Workers' Compensation: NJ Raises Workers' Comp Attorney Fee Cap to 25%

Saturday, August 24, 2024

NJ Raises Workers' Comp Attorney Fee Cap to 25%

On August 22, 2024, Acting Governor Nicholas Scutari of New Jersey signed legislation to increase the attorney fee cap in workers' compensation cases from 20% to 25%. This change amends the existing statute R.S.34:15-64, which had remained unchanged since 1927.

The new law, S2822/A3986, acknowledges the evolving complexity of workers' compensation cases and the additional responsibilities attorneys now face. Modern workers' compensation attorneys must handle legal and courtroom duties, acquire specialized knowledge in various fields, including medicine, and gather demonstrative evidence to support their clients' claims.

Acting Governor Scutari emphasized the state's commitment to protecting workers and ensuring fair wages. He stated that this adjustment would ensure fair compensation for attorneys while providing workers with accessible, quality legal representation.

The bill's primary sponsors, Senator Joseph Lagana and Assemblymen Anthony Verrelli and Robert Karabinchak, highlighted the importance of this change. They noted that the slight increase in the contingency fee cap would allow for more client service flexibility and better, more comprehensive representation for injured workers.

This legislative update aims to strike a balance between fair compensation for attorneys and the financial interests of workers dealing with illness or injury. By raising the cap by 5%, the law recognizes the increased workload of contingency attorneys without overly burdening workers with legal expenses.

The change reflects New Jersey's ongoing efforts to adapt its workers' compensation system to modern realities, ensuring that injured employees have access to skilled legal representation when they need it.

Recommended Citation: Gelman, Jon L., NJ Raises Workers' Comp Attorney Fee Cap to 25%, www.gelmans.com (08/24/2024)

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*Jon L. Gelman of Wayne, NJ, is the author of NJ Workers’ Compensation Law (West-Thomson-Reuters) and co-author of the national treatise Modern Workers’ Compensation Law (West-Thomson-Reuters). For over five decades, the Law Offices of Jon Gelman 1.973.696.7900
jon@gelmans.com has represented injured workers and their families who have suffered occupational illnesses and diseases.