New Jersey Raises Fee Cap for Workers’ Compensation Attorneys to 25%

New Jersey raised the fee cap for attorneys handling workers’ compensation cases from 20 percent to 25 percent of settlements.

Lead sponsors of S2822/A3986 were Sen. Joseph Lagana and Reps. Anthony Verrelli and Robert Karabinchak. The measure passed the Assembly 54-20 and the Senate, 27-9.

Supporters of the increase say it recognizes the additional workload of emergency lawyers in New Jersey and is necessary to ensure that injured workers get quality representation.

“The hours and work of modern workers’ compensation attorneys have become increasingly complex, requiring these attorneys, in addition to their legal and regular trial duties, to acquire specialized knowledge in any number of new areas, including in the medical field. domain and also be versed in gathering demonstrative evidence to prove their case to clients,” said Lagana. “This legislation that slightly raises the cap on attorneys’ contingency fees in these cases will allow more flexibility in serving their clients and allow for better and more comprehensive representation.”

The New Jersey Business and Industry Association (NJBIA) opposed the increase, which it said would increase costs for employers and reduce awards for injured workers. The business group also said there is no evidence that an increase is needed to attract competent counsel to workers’ compensation cases.

The NJBIA noted that employers typically end up covering 60 percent of an attorney’s fees, while injured workers pay the other 40 percent of their final settlement. NJBIA Vice President of Government Affairs Elissa Frank also told lawmakers that settlement awards, and thus attorneys’ fees, have steadily increased each year based on changes in the state’s average weekly wage, which has increased by more than 28% over the last decade, thus “providing a direct increase in the fees paid to lawyers based on these amounts.

“In the absence of evidence demonstrating that awarding fees is necessary to attract competent counsel to workers’ compensation cases, the NJBIA does not believe there is a need to arbitrarily increase attorneys’ fee awards to the detriment of employers and injured workers,” Frank said.

Senate President Nicholas Scutari, acting as acting governor while Gov. Phil Murphy was away at the Democratic National Convention in Chicago, signed the tax hike legislation into law on August 22. The new law entered into force upon signing.

Scutari is himself a personal injury attorney whose clients include injured workers.

“Today’s legislation makes a significant adjustment to the emergency attorney fee cap, ensuring fair compensation for attorneys and providing workers with the affordable, quality legal representation they deserve,” Scutari said in a statement announcing the signing.

Scutari also signed legislation (S2470/A3930) that amends various provisions related to service credit, retirement and salaries of certain county prosecutors and judges.

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