Bill Text: IL HB5549 | 2017-2018 | 100th General Assembly | Introduced

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Bill Title: Amends the Workers' Compensation Act. Provides that an attorney's claim for compensation for services rendered in connection with the defense of a claim may not exceed 20% of the amount sought by the claimant or 20% of the amount saved for the employer or insurer, whichever is less. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2019-01-08 - Session Sine Die [HB5549 Detail]

Download: Illinois-2017-HB5549-Introduced.html

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100TH GENERAL ASSEMBLY State of Illinois 2017 and 2018 HB5549 Introduced , by Rep. Jaime M. Andrade, Jr. SYNOPSIS AS INTRODUCED:
820 ILCS 305/16a from Ch. 48, par. 138.16a
Amends the Workers' Compensation Act. Provides that an attorney's claim for compensation for services rendered in connection with the defense of a claim may not exceed 20% of the amount sought by the claimant or 20% of the amount saved for the employer or insurer, whichever is less. Effective immediately.
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A BILL FOR
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AN ACT concerning employment.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Workers' Compensation Act is amended by
changing Section 16a as follows:
(820 ILCS 305/16a) (from Ch. 48, par. 138.16a)
Sec. 16a. (A) In the establishment or approval of
attorney's fees in relation to claims brought under this Act,
the Commission shall be guided by the provisions of this
Section and by the legislative intent, hereby declared, to
encourage settlement and prompt administrative handling of
such claims and thereby reduce expenses to claimants for
compensation under this Act.
(B) With respect to any and all proceedings in connection
with any initial or original claim under this Act, no claim of
any attorney for services rendered in connection with the
securing of compensation for an employee or his dependents,
whether secured by agreement, order, award or a judgment in any
court shall exceed 20% of the amount of compensation recovered
and paid, unless further fees shall be allowed to the attorney
upon a hearing by the Commission fixing fees, and subject to
the other provisions of this Section. With respect to any and
all proceedings on or after the effective date of this

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amendatory Act of the 100th General Assembly in connection with
any initial or original claim under this Act, no claim of any
attorney for services rendered in connection with the defense
of a claim for compensation from an employee or his or her
dependents, whether secured by agreement, order, award, or a
judgment in any court, shall exceed 20% of the amount sought by
the claimant or 20% of the amount saved for the employer or
insurer, whichever is less. However, except as hereinafter
provided in this Section, in death cases, total disability
cases and partial disability cases, the amount of an attorney's
fees shall not exceed 20% of the sum which would be due under
this Act for 364 weeks of permanent total disability based upon
the employee's average gross weekly wage prior to the date of
the accident and subject to the maximum weekly benefits
provided in this Act unless further fees shall be allowed to
the attorney upon a hearing by the Commission fixing fees.
(C) All attorneys' fees in connection with the initial or
original claim for compensation shall be fixed pursuant to a
written contract on forms prescribed by the Commission between
the attorney and the employee or his dependents, and every
attorney, whether the disposition of the original claim is by
agreement, settlement, award, judgment or otherwise, shall
file his contract with the Chairman of the Commission who shall
approve the contract only if it is in accordance with all
provisions of this Section.
(D) No attorneys' fees shall be charged with respect to

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compensation for undisputed medical expenses.
(E) No attorneys' fees shall be charged in connection with
any temporary total disability compensation unless the payment
of such compensation in a timely manner or in the proper amount
is refused, or unless such compensation is terminated by the
employer and the payment of such compensation is obtained or
reinstated by the efforts of the attorney, whether by
agreement, settlement, award or judgment.
(F) In the following cases in which there is no dispute
between the parties as to the liability of the respondent to
pay compensation in a timely manner or in the proper amount and
there is no dispute that the accident has resulted in:
(1) the death of the employee; or
(2) a statutory permanent disability; or
(3) the amputation of a finger, toe, or member; or
(4) the removal of a testicle; or
(5) the enucleation of or 100% loss of vision of an
eye;
the legal fees, if any, for services rendered are to be fixed
by the Illinois Workers' Compensation Commission at a nominal
amount, not exceeding $100.
(G) In the following cases in which there is no dispute
between the parties as to the liability of the respondent to
pay compensation and there is no dispute that the accident has
resulted in:
(1) a fracture of one or more vertebrae; or

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(2) a skull fracture; or
(3) a fracture of one or more spinous or transverse
processes; or
(4) a fracture of one or more facial bones; or
(5) the removal of a kidney, spleen or lung;
the legal fees, if any, for services rendered are to be fixed
by the Illinois Workers' Compensation Commission at a nominal
amount, not exceeding $100, provided that the employee is
awarded the minimum amount for the above injuries as specified
in Section 8(d)2.
(H) With regard to any claim where the amount to be paid
for compensation does not exceed the written offer made to the
claimant or claimants by the employer or his agent prior to
representation by an attorney, no fees shall be paid to any
such attorney.
(I) All attorneys' fees for representation of an employee
or his dependents shall be only recoverable from compensation
actually paid to such employee or dependents.
(J) Any and all disputes regarding attorneys' fees, whether
such disputes relate to which one or more attorneys represents
the claimant or claimants or is entitled to the attorneys'
fees, or a division of attorneys' fees where the claimant or
claimants are or have been represented by more than one
attorney, or any other disputes concerning attorneys' fees or
contracts for attorneys' fees, shall be heard and determined by
the Commission after reasonable notice to all interested

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parties and attorneys.
(K) After reasonable notice and hearing before the
Commission, any attorney found to be in violation of any
provision of this Section shall be required to make restitution
of any excess fees charged plus interest at a reasonable rate
as determined by the Commission.
(Source: P.A. 93-721, eff. 1-1-05.)
Section 99. Effective date. This Act takes effect upon
becoming law.