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Workers’ Comp Contingency Attorney Fee Cap Increases to 25%

Acting Governor Nicholas Scutari yesterday signed S2822/A3986, which raises the attorney fee cap in workers’ compensation cases from 20% to 25%, amending existing statute R.S.34:15-64.

The New Jersey Business and Industry Association opposed the bill because it would raise workers’ compensation cost for employers, including small businesses, and chip away at awards for injured workers.

A press release issued by the Governor’s Office on the bill signing states that attorneys for injured workers are often compensated on a contingency fee basis. The fee cap of 20% did not account for additional duties that workers’ compensation attorneys are required to handle since the cap’s establishment in 1927, the press released stated.

“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.”

The primary sponsors of S2822/A3986 are Senator Joseph Lagana and Assemblymen Anthony Verrelli and Robert Karabinchak.

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