HLS 12RS-1116 ORIGINAL Page 1 of 3 CODING: Words in struck through type are deletions from existing law; words underscored are additions. Regular Session, 2012 HOUSE BILL NO. 613 BY REPRESENTATIVE JAMES WORKERS COMPENSATI ON: Provides for approval of attorney fees in workers' compensation claims AN ACT1 To amend and reenact R.S. 23:1141(B) and 1143, relative to attorney fees in workers'2 compensation disputes; to provide for the percentage of attorney fees permitted; to3 provide for approval of attorney fees by a workers' compensation judge; and to4 provide for related matters.5 Be it enacted by the Legislature of Louisiana:6 Section 1. R.S. 23:1141(B) and 1143 are hereby amended and reenacted to read as7 follows: 8 §1141. Attorney fees; privilege on compensation awards9 * * *10 B.(1) The fees of an attorney who renders service for an employee coming11 under pursuant to this Chapter shall not exceed twenty percent of the amount12 recovered. 13 (2) The fees of an attorney representing the employer or insurer shall be14 based upon work reasonably necessary to prosecute or defend claims by or against15 the employer or insurer.16 * * *17 HLS 12RS-1116 ORIGINAL HB NO. 613 Page 2 of 3 CODING: Words in struck through type are deletions from existing law; words underscored are additions. §1143. Excessive fees or solicitation of employment; penalty; withholding attorney1 fees; approval by workers' compensation judge2 A. Whoever exacts or receives a fee or gratuity for any services rendered on3 behalf of a claimant for compensation, employer, or insurer, except in the amount4 determined by the workers' compensation judge, or solicits the business of appearing5 before the office on behalf of a claimant, employer, or insurer or makes it a business6 to solicit employment for an attorney in connection with any claim for compensation7 under pursuant to this Chapter, shall be fined not more than five hundred dollars or8 imprisoned for not more than twelve months, or both.9 B.(1) An attorney may withhold, as proposed attorney fees, a sum not to10 exceed twenty percent of all amounts recovered in his trust account which funds11 shall remain the property of the claimant, pending approval of such fees by the12 workers' compensation judge. An attorney representing an employer or insurer may13 withhold, as proposed attorney fees, all amounts received in a trust account pending14 the approval of such reasonable fees by the workers' compensation judge.15 (2) An application for approval of fees shall be filed by the attorney within16 no later than thirty days after the payment of the final weekly benefit, settlement of17 the claim, or payment of the judgment, whichever occurs later. Otherwise the funds18 shall be returned to the claimant, employer, or insurer. Application for approval of19 a reasonable flat fee rate per case may be submitted for approval by the workers'20 compensation judge by the attorney representing employers or insurers.21 DIGEST The digest printed below was prepared by House Legislative Services. It constitutes no part of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)] James HB No. 613 Abstract: Requires that attorneys representing employers or insurers obtain approval of reasonable attorney fees. Present law provides that attorney fees for an attorney who represents an employe e in a workers' compensation case shall not exceed 20% of the amount recovered, and must be approved by the workers' compensation judge. HLS 12RS-1116 ORIGINAL HB NO. 613 Page 3 of 3 CODING: Words in struck through type are deletions from existing law; words underscored are additions. Proposed law provides that attorney fees for an attorney who represents the employer or insurer in a workers' compensation case shall be based upon work reasonably necessary to prosecute or defend claims. Present law prohibits the act of rendering services on behalf of a claimant, or soliciting business for an attorney, for a fee, in connection to any workers' compensation claim and provides for a fine of not more than $500, or imprisonment for not more than12 months, or both, for doing so. Proposed law prohibits the act of rendering services on behalf of a claimant, employer, or insurer, or soliciting business for an attorney, in connection to a workers' compensation claim, and provides for a fine of not more than $500, or imprisonment for not more than 12 months, or both, for doing so. Present law allows an attorney to withhold a sum not to exceed 20% of all amounts recovered, in his trust account, for attorney fees pending approval of a workers' compensation judge. Proposed law retains present law and further provides that the attorney representing the employer or insurer may hold attorney fees in his trust account pending approval of the workers' compensation judge. Present law provides that an application for approval of fees shall be filed by the attorney within 30 days after the payment of the final weekly benefit, settlement of the claim, or payment of the judgment, whichever occurs first, and in the absence of such application, the funds shall be returned to the claimant. Proposed law provides that no later than 30 days after the payment of funds, the funds shall be returned to the claimant, employer, or insurer. Proposed law allows an attorney who represents employers or insurers to apply for approval from the workers' compensation judge of a reasonable flat rate fee per case. (Amends R.S. 23:1141(B) and 1143)