Workers' Compensation — No Win No Fee
Workers' compensation is a no-fault insurance system that provides benefits to employees injured on the job. Attorneys in workers' comp cases work on a contingency basis with fees regulated by state law — typically 15% to 25% of the recovery.
How Does Workers' Compensation Work?
Direct Answer: Workers' compensation is a state-mandated no-fault insurance system. Injured employees receive medical benefits and wage replacement regardless of who caused the injury. Attorney fees are typically 15%–20% and must be approved by the workers' comp board — lower than standard contingency fees.
Workers' compensation is a state-mandated insurance programme that requires employers to carry insurance covering employees who suffer work-related injuries or illnesses. It operates as a no-fault system: the employee receives benefits regardless of who caused the injury. In exchange, the employee gives up the right to sue the employer for negligence (the "exclusive remedy" doctrine).
Types of Benefits
- Medical benefits — coverage for all reasonable and necessary medical treatment
- Temporary total disability (TTD) — wage replacement while unable to work, typically ⅔ of the average weekly wage
- Temporary partial disability (TPD) — benefits when you can work but at reduced capacity
- Permanent partial disability (PPD) — compensation for lasting impairment after maximum medical improvement
- Permanent total disability (PTD) — ongoing benefits when you are permanently unable to work
- Death benefits — payments to surviving dependents, plus funeral expenses
Third-Party Claims
While the exclusive remedy doctrine bars negligence claims against your employer, you may have a third-party claim against other responsible parties. For example, if you were injured by defective equipment, you may sue the manufacturer under product liability. If injured in a vehicle accident while working, you may sue the other driver. These third-party claims are handled on standard contingency fees (33⅓%–40%).
Regulated Attorney Fees
Unlike standard personal injury cases, workers' compensation attorney fees are regulated by state law. Most states cap fees at 15% to 25% of the benefits recovered, and the fee must be approved by the workers' compensation judge or board. This ensures that injured workers retain a larger share of their benefits.