Interest, Costs, and Counsel Fees: PA Workers’ Compensation
Knowing how interest, costs, and counsel fees function in PA workers’ compensation law can seem perplexing. Below, we look into this and break it down.
Interest
First Installment
The employer must pay the first installment of compensation within 21 days of receiving notice of the employee’s disability. If the employer does not timely pay, 10% interest applies to all unpaid benefits from the due date.
Receiving Interest
The injured worker directly receives the interest payment. Statutory interest compensates the claimant for the delay in receiving benefits. Until paid in full, interest continues to accrue.
Voluntary Payments
Employers might pay interest on voluntary payments if not made timely.
Specific Loss Cases
In specific loss cases, interest starts accruing from the date that the employer receives notice of the specific loss.
Medical and Funeral Expenses
Medical expenses may accrue interest from the date the claimant presents the claim. Also, the employee may claim interest on funeral expenses they have paid.
Forfeiting or Waiving Interest
An employee can forfeit interest if they cause unreasonable delays in proceedings. But, waiving interest violates the law.
Costs
Litigation Costs
As the prevailing party in a litigated claim, the employee may receive reasonable costs. These costs may include witnesses, necessary medical examinations, and lost time. To receive these litigation costs, the employee must prevail on a disputed issue before the Workers’ Compensation Judge (WCJ).
Other Costs
The cost of obtaining medical records and stenographer’s costs for reproducing depositions and hearings, also qualify for recovery.
Estimating Costs
The WCJ can estimate and apportion costs at their discretion when separating costs proves challenging.
Counsel Fees
When a worker suffers a work related injury, they often have wage losses and need medical treatment. Paying fees and costs for a lawyer may seem impossible.
Workers’ comp lawyers operate on a contingent fee arrangement. Meaning, they receive payment when the injured worker receives payment.
Assessed Against the Employer
Mandatory Award
When an employee wins their case, the law presumes their entitlement to reasonable legal fees. An employer can dispute this if they can prove a reasonable basis for contesting.
Amount Of Fees
Fees depend on the skill, duration, time, and effort required. However, fees should only reflect the amount attributable to the litigated issue(s).
Reasonable Contest
Determining the reasonableness of a contest depends on if it genuinely resolves a disputed issue or harasses the employee.
Chargeable to Medical Providers
Neves v. WCAB (American Airlines) clarified a 20% fee agreement applies to both medical and disability benefits. In this case, the court stated that attorneys can deduct their fees directly from medical benefits.
The medical provider cannot charge any portion of its bill to the injured worker (balance billing). Even if this bill incurred an attorney’s fee, according to Williams v. City of Philadelphia.
Chargeable to Employees
Approval and Fee Cap
All fees payable to an employee’s counsel must have WCJ approval, laid out in an order. The law limits attorney fees to 20% of the award unless cause exists to exceed this cap.
Chargeable to Third Parties
Non-Workers’ Compensation Benefit Reimbursement
Counsel fees can face deduction from non-workers’ comp reimbursements. This applies when the third party benefits financially from the successful litigation of the workers’ compensation claim.
Attorney Fee Dispute Between Counsel for Employee
Balancing Rights
If a lawyer files a fee agreement before discharge, the WCJ and WCAB can split up the fee between initial and current lawyers. This balances the employee’s duty to pay the legal fee with their right to choose their own legal representation.
Allocation of Fees
An employee has the right to change lawyers. However, that does not negate their liability to their prior lawyer. Gingerich v. WCAB (U.S. Filter).
Conclusion
Knowing the rules of interest, costs, and counsel fees in PA workers’ compensation insurance cases can help injured workers. The more injured workers know, the more likely they will receive the benefits they deserve. Don’t go it alone, talk to a workers’ comp lawyer today.
If you have questions about any of these subjects or your claim in general, let us answer them. Reach out to our offices 24/7 for a free consultation (215) 609-4183. The insurance carrier has a lawyer on their side and so should you. Let us help.
