Key Takeaways
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Effective immediately, workers’ compensation judges in New Jersey can establish petitioner’s attorney fees of up to 25% of the judgment
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This is an increase from the previous 20% maximum allowable fee
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We anticipate most, if not all, judges will adopt the increase to 25% across the board
On August 22, 2024, New Jersey increased the available counsel fee for petitioner’s attorneys from 20% to 25%. The increase was signed into law by Acting Governor Nicholas Scutari. The applicable section of the Statute, N.J.S.A. 34:15-64, now reads: “The official conducting any hearing under this chapter may allow to the party in whose favor judgment is entered, costs of witness fees and a reasonable attorney fee, not exceeding 25 percent of the judgment.” (Emphasis added.) A 5% increase is significant, especially in light of the fact that the overall attorney fee increases each year, as the permanent disability benefit rates increase on January 1 of each year.
While the workers’ compensation judges are still able to exercise discretion in awarding an attorney fee, judges have historically awarded the full 20% attorney fee on settlements, when that was the law. Thus, we anticipate most, if not all, judges will adopt the increase to 25% across the board.
In practice, the standard apportionment for attorney fees under an Order Approving Settlement has been respondent paying 60% of the total attorney fee and petitioner paying 40% of the total attorney fee. Under a Section 20 settlement, the petitioner will still be responsible for the full attorney fee. We do not expect any change in the apportionment of the fees.
Judges draw the authority to award petitioner’s attorney fees on successful Motions for Medical and/or Temporary Disability Benefits from the same section of the statute. Accordingly, judges now have the authority to award an attorney fee of up to 25% on all benefits obtained from a successful motion. Again, this is subject to the judge’s discretion and respondents should always argue that any fee should be commensurate with the principles of reasonableness.
Finally, the legislation is clear: “This act shall take effect immediately and shall apply to all claims pending on or after the date of enactment.” Therefore, any case being settled after August 22, 2024, is subject to the increased 25% fee.
