Labor and Employment - Workers' Compensation Claims - Fees for Legal Services
Impact
If enacted, SB 433 could significantly alter the framework for compensating legal services within workers' compensation claims. Traditionally, legal fees associated with such claims had to be a lien on the compensation awarded. This bill proposes to exempt certain fees from this requirement, potentially facilitating easier access to legal representation for employees whose claims do not result in monetary compensation. By doing so, it intends to enhance the accessibility of legal services for injured workers who might otherwise be deterred by prohibitive costs.
Summary
Senate Bill 433 focuses on the fees associated with legal services for workers' compensation claims in Maryland. The bill authorizes the Workers’ Compensation Commission to order that a fee for legal services—up to a maximum of $2,000—be payable by various parties involved, including the covered employee, employer, insurer, self-insured employer, or the Uninsured Employers’ Fund, provided that no compensation other than a medical benefit is due to the covered employee. This change aims to provide clarity and structure regarding the payment of legal fees in cases where employees are seeking compensation for workplace injuries or claims under workers' compensation laws.
Contention
While the bill provides a mechanism to compensate legal professionals when claims are minimal or only provide medical benefits, there are concerns regarding how this might influence the behavior of employers and insurers. Opponents may argue that altering the fee structure could disincentivize the timely processing of claims, as employers and their insurers may resist additional costs associated with legal services. The potential lack of a comprehensive view of litigation could lead to unequal access to legal representation among workers, which could be a point of contention during discussions.
Final_notes
Overall, Senate Bill 433 seeks to balance the need for legal representation for workers’ compensation claims against the cost structures associated with those claims. By allowing the Commission to dictate fee structures based on specific circumstances, the bill aims to make the process more equitable and manageable for individuals navigating the complexities of workers' compensation laws.
Removes the authority of the office of workers' compensation to adjudicate workers' compensation claims and provides that the district courts have original jurisdiction of workers' compensation claims. (1/1/15)