How does a workers’ compensation lawyer get paid if the injured worker is totally disabled in New Jersey?

Most workers’ compensation lawyers take cases on a contingency basis. The amount of the lawyers’ fee is set by the Court when the award is entered but cannot exceed 20 percent of the award, meaning that an injured worker will not need to pay for any up-front costs and will only pay for the lawyer’s services if they obtain workers’ compensation benefits and a settlement award on their behalf.
 
If an injured worker is totally disabled in a workplace accident or due to a work-related illness, they will either receive Temporary Total Disability (TTD) benefits or Permanent Total Disability (PTD) benefits.
 
Temporary Total Disability Benefits
 
Workers who miss more than seven days of work due to their illness or injury can receive Temporary Total Disability (TTD) benefits. TTD benefits are 70 percent of the worker’s average weekly wage, subject to a maximum of 75 percent of the Statewide Average Weekly Wage (which was $1,259.82 in 2020). TTD benefits typically end once the worker goes back to work or reaches their Maximum Medical Improvement (MMI). MMI is a term referring to the point at which an injured worker will no longer benefit from additional treatment. Once workers exhaust their TTD benefits by reaching their MMI, they may be eligible for Permanent Partial Disability (PPD) benefits or Permanent Total Disability (PTD) benefits.
 
Permanent Total Disability Benefits
 
If workers cannot return to work due to their injuries or disability, they can obtain Permanent Total Disability (PTD) benefits. PTD benefits are 70 percent of the worker’s average weekly wage, subject to a maximum of 75 percent of the Statewide Average Weekly Wage. As of 2021, the maximum amount of weekly PTD benefits is $969. PTD benefits are initially approved for 450 weeks; however, if the worker can show they are still unable to work at the end of the 450 weeks, they may continue to receive benefits.
 
Many workers’ comp cases are settled for a lump-sum amount rather than the insurance company providing ongoing benefits. In this case, a lawyer will receive a portion of the settlement amount. Generally, state law caps the percentage of the attorneys’ fee for a workers’ compensation case to 20 percent of the benefits recovered. In some cases, the employer (or their insurance company) is responsible for 60 percent of the lawyer’s fees, and the injured worker is responsible for 40 percent of the fee. For example, if an injured worker received $10,000 in workers’ comp benefits, the lawyer would receive $2,000 in fees. Of those, the insurance company would pay $1,200, and the worker would pay $800 out of their settlement proceeds. Of course, if the case did not end in the worker obtaining workers’ comp benefits, the lawyer would get nothing.
 
Finally, most workers’ compensation lawyers advance all claim-related costs, so their clients do not need to worry about the cost of bringing a claim. If a worker gets approved for benefits, the judge can allocate these costs between the injured worker and the insurance company. This means that an injured worker may not need to pay for all claims-related costs, even if they successfully obtain benefits.
 
If you have been injured in a New Jersey workplace accident, reach out to the Todd J. Leonard Law Firm for immediate assistance. We offer free consultations to accident victims and accept workers’ comp cases on a contingency basis, meaning there is never a fee unless we can help you obtain benefits and a settlement award on your behalf. You can reach us at 973-920-7900 or through our online form.

Other Workers’ Compensation FAQs:

• Am I Allowed to Choose My Doctors For My Workplace Injury in New Jersey?
• Am I Eligible For Workers’ Compensation If I Am Hurt While Working From Home in New Jersey?
• Are Longshore Workers Eligible For Workers’ Compensation in New Jersey?
• Are Minors Entitled to Workers’ Compensation Benefits?
• Are Minors Injured in a Work-Related Accident Eligible to Receive Workers’ Compensation Benefits in New Jersey?
• Are Workers’ Compensation Benefits Taxable?
• Can A Workers’ Compensation Lawyer Help Me Obtain Benefits and A Settlement Award?
• Can an Employer Fire an Employee for Filing a Workers’ Compensation Claim In New Jersey?
• Can CNAs or RNs Attacked by Patients Receive Workers’ Comp Benefits For Their Injuries?
• Can I Choose My Doctor For My Workers’ Compensation Claim in New Jersey?
• Can I File a Third-Party Lawsuit For My New Jersey Workplace Injury?
• Can I Get Workers’ Compensation When A Coworker Assaults Me?
• Can I Receive Workers’ Compensation For A Gradual, Repetitive Use Injury?
• Can I Reopen My Workers’ Compensation Case?
• Do I Need A Doctor’s Approval to Return to Work?
• How Does a Workers’ Compensation Lawyer Get Paid If the Injured Worker Is Totally Disabled in New Jersey?
• How Does A Workers’ Compensation Lawyer Get Paid?
• How Much Do Workers’ Compensation Lawyers charge in New Jersey?
• How Much Does a Lawyer Make Off of a Workers’ Compensation Claim?
• How Much Does a Workers’ Compensation Lawyer Charge in New Jersey?
• I Was Terminated While Out of Work Due to an On-the Job Injury; What Are My Rights?
• If My Spouse or Parent Dies Due to a Work-Related Injury or Illness in New Jersey, Am I Entitled to Any Death Benefits?
• Is My Injury Considered A Permanent Partial Disability?
• Since I Cannot Perform the Job I Did Before the Injury, Can I Return to Work in a Different Capacity, and How Would That Impact Future Compensation?
• The Workers’ Compensation Doctor Has Released Me For Light Duty Work, But My Employer Told Ne There Is No Light Duty Work Available. What Should I Do?
• What Do I Do If I Get into a New Jersey Car Accident While Working?
• What Does A Workers’ Compensation Lawyer Do For You?
• What Does A Workers’ Compensation Lawyer Do?
• What Does A Workers’ Compensation Lawyer Need to Know?
• What Does AWW Mean Under Workers’ Comp? (Average Weekly Wage)
• What Does FCE Mean Under Workers’ Comp? (Functional Capacity Evaluation)
• What Does IME Mean in Workers’ Comp? (Independent Medical Examination)
• What Does MMI Mean in Workers’ Comp? (Maximum Medical Improvement)
• What Does PPD Mean in Workers’ Comp? (Permanent Partial Disability)
• What Does TTD Mean in Workers’ Comp? (Temporary Total Disability)
• What Happens When Using A Lawyer For A Workers’ Compensation Claim?
• What Happens When You Get A Workers’ Compensation Lawyer?
• What Is A Workers’ Compensation Lawyer?
• What Kind of Information Does A Workers’ Compensation Lawyer Need From You?
• What Should I Do If My Employer Refuses to Open Up a Workers’ Compensation Claim?
• What To Do If Your Employer Will Not Report Your New Jersey Accident to the Workers’ Compensation Carrier?
• What to Expect in Your Free Consultation with a Workers’ Compensation Lawyer?
• What Type of Documents Do I Need to Sign to Allow My Workers’ Compensation Lawyer to Accept My Settlement?
• What Will A New Jersey Workers’ Compensation Attorney Do For Me?
• What Workers’ Comp Benefits Can I Receive If I’m Unable to Work or Return to Work?
• When Do I Need A New Jersey Workers’ Compensation Lawyer?
• When Do Workers’ Compensation Payments Stop?
• When To Get A Lawyer For TBI Workers’ Compensation?
• When To Get A Workers’ Compensation Lawyer?
• While I Was Out of Work as a Result of a Work-Related Injury My Employer Terminated Me. Is This Legal?
• Why Do I Need a Lawyer to File a Workers’ Compensation Claim?
• Why Do I Need A Lawyer to File For New Jersey Workers’ Compensation?
• Why Should I Have A Workers’ Compensation Lawyer?