Cost is a common concern for injured workers who need legal help. If an injury has already reduced your income, the idea of paying a lawyer may seem difficult. Minnesota workers’ compensation law addresses this issue by setting rules for attorney fees.
In many cases, the attorney receives a percentage of disputed workers’ compensation benefits recovered for the employee. Minnesota law controls how these fees are calculated and limits the total fee related to the same injury.
How Are Workers’ Compensation Attorney Fees Calculated in Minnesota?
Minnesota has specific rules for workers’ compensation attorney fees. Under Minnesota Statutes § 176.081, attorney fees are generally calculated as a percentage of disputed compensation awarded to the employee, subject to statutory limits.
This system differs from hiring an attorney for many other types of legal matters. An injured worker generally does not pay the lawyer a traditional hourly fee for pursuing disputed monetary benefits.
How Do Contingent Attorney Fees Work?
A contingent fee depends on the compensation the lawyer obtains for the injured worker. Instead of charging the client for each hour of work, the attorney receives a percentage of covered benefits recovered through the claim.
For example, if an attorney obtains $20,000 in disputed compensation and the statutory 20% fee applies, the fee would be $4,000.
Minnesota law does not allow an attorney to simply charge 20% of every workers’ compensation payment an employee receives. The statute states that fees cannot be calculated from an undisputed portion of a compensation award.
What Counts as a Disputed Workers’ Compensation Claim?
A dispute generally exists when the employer or insurer has enough time and information to take a position on the claim and then disagrees with the employee’s request for benefits.
Disputes may involve issues such as:
- Whether an injury is work-related
- Whether wage-loss benefits should be paid
- The amount of benefits owed
- Whether medical treatment is reasonable or necessary
- Whether rehabilitation benefits should be provided
This prevents fees from automatically being taken from benefits that an insurer was already paying without a disagreement.
Is There a Maximum Attorney Fee in Minnesota?
Minnesota law sets clear limits on what attorneys may charge in workers’ compensation cases. For many disputed benefits, the standard fee is 20% of the first $275,000 of compensation awarded, with a cumulative limit of $55,000 for legal services related to the same injury.
The actual cost depends on the benefits in dispute and the outcome of the claim.
Do You Have to Sign a Fee Agreement?
Minnesota requires a written retainer agreement when an employee hires an attorney for a workers’ compensation claim. The agreement must explain the statutory fee provisions and provide a place for the employee’s signature.
The agreement is important because it allows the injured worker to review how attorney fees will be handled before moving forward. Minnesota law also requires the agreement to include a notice explaining the maximum fee allowed by law.
Who Pays the Workers’ Compensation Attorney Fee?
In many cases, contingent attorney fees are paid from disputed compensation recovered for the injured worker. Minnesota law permits part of an award to be withheld for attorney fees when the legal requirements are met.
However, the employee does not always bear every type of attorney fee. Minnesota law has separate rules for certain disputes involving medical and rehabilitation benefits.
In some situations, the employer or insurer may be responsible for attorney fees, but payment rules depend on the type of benefit at issue and how the dispute is resolved.
What About Medical and Rehabilitation Disputes?
Workers’ compensation claims are not limited to wage-loss payments. Disputes can also involve medical care, rehabilitation services, a change of doctor, or a qualified rehabilitation consultant.
Minnesota law contains special fee rules for these matters. For some disputed medical or rehabilitation benefits that do not have a value that can reasonably be calculated, the statute provides for an hourly fee or $500, whichever is less, paid by the employer or insurer.
The exact fee treatment depends on the type of dispute and the benefits obtained.
When Are Workers’ Compensation Attorney Fees Paid?
Attorney fees are not necessarily due as soon as a lawyer begins working on a case. Minnesota law states that attorney fees and other disbursements are not due or paid until the issue that caused the fee or expense has been resolved.
This means an injured worker does not generally receive an hourly bill every time the attorney reviews a record, makes a phone call, or works on the claim.
The fee is tied to the resolution of the workers’ compensation dispute.
Are There Other Costs in a Workers’ Compensation Case?
Attorney fees are not always the only costs involved in a legal claim. A case may also involve expenses needed to gather evidence or prepare a dispute.
Depending on the case, expenses may include:
- Medical records
- Expert opinions
- Depositions
- Copies of records
- Other case-related expenses
Attorney fees and case expenses are different. The retainer agreement should explain how costs are handled and whether the employee could be responsible for any of them.
Can You Ask About Fees Before Hiring an Attorney?
Yes. An injured worker can ask how attorney fees and case costs will work before signing a retainer agreement.
Useful questions may include:
- How will the attorney fee be calculated?
- Which benefits could be subject to a fee?
- How are case expenses handled?
- When would a fee become payable?
- What happens if no disputed benefits are recovered?
Understanding these terms at the beginning can help avoid confusion later.
Contact Robert Wilson & Associates To Schedule a Confidential Consultation With a Minneapolis Workers’ Compensation Attorney
Minnesota law regulates workers’ compensation attorney fees and places limits on what lawyers can charge. In many cases, fees are based on a percentage of disputed benefits recovered rather than hourly billing. The amount owed depends on the circumstances of the claim, the benefits involved, and the outcome of the dispute.
If you have questions about attorney fees or need help with a workers’ compensation claim, contact Robert Wilson & Associates at (612) 334-3444 to schedule a confidential consultation with a Minneapolis workers’ compensation attorney.