Bill Text: NY A08708 | 2021-2022 | General Assembly | Introduced


Bill Title: Requires written applications for attorney's fees in workers' compensation claims over $1,000; requires a description of the services claimed and the calculation used to determine the fees; amends effective date to take effect January 1, 2023.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Passed