Bill Text: NJ A2887 | 2024-2025 | Regular Session | Introduced
Bill Title: Establishes 21st Century Injured Workers' Access to Justice Act.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced) 2024-01-09 - Introduced, Referred to Assembly Labor Committee [A2887 Detail]
Download: New_Jersey-2024-A2887-Introduced.html
STATE OF NEW JERSEY
221st LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION
Sponsored by:
Assemblyman ANTHONY S. VERRELLI
District 15 (Hunterdon and Mercer)
Co-Sponsored by:
Assemblywomen Quijano and Speight
SYNOPSIS
Establishes 21st Century Injured Workers' Access to Justice Act.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act concerning contingency fees in workers' compensation cases and amending R.S.34:15-64.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. R.S.34:15-64 is amended to read as follows:
34:15-64. a. The commissioner, director and the judges of compensation may make such rules and regulations for the conduct of the hearing not inconsistent with the provisions of this chapter as may, in the commissioner's judgment, be necessary. The official conducting any hearing under this chapter may allow to the party in whose favor judgment is entered, costs of witness fees and a reasonable attorney fee, not exceeding [20%] 25 percent of the judgment; and a reasonable fee not exceeding $400 for any one witness, except that the following fees may be allowed for a medical witness:
(1) (a) A fee of not more than $1,000 paid to an evaluating physician for an opinion regarding the need for medical treatment or for an estimation of permanent disability, if the physician provides the opinion or estimation in a written report; and
(b) An additional fee of not more than $400 paid to the evaluating physician who makes a court appearance to give testimony; or
(2) (a) A fee of not more than $450 paid to a treating physician for the preparation and submission of a report including the entire record of treatment, medical history, opinions regarding diagnosis, prognosis, causal relationships between the treated condition and the claim, the claimant's ability to return to work with or without restrictions, what, if any, restrictions are appropriate, and the anticipated date of return to work, and any recommendations for further treatment; and
(b) (i) An additional fee of not more than $300 per hour, with the total amount not to exceed $2,500, paid to the treating physician who gives testimony concerning causal relationship, ability to work or the need for treatment; or
(ii) An additional fee of not more than $300 per hour, with the total amount not to exceed $1,500, paid to the treating physician who gives a deposition concerning causal relationship, ability to work or the need for treatment.
b. (1) No fee for an evaluating physician pursuant to this section shall be contingent on whether a judgment or award is or is not made in favor of the petitioner.
(2) No evaluating or treating physician shall charge any fee for a report, testimony or deposition in excess of the amount permitted pursuant to the provisions of this section.
(3) A psychologist, nurse practitioner, or licensed clinical social worker who provides psychological treatment may be paid a fee, as permitted in accordance with the provisions of this section, for a report or testimony concerning that provider's course of treatment of the injured worker in that provider's role as a provider of treatment.
c. A fee shall be allowed at the discretion of the judge of compensation when, in the official's judgment, the services of an attorney and medical witnesses are necessary for the proper presentation of the case. In determining a reasonable fee for medical witnesses, the official shall consider (1) the time, personnel, and other cost factors required to conduct the examination; (2) the extent, adequacy and completeness of the medical evaluation; (3) the objective measurement of bodily function and the avoidance of the use of subjective complaints; and (4) the necessity of a court appearance of the medical witness. When, however, at a reasonable time, prior to any hearing compensation has been offered and the amount then due has been tendered in good faith or paid within 26 weeks from the date of the notification to the employer of an accident or an occupational disease or the employee's final active medical treatment or within 26 weeks after the employee's return to work whichever is later or within 26 weeks after employer's notification of the employee's death, the reasonable allowance for an attorney fee shall be based upon the amount of compensation, theretofore offered, tendered in good faith or paid after the establishment of an attorney-client relationship pursuant to a written agreement, and the amount of the judgment or award in excess of the amount of compensation, theretofore offered. When the amount of the judgment is less than $200, an attorney fee may be allowed not in excess of $50.
d. All
counsel fees of claimants' attorneys for services performed in matters before
the Division of Workers' Compensation, whether or not allowed as part of a
judgment, shall be first approved by the judge of compensation before payment.
