Labor and Employment - Workers' Compensation Claims - Fees for Legal Services
The proposed changes significantly impact the financial interactions between employees seeking legal representation for their workers' compensation claims and the entities responsible for compensating them. By allowing fees to be incurred exclusively in cases with no compensation aside from medical benefits, the bill aims to ease the financial burden on employees needing legal assistance. However, it is important to note that the law includes provisions to prevent any fee approved by the Commission from becoming a lien against the compensation awarded, which indicates a protective measure for workers.
House Bill 501 amends existing Maryland law regarding workers' compensation claims by authorizing the Workers’ Compensation Commission to order that legal fees be payable under certain conditions. Specifically, the bill permits the Commission to order fees for legal services rendered on behalf of a covered employee when the only compensation available is medical benefits. The amount for such legal fees is capped at $2,000 and can be charged to the covered employee, their employer, the employer's insurer, a self-insured employer, or the Uninsured Employers’ Fund.
Notable points of contention surrounding HB 501 include concerns from various stakeholders about its implications on workers' rights and access to legal representation. While proponents argue that the bill will facilitate access to legal services by providing a clearer framework for compensation of fees, critics raise concerns that the cap on legal fees may deter lawyers from representing workers with claims, particularly in complex cases where the potential for recovery may not justify the effort for legal representation. The overall effect on the legal landscape of workers' compensation claims remains to be fully evaluated.