Why do nearly every workers compensation lawyer claim you don’t pay unless we win?
That promise comes from a contingency fee agreement.
The contingency fee is how attorneys can get paid after you’ve suffered a severe injury — even if you don’t have $1 in the bank. With 2.5 million workers injured on the job in 2024 alone, you’re not the only one wondering how they work.
Here’s the truth:
Contingency fees aren’t as complicated as most law firm websites make them sound.
Let’s break it all down…
Here’s what’s inside:
- What Is a Contingency Fee Agreement?
- Why Injury Victims Use Contingency Fees
- How Contingency Fee Percentages Work
- What Costs Come Out of Your Settlement
- Questions to Ask Before Signing
What Is a Contingency Fee Agreement?
A contingency fee agreement is a contract between you and a workplace injury lawyer.
Instead of charging you by the hour or requiring a large retainer, your attorney agrees to receive a percentage of the recovery. If the attorney wins, they get paid. If they lose, they get nothing.
That’s it. Nothing else hiding in the fine print.
That’s why firms such as Pierce Skrabanek’s Houston personal injury attorneys offer free consultations and work on contingency. It eliminates all the financial risk for injured workers that can’t afford to shell out hundreds an hour when they’re sitting at home injured.
Cool, right?
The agreement should be in writing. Each state mandates that you and the attorney sign the agreement prior to work beginning on your case. Never enter into an oral contingency fee agreement.
Why Injury Victims Use Contingency Fees
Last thing you need when injured on the job is another bill.
Medical bills are mounting. Your salary likely just stopped. And insurance companies are already calling you with cheap offers.
Here’s where the contingency model earns its keep…
Contingency fees give you three big advantages:
- No money required upfront — no retainers, deposits or hourly rates.
- Skin in the game — your lawyer only gets paid if you win so their interests are aligned with yours.
- Real representation — you won’t have to face insurance adjusters and defense lawyers on your own.
Here’s an analogy. Hourly attorneys can charge $200-$500+/hr. Many injured workers cannot afford that. A contingency fee eliminates that obstacle.
Also keep in mind that there were 5,070 fatal work injuries in 2024. These families may need legal assistance when they are least able to afford it.
How Contingency Fee Percentages Work
Here’s where things get interesting.
The most common contingency fees range from 33% to 40% of the recovery. The percentage varies depending on how much work your case will require before it settles.
Here’s a typical breakdown:
- Pre-lawsuit settlement — usually around 33% (one-third of the recovery)
- After filing a lawsuit — jumps to about 40%
- Trial or appeal — can climb higher, sometimes 45%
Why the increase?
Easy. The farther along your case progresses, the more work your attorney must perform. Complaints, depositions, expert witnesses, trial preparation – it all takes wayyyyy more time than an hour-long settlement conference.
Let’s look at an example…
Let’s say your case settles for $90,000. You haven’t filed a lawsuit. Your attorney’s contingency fee is 33%. The attorney receives $30,000. You receive $60,000, before expenses.
OK so what if the same case went to trial for a 40% fee? Your attorney receives $36,000. You keep $54,000.
Keep in mind you should have your % written out CLEARLY in your deal. If it’s ambiguous, you have problems.
What Costs Come Out of Your Settlement
This is where a lot of people get confused.
Your lawyer’s contingency fee includes his time and legal services. It does not necessarily include additional costs incurred during your case.
Common case expenses include:
- Court filing fees
- Medical record requests
- Expert witness fees
- Deposition transcripts
- Investigator costs
- Copying and mailing
Some companies will cover these costs upfront and deduct them from your settlement check at closing. Some want you to pay them as they are incurred. Huge difference.
Before you sign anything, ask straight up:
- Who pays these costs?
- Are they deducted before or after the attorney’s fee is calculated?
- What happens to those costs if the case loses?
Most important of all. Often in contracts, you aren’t liable for the other party’s attorney’s fees if you lose — but you could still be liable for costs reimbursement. Make sure you get the response in writing.
Questions to Ask Before Signing
Before signing any contingency fee agreement, run through this quick checklist.
Ask about the fee structure:
- What’s the percentage if the case settles early?
- Does it go up if a lawsuit is filed?
- Is there a cap on how high it can climb?
Ask about the costs:
- Who advances the case expenses?
- Are costs deducted from the gross or net settlement?
- Do you owe expenses if the case loses?
Ask about communication:
- Who will actually handle your file day to day?
- How often will you get updates?
- What’s the timeline for a case like yours?
An excellent workers’ compensation lawyer will respond to all of these questions without hesitation. If they evade the question or pressure you to sign — run away.
Your gut is usually right.
Bringing It All Together
Contingency fee agreements exist for one reason…
To level the playing field for injured workers.
They provide injured workers access to the highest quality legal services as anyone else can get. No fees unless they win. No hourly rates. No financial risk while you recover. It can mean everything when you’re facing mounting medical bills and lost income.
To quickly recap:
- Contingency fees are usually 33% to 40% of the recovery
- You pay nothing unless your lawyer wins
- Case expenses are separate from attorney fees
- Get everything in writing before signing
- Ask questions until you’re 100% clear on the terms
Bonus: Statistics prove time and time again that injured victims who are represented by a lawyer recover more money than those who attempt to pursue their claims independently. That means even after the contingency fee is paid most individuals are better off.
The contingency model has provided millions of injured workers with the ability to obtain compensation they otherwise would not have been able to pursue. However, make sure the agreement you sign is equitable, understood by both parties, and thorough with all “what ifs” before you sign your name.
