Understanding Attorney Fees in California Workers' Compensation
Learn how attorney fees work, what you can expect to pay, and how the WCAB protects injured workers from excessive fees.
How Attorney Fees Work
In California workers' compensation cases, attorneys work on a contingency fee basis. This means:
- No upfront costs: You pay nothing out of pocket to hire an attorney
- No fee if you lose: If your case is unsuccessful, you owe nothing
- Fee comes from benefits: The fee is a percentage of the benefits you recover
- WCAB approval required: All fees must be approved by the Workers' Compensation Appeals Board
Typical Fee Ranges
California law and WCAB practice establish the following fee guidelines:
| Case Complexity | Typical Fee Range |
|---|---|
| Standard Cases | 9% - 12% |
| Complex Cases / Appeals | 12% - 15% |
| Highly Complex / Extended Litigation | 15% - 20% |
Note: The official DWC fee disclosure form states fees typically range from 9% to 12%. However, courts have approved higher fees (commonly 15%) for cases requiring significant work, especially in Southern California.
California Labor Code Sections 4903-4906
Labor Code Section 4903 - Liens for Attorney Fees
This section authorizes the WCAB to allow reasonable attorney fees as liens against compensation awards. It specifies that:
- Attorney fees for legal services related to workers' compensation claims may be allowed as liens
- The WCAB determines what constitutes a "reasonable" fee
- No representative who is not an attorney may charge fees (with limited exceptions for pre-1992 claims)
- When multiple liens exist, the WCAB may determine priorities between them
Labor Code Section 4904 - Payment of Liens
Addresses how liens, including attorney fee liens, are paid from compensation awards. Establishes procedures for reimbursement of benefits paid by various entities.
Labor Code Section 4905 - Priority of Liens
Establishes the priority order when multiple liens compete for the same funds from a workers' compensation award.
Labor Code Section 4906 - Reasonable Attorney Fees
This is the key section governing attorney fees. It provides that:
- Reasonableness requirement: No fee agreement is enforceable in excess of a reasonable amount
- WCAB approval mandatory: An attorney cannot demand or accept any fee until the amount has been approved by the WCAB
- Disclosure required: A fee disclosure form must be filed with the WCAB
- 10-day filing deadline: Fee agreements must be submitted within 10 days of execution
WCAB Fee Approval Process
The Workers' Compensation Appeals Board (WCAB) oversees attorney fees to protect injured workers from excessive charges.
How Fees Are Approved
- Fee Agreement Filing: Attorney files a fee disclosure form (DWC Form 3) with the WCAB within 10 days of signing
- Disclosure to Client: Client receives written explanation of how fees will be calculated
- Case Resolution: When the case settles or is decided, attorney requests fee approval
- WCAB Review: A Workers' Compensation Judge reviews the fee request
- Factors Considered: The judge evaluates multiple factors (see below)
- Approval or Modification: The WCAB approves, modifies, or reduces the requested fee
Factors in Determining Reasonable Fees
Under California Code of Regulations, Title 8, Section 10844, the WCAB considers:
- Responsibility assumed: The complexity and risks of the case
- Care exercised: Quality of representation provided
- Time involved: Hours devoted to the case
- Results obtained: The benefits secured for the injured worker
Section 5710 Fees - Paid by Insurance Company
In addition to contingency fees from your benefits, your attorney may be entitled to fees paid directly by the insurance company under Labor Code Section 5710:
- Deposition fees: When your attorney's presence is required at depositions
- Hourly rate: Up to $500 per hour for case preparation and deposition attendance
- Litigation expenses: Medical record subpoenas, deposition transcripts, etc.
Important: These 5710 fees do not reduce your settlement amount - they are paid separately by the insurance company.
Lien Attorney Fees
When medical providers, healthcare liens, or other third parties are reimbursed from your settlement, your attorney may be entitled to fees from their recovery:
Applicant Attorney Fees from Lien Recovery
Under Labor Code Section 4903.1, the WCAB may award a fee to your attorney from a lien claimant's recovery if:
- The lien claimant received notice of all hearings
- The lien claimant did not participate in the proceedings
- There were genuine issues regarding the lien's compensability or allowability
Lien Filing Fees
Lien claimants (such as medical providers) must pay filing fees:
- Initial filing fee: $150 to file a new lien
- Activation fee: $100 for liens filed before January 1, 2013
Your Protections as an Injured Worker
California law provides several protections against excessive attorney fees:
- Fee caps: The WCAB will not approve fees that are unreasonable
- Written disclosure: You must receive a written fee agreement before representation begins
- No payment without approval: Your attorney cannot collect fees until approved by the WCAB
- Right to contest: You can object to a fee you believe is too high
- Independent review: A Workers' Compensation Judge must approve all fees
Questions About Attorney Fees?
Attorney Nathan Howser offers transparent, straightforward fee arrangements. During your free consultation, we will explain exactly how fees work and answer all your questions.
No upfront costs. No fee unless you recover benefits. All fees subject to WCAB approval.