How Does Your Workers Comp Lawyer Get Paid?

How do you get paid?

Experienced Workers Comp lawyer Doug Landau, and team members Niki Muppidi & Sofia Bartalone explain to clients how payments are made by the insurance companies (NOT the Virginia Workers Compensation Commission!) & how they do not have to pay their lawyer until there is an AWARD or settlement.

Doug Landau and the Team at ABRAMS LANDAU get this question a lot because most of the time he feels like people think they need to pay their attorney an hourly fee. That may be true of corporate lawyers, insurance defense lawyers and attorneys in other areas of the law. Frequently lawyers for divorcing spouses, people charged with felonies and small businesses with legal questions, charge hourly AND require a large upfront Retainer payment from which to bill their time.

“That is not the case for us in a Workers Comp case. ” notes lawyer Landau. He responds to them with the following message: “The retainer in our Workers Comp cases is on a contingency basis, meaning if you do not receive any benefits or lose your claim, we do not receive payment (with the exception of any costs our firm incurs for medical records, depositions, expert’s reports, etc.). Our law firm typically fronts the costs. We also let clients know when there is likely to be a charge of more than a few hundred dollars. Clients are not notified every lime someone licks a stamp, sends a fax or pays for a Subpoena, as these small ticket items would just cause anxiety for out of work clients who are simply trying to recover from their workplace injuries. ABRAMS LANDAU is often reimbursed for the outlay of expenses from AWARD Orders that are achieved during the case or at the final settlement of the claim.

Unlike many hourly lawyers, who are often seen as “bleeding their clients dry,” the Team at ABRAMS LANDAU only rarely asks for any money up front (usually to defray costs); does not require a Retainer for fees in workers comp cases; and, usually advances the costs of the case, with the expectation that reimbursement will be made when an AWARD Order is entered or settlement achieved. Doug Landau does not take blood from clients; he donates blood regularly (as he did again this week at the INOVA Dulles blood donation center) when not preparing for the National or World Championships!

For workers’ comp settlements, the Virginia Workers Compensation Commission determines the appropriate attorney’s fees, which can be up to 20% of the gross recovery. In other words, if the settlement is for a gross amount of $130,000.00, the attorney fee could be up to $26,000.00. The Workers Compensation Commission will also put in the final settlement Order the amount of the costs to be reimbursed. If, in our $130,000.00 gross settlement example, there were $1,200.00 in advanced costs, then the claimant would get a NET settlement check for $102,800.00, likely free of state, local & federal taxes! The Workers Comp insurance company will then be ordered to pay the injured client DIRECTLY their NET settlement, and ABRAMS LANDAU will receive payment of the attorney fees and be reimbursed for costs. Money is rarely put in the firm’s trust account, so that step is eliminated and clients get their money sometimes more quickly than happens in a car crash or trip and fall case. 

In some cases where the client is struggling to get by or catch up on bills after a significant on the job injury, Doug Landau will advise the Workers Compensation Commission that he will take his attorney fee award (and costs) at a later date. So, when there is a later AWARD Order or a final settlement, those previously awarded fees or costs may finally get paid. These are akin to an interest-free loan to the client, and over the decades of practice, many injured workers and their families have come to appreciate the ABRAMS LANDAU teams understanding, patience and financial investments in their cases.

If you, or someone you care about, has been injured, and there are questions about the law, expenses and legal costs, please contact us at once. E-mail us at FrontDesk@LandauLawShop.com or call (703)-796-9555