NJ Signs Bill Increasing Workers’ Compensation Attorney Fee Cap to 25%
A workers’ comp attorney fee in New Jersey is governed by N.J.S.A. § 34:15-64 of the Workers’ Compensation Act. Since 1927 the cap on attorneys’ fees was 20%. However, on August 22, 2024, while Gov. Phil Murphy and Lt. Gov. Tahesha Way were both in Chicago for the Democratic National Convention, Senate President Nicholas Scutari, as Acting Governor, signed legislation amending Section 64 to increase the cap on attorneys’ fees from 20% to 25% in workers’ compensation matters.
Scutari stated:
“We are committed to protecting New Jersey’s workers and ensuring fair wages… Today’s legislation makes a meaningful adjustment to the contingency attorney fee cap, ensuring fair compensation for attorneys and providing workers with the accessible, quality legal representation they deserve.”
The change went into effect immediately and applies to cases which are still pending.
While determined by the Workers’ Compensation Judge, workers’ comp attorneys typically will receive the capped or maximum amount in attorney fees. This is now 25% of the gross award or settlement.
Since the 1950s it has been customary for the workers’ comp insurance carrier to pay 60% of the attorney fee, while in settlements pursuant to N.J.S.A. § 34:15-20 (Section 20), the employee pays the entire fee. The 25% cap also applies to Section 20s.
A Continued Trend
While the schedule of disabilities (the chart that determines the value of injuries) has always seen annual increases, the Workers’ Compensation Act has seen several amendments since the 2020 amendment to N.J.S.A. 34-15-12 that increased the value of certain hand and foot injuries. Indeed, on July 20, 2023, new law was passed amending Section 64 raising the maximum amount allowed for Claimants’ physicians to be compensated for their opinions from $600 to $1000.
Contact Our Workers’ Compensation Lawyers at the Law Offices of Michael S. Williams for Help With a claim.
If you have been injured on the job and need help with your claim, a Workers’ Compensation lawyer at the Law Offices of Michael S. Williams is here for you. Call 732-351-2800 or contact us online to schedule a free initial consultation. Our offices are located in Tinton Falls and New Brunswick, New Jersey and we serve not only clients in Monmouth and Middlesex County, but throughout the state.
