NJ Signs Bill Increasing Workers’ Compensation Attorney Fee Cap to 25%

New law raises contingency fee cap for workers’ compensation cases, reflecting increased duties of attorneys since 1927.

NEW JERSEY - Acting Governor Nicholas Scutari has signed into law S2822/A3986, a bill that increases the cap on contingency fees for attorneys representing injured workers in workers’ compensation cases from 20 percent to 25 percent. This amendment to the existing statute R.S.34:15-64 marks the first adjustment to the fee cap since its establishment in 1927.

“We are committed to protecting New Jersey’s workers and ensuring fair wages,” said Acting Governor Nicholas Scutari. “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."

Key Points of the Legislation:

• Increased Fee Cap:
  The new law raises the maximum contingency fee that attorneys can charge in workers’ compensation cases from 20 percent to 25 percent. This increase acknowledges the expanded responsibilities and workload that workers’ compensation attorneys have taken on over the decades.
• Balancing Attorney Compensation and Worker Protection:
  The five percent increase is designed to fairly compensate attorneys for the additional duties they are required to perform without imposing excessive financial burdens on workers who are already dealing with illness or injury.

The bill was primarily sponsored by Senator Joseph Lagana and Assemblymen Anthony Verrelli and Robert Karabinchak, who emphasized the importance of updating the fee structure to reflect the realities of modern legal practice in workers’ compensation cases.

“The hours and labor put in by modern-day workers’ compensation attorneys has become increasingly complex, which requires these attorneys, in addition to their normal legal and courtroom duties, to also acquire special knowledge in any number of new areas, including the medical field, and also be versed in the gathering of demonstrative evidence to prove their clients claim,” said Senator Joseph Lagana. “This legislation slightly raising the cap on attorneys’ contingency fees in these cases will allow for more flexibility in the service of their clients and allow for better and more comprehensive representation.”

“Employees deserve attorneys who stand by them and champion their rights during their time of need,” said Assemblyman Anthony Verrelli. “The passage of this law reinforces the value of legal representation for workers, ensuring attorneys who work for injured individuals are fairly compensated for their efforts.”

“Workers who are injured on the job need attorneys who will fight to ensure they receive they are adequately compensated for their pain and suffering,” said Assemblyman Robert Karabinchak. “The law’s revision of the contingency fee cap takes into account statutory changes that have resulted in increased duties of attorneys representing injured workers.”

This legislative change aims to ensure that injured workers continue to receive quality legal representation while recognizing the evolving demands placed on attorneys handling these complex cases.