When it comes to everyday decisions, cost plays a big role in the decision making process. That being said, we don’t always buy things simply because they are the cheapest option. With every decision we make, we analyze the cost of a product in regards to the true value it provides us. Value is unique to the individual, which means there’s no perfect formula for determining which product is the best choice. For example, a mother of two may decide to spend more money on a vehicle because it has a better safety rating than a single male who is more interested in gas mileage. So while cost allows us to set a certain financial price to an object, it doesn’t compute for the total value the object provides.
We preface this blog with the above paragraph because a number of clients are solely interested in how much an attorney will cost. The simple answer is there’s no simple answer, but we explain why you’ll get a lot of value out of hiring an attorney to fight your workers’ compensation case in this blog.
The Cost Of A Work Comp Attorney
Lawyers in different industries can set their own rates for hourly work, but workers’ compensation law is a little different. Under Minnesota law, workers’ compensation attorneys are limited in their ability to charge their client. At the Margolis Law Office, we work on what’s known as a contingency basis, meaning payment for our services is contingent on us securing you a valid claim. In other words, we only get paid if you get paid.
Working with a work comp firm that operates on a contingency basis is critical, because it’s rare that you truly find professional help whose interests are 100 percent aligned with yours. For example, a realtor gets a commission from selling your house, so in an ideal world they would sell it for the maximum price, but they are also limited in the number of other houses they can sell while working with you. If they can cut the price a little and sell your house in half the time, they are freed up to sell other houses, and theoretically they are able to bring in more money by making other sales, meanwhile your house sold for less than it could because your realtor, whose interests appeared aligned with yours, pushed you to sell for a lower price. The same can be said for any professional who bills hourly. The longer they work on your case, the more time they can bill for, so it’s never easy to find someone with perfectly aligned interests.
This is why it’s so important to hire a worker’s compensation attorney. The more you get paid, the more they get paid, so the better the job they do at presenting your case, the higher chance you earn a bigger settlement and they get a bigger cut.
So How Much Does A Work Comp Lawyer Cost?
Minnesota law states that the maximum legal fee for services in a compensation award are 20 percent of the first $130,000 awarded per injury. This number also includes services obtained for care and treatment of the injury, so it’s not just based on the lump sum you received.
For example, let’s say you injured your back during a work accident. After filing a work comp claim and fighting your case, your attorney secures you a $30,000 lump sum, and the insurance company covered $4,500 worth of expenses while you were receiving medical care. That means your total compensation awarded was $34,500, meaning your work comp attorney would be entitled to $6,900.
20 percent may seem like a lot, but remember, your interests are aligned and it’s unreasonable to think that you will be able to secure the best award without the assistance of an attorney. The insurance company may offer you a $5,000 settlement right away, and while you would be able to keep the whole thing, your attorney may be able to secure you a $20,000 settlement, so even after their $4,000 fee, you’re walking away with $11,000 more simply because you trusted your case to a professional!
Contact a MN Work Comp Lawyer
So at the end of the day, try not to focus on the cost of a workers’ compensation attorney as much as the value you’ll receive. You’ll get someone in your corner working hard to squeeze every penny out of the insurance company. Even after their fees, a work comp lawyer often pays for itself multiple times over, so reach out to Dean Margolis if you’re interested in filing a Minnesota workers’ comp claim today.
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