The basis for the award of a contingency fee, with a maximum of 25 percent
of the petitioner's settlement, order on motion, or judgment shall be the value
of the money judgment awarded to the petitioner, and the judge of workers'
compensation shall not consider among the factors in determining reasonableness
of a fee the number of hours expended by counsel or counsel's hourly rate, the
representation having been secured on the basis of contingency fee. No awarded
counsel fee shall be allocated by a judge of workers' compensation or referee
of formal hearing against the petitioner's recovery for medical treatment or
temporary total disability benefits secured by way of motion or plenary trial.
This section shall not prevent a judge of workers' compensation or referee of
formal hearing from considering hourly rate and hours expended when awarding a
counsel fee pursuant to section 1 of P.L.2008, c.93 (C.34:15-28.2) or section 1
of P.L.1998, c.74
(C.34:15-57.4). Cases resolved pursuant to section 8 of P.L.1979, c.282
(C.34:15-20) shall also carry a contingency fee not exceeding 25 percent,
subject to the discretion of the judge of workers' compensation, with no
consideration to be given to hours expended or hourly rate, and with the award
of fees and costs to be allocated against the petitioner, unless the parties
stipulate otherwise, and the court approves that arrangement.
Whenever a judgment or award is made in favor of a petitioner, the judges of compensation or referees of formal hearings shall direct amounts to be deducted for the petitioner's expenses and to be paid directly to the persons entitled to the same, the remainder to be paid directly to the petitioner.
(cf: P.L.2023, c.114, s.1)
2. This act shall take effect immediately and shall apply to any pending contingency fee determinations by a judge of workers' compensation on or after the date of enactment.
STATEMENT
This bill establishes the 21st Century Injured Workers' Access to Justice Act. This bill revises the workers' compensation law to revise the cap on contingency fees to a prevailing party in workers' compensation matters from 20 percent to 25 percent, and it expands the application of the fee to orders for payment of medical and temporary disability benefits on motion and orders approving settlement of any kind.
The bill provides that no awarded counsel fee will be
allocated by a judge of workers' compensation against the petitioner's recovery
for medical treatment or temporary total disability benefits secured by way of
motion or plenary trial. The bill will not preclude a judge of workers'
compensation from considering an hourly rate and hours expended when awarding a
counsel fee pursuant to section 1 of P.L.2008, c.93 (C.34:15-28.2) or section 1
of P.L.1998, c.74
(C.34:15-57.4). Cases resolved pursuant to section 8 of P.L.1979, c.282
(C.34:15-20) will also carry a contingency fee of not exceeding 25 percent,
subject to the discretion of the judge of workers' compensation.
The bill is intended to address the ruling in the unpublished case of Garzon v. Morris County Golf Club, App. Div. Docket #A-1100-21, concerning the basis for the award of counsel fees in the workers' compensation system.
Attorneys for injured workers are compensated on a contingency fee basis, to encourage the vindication of the rights of injured workers to medical treatment, temporary total disability, permanent disability, and dependency benefits under a beneficent and remedial system. The cost of denying these benefits to injured workers poorly situated to paying hourly counsel fees is to be borne by the employer when appropriate and to the extent appropriate, as determined by a workers' compensation judge.
Since the original contingency cap of 20 percent was passed by the Legislature, attorneys for injured workers have been given additional duties by changes in the statutory and regulatory structures on both State and federal levels. The bill's revision of the contingency fee cap takes into account increased duties of attorneys for injured workers. A prevailing party should receive up to 25 percent as the counsel fee for securing these essential benefits for the injured worker if the court determines the efforts of counsel resulted in the payment of these benefits.
