The standard fee agreement in Pennsylvania workers’ compensation is 20% of the benefits obtained or awarded to an injured worker. PA Courts have found this amount to be reasonable, and it remains the standard charged. Historically, this pertained just to wage loss, or what we call “indemnity” benefits.
This was somewhat changed by a 2020 decision by the Commonwealth Court of Pennsylvania in the case of Neves v. Workers’ Compensation Appeal Board (American Airlines). Here, the Court found that an attorney for the injured worker could obtain 20% of the medical bills, as well as 20% of the wage loss benefits. While some attorneys immediately started using this ability, others, our firm among them, hesitated to do so. We were unsure how that 20% fee would be dealt with by the healthcare provider. More specifically, we were concerned that our client could potentially be liable for the 20% we would be taking as a fee. This, of course, was a risk we would never place on our clients.
However, the Commonwealth Court of Pennsylvania has now clarified that risk in the recent case of Williams v. City of Philadelphia (Workers’ Compensation Appeal Board). In that case, the Workers’ Compensation Judge (WCJ) refused to grant a 20% fee on the medical benefits, despite it being requested by the attorney and agreed upon by the injured worker. While the Workers’ Compensation Appeal Board (WCAB) affirmed, the Commonwealth Court reversed, finding that the 20% fee on the medical benefits should have been granted.