How Do Attorney's Fees Work in a Worker’s Compensation Case?

Damon Duncan By Damon Duncan, Board-Certified Specialist Updated April 11, 2015 2 min read
Workers' Compensation

The Short Answer

In most workers' compensation cases in North Carolina, attorney's fees are handled on a contingency fee basis — meaning you pay nothing upfront, and your attorney is only paid if you win your case. The fee is typically between 25% and 33% of your total compensation, depending on the complexity of your case. The North Carolina Industrial Commission must approve all settlements and the attorney's fees associated with them, so there's a built-in layer of oversight protecting you. If your case is unsuccessful, you generally owe your attorney nothing for their time.

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Most attorneys’ fees in a workers’ compensation case are based upon a contingency fee arrangement between the attorney and the injured worker. A contingency fee arrangement is when an attorney agrees to provide legal services to the injured person and is usually only paid in the event the injured worker is successful in their case. If the injured worker is unsuccessful and receives no compensation, then the attorney is usually paid no money for their time and effort on the workers’ compensation case.

In North Carolina, the North Carolina Industrial Commission, sometimes called the worker’s compensation board, determines the attorneys’ fees paid to the attorney.  The Commission usually makes this determination based upon the retainer contract between the attorney and the client/injured worker. The Commission must approve all settlements to injured workers and the fees that are paid to the attorney.

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Most attorney-client retainer agreements specify a percentage of the total payment of the claim that is to be paid to the attorney. The percentage paid to the attorney in most workers’ compensation cases is somewhere between 25% and 33%.  This is usually determined by the complexity of the case. To learn more about how we can help you with your workplace injury contact us today.

Key Takeaways

  • Workers' compensation attorneys in NC are almost always paid on contingency — no recovery, no fee.
  • The NC Industrial Commission must approve both your settlement and the attorney's fee before any money changes hands.
  • Attorney fees in these cases typically range from 25% to 33% of the total compensation awarded.
  • The percentage your attorney receives usually depends on how complex your case is — more complicated cases may justify a higher fee.
  • The contingency structure means injured workers can access legal representation without any out-of-pocket cost upfront.

Attorney Insight

The question I hear most often from injured workers is whether they can even afford an attorney — and the contingency structure is the answer most people don't know about. What also surprises people is that the NC Industrial Commission's approval requirement isn't just a formality; it's a real check that prevents attorneys from collecting excessive fees off the top of a settlement. Where I see workers get into trouble is signing retainer agreements without understanding what percentage applies to their specific situation, then feeling blindsided when the fee comes out of a lump-sum offer. Always ask your attorney upfront how the percentage is determined and what expenses, if any, come off the top before the fee is calculated.

Damon Duncan

About the Author

Damon Duncan

Damon Duncan is a Board Certified consumer bankruptcy attorney at Duncan Law, LLP — helping North Carolina families stop collection calls, protect their property, and get a real fresh start through Chapter 7 and Chapter 13 bankruptcies. He is dedicated to guiding clients through the practical realities of financial recovery, including discharging overwhelming medical debt and halting wage garnishments. Duncan Law has served clients across North Carolina since 1996. In addition to the practice of law, Damon leverages his extensive understanding of debt and asset protection to teach Secured Transactions as a law professor at Elon University School of Law.

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