If you’ve become disabled and unable to work, you may be eligible for disability benefits from programs operated by the Social Security Administration, such as Social Security Disability Insurance, or through other government agencies. However, the application process can seem confusing to someone who has never seen these programs’ applications. As a result, you may decide to retain an attorney to help you file a benefits claim. But how much does a disability lawyer cost?
Understanding the Cost of Hiring a Disability Lawyer
When you decide to hire a disability lawyer to help you pursue an application for disability benefits from Social Security or another government program, you may worry about the cost of legal representation at a time when you may already face significant financial difficulties. Fortunately, Social Security regulations govern how much disability lawyers can charge clients. These regulations ensure that disability benefits applicants can access legal representation at a fair and affordable price.
Furthermore, although some disability lawyers may charge an hourly fee for their representation, most attorneys handle disability benefits cases on a contingency basis. In a contingency arrangement, you pay nothing upfront to retain the attorney to represent you during your benefits application proceedings. Instead, the attorney gets paid only if they secure benefits for you. As a result, contingency fees ensure that benefits applicants face no financial risk if their lawyer ultimately cannot get their application approved.
Breaking Down Social Security Disability Legal Fees
Lawyers’ fees for disability claims must follow strict rules about the sources of payment to the attorney and the total amount of money the lawyer can charge their client. Social Security regulations cap the fees that a lawyer can charge their client at the lower of a 25 percent contingency fee or $9,200 (which increases annually based on a cost-of-living adjustment). Furthermore, the lawyer’s fee must come from an applicant’s back pay award on their disability benefits claim. Thus, the lawyer’s fee does not affect future payments.
However, disability lawyers can pursue a fee award above the 25 percent/$9,200 cap under certain circumstances. Although the cap applies in all cases where an applicant gets awarded benefits during or before a hearing in front of an administrative law judge, when an applicant appeals an unfavorable decision to the Appeals Council or the federal courts, their lawyer can petition the Social Security Administration for a fee above the standard cap to reflect the additional work they put into the client’s case. A lawyer and their client can also agree to a provision in the fee agreement that allows the lawyer to petition for a higher fee if they perform an unusually substantial amount of work on the client’s case.
Understanding the Cap on Contingency Fees in SSDI/SSI Cases
Social Security rules prohibit disability lawyers from charging a contingency fee of more than 25 percent or a total fee of $9,200. This cap may seem low compared to other contingency fees you may have heard of. For example, you may have heard of personal injury attorneys charging contingency fees of 33 or 40 percent of the plaintiff’s recovery.
The 25 percent cap on contingency fees for Social Security disability cases ensures that potentially disabled individuals who may already have limited finances can access legal representation to assist them with their disability benefits claim without having to share too much of their back pay award with their attorney. Back pay awards can help disability benefits recipients with debts that may have accumulated while waiting for approval of their claim. Caps on contingency fees ensure that more of the claimant’s back pay benefits go to the claimant to help them afford daily expenses.
What Is “Back Pay” and Its Role in Attorney Fees?
When the Social Security Administration awards disability benefits, it may award back pay for the period between the onset of the applicant’s disability and the approval of their application. Back pay awards recognize that applicants may wait through months or years of administrative proceedings or litigation before they can secure benefits. For Supplemental Security Income applications, the SSA will pay back pay from the date of approval stretch back to the later of the application date or the date of onset of disability. For Social Security Disability Insurance claims, the SSA will award back pay from the approval date stretching back to the application date plus five months or the date the applicant became disabled. Additionally, the SSA caps back pay for SSDI claims at 12 months of pay.
Back pay represents the sole source of funds from which a disability attorney can seek payment to represent a client in a Social Security disability claim. Furthermore, the caps set by the SSA mean that an attorney cannot receive more than the lesser of 25 percent of the total back pay award or $9,200.
Exploring Additional Costs Beyond Attorney’s Fees
Disability benefits claims can involve other expenses beyond an applicant’s legal fees. First, applicants must submit substantial medical documentation to prove their disability, which may involve copying fees from their medical providers to obtain copies of their medical records. Disability attorneys may have travel expenses to attend hearings on behalf of their clients. However, lawyers can petition the SSA for reimbursement of such expenses.
Finally, applicants may need expert testimony to substantiate their disability claims, which will incur hourly fees for the expert to review the record and testify at hearings. However, disability attorneys can petition for Equal Access to Justice Act fees, which can help cover ancillary expenses incurred by an applicant during their disability benefits claim.
Expert Guidance for Filing Disability Applications
When you develop a disability due to an injury or illness that prevents you from working or performing daily tasks, an experienced disability attorney from Ted A Greve & Associates PA can help you pursue your legal options for benefits and assistance that can help you if you cannot work to earn a living or otherwise support yourself. Contact our firm today for a free, no-obligation consultation to learn more about Social Security attorney fees and understand the costs to you to pursue the disability benefits you need and deserve.
