employee’s individual circumstances and current tax law. An injured worker should consult a qualified tax professional for advice about whether any attorney fee or case expense may be deductible.
Discuss the Cost of Your Workers’ Comp Case With Jim Glaser Law
Before hiring a lawyer, you deserve clear answers about what representation may cost. Jimmy Knows!® that this means explaining the potential attorney fee, who may be responsible for paying it, how the 15% and 20% settlement limits work, and whether separate case expenses could apply.
Jim Glaser Law can review the circumstances of your Massachusetts workers’ comp claim and explain the available options. Request a free case review to discuss your claim and its potential costs without any obligation or promise of a particular result.
