WCRI Study Shows Impact of Attorney Representation on Workers’ Compensation Payments

Lawyer involvement in workers’ compensation claims substantially increases the total workers’ compensation benefits paid to workers, a new study of nearly 1 million claims shows.

A study from the Workers Compensation Research Institute sought to find out how the involvement of attorneys affects the compensation payments workers receive after sustaining work-related injuries. The goal was to show the causal effect of legal representation for workers and to account for hidden factors, such as lawyers being more likely to take on cases with more serious injuries or other issues that may lead to disputes. Hidden factors such as these have been the main obstacle preventing previous causal estimates, according to the study’s authors.

The WCRI study looked at more than 950,000 claims with more than seven days of lost time, finding that the number of attorneys increased by $7,700 to $12,400.

The study found that 34 percent of workers who were absent from work for more than seven days after a workplace accident were represented by an attorney during the claims process. However, in different types of applications, the lawyer involvement rate fluctuated.

Among the different types of compensation payments, claims with TD payments accounted for 61% of the sample size, and of the sample size, only 14% of workers had an attorney, with an average of $6,918 and an average of $2,198 in benefits of indemnity. In contrast, claims with PPD/LS payments accounted for 39% of the sample size, with 64% of workers represented with an attorney awarding them an average of $39,150 and an average of $22,653 in benefits.

There were also large differences between the different types of PPD/LS cases:

• PPD only: 38% of workers were represented by an attorney, with an average severance payment of $22,292.
• PPD & LS: 79% of workers were represented by an attorney, with an average compensation payment of $55,001.
• LS only: 76% of workers were represented by an attorney, with an average compensation payment of $45,583.

Additionally, attorneys were more likely to represent claims when plaintiffs suffered a more serious injury.

• Neurological pain: 61% attorney involvement with an average indemnity benefit of $40,670
• Inflammatory: 43% attorney involvement with an average indemnity benefit of $29,913
• Carpal tunnel: 40% attorney involvement with $21,204 indemnity benefit.
• Spinal sprains (back and neck), strains and non-specific pain: 36% attorney involvement with $15,199 indemnification.

The WCRI study provides insight into the links between higher awards received and attorney involvement, but the authors say more focused research is needed to conclude whether attorney involvement has a direct correlation with higher compensation payouts for claimants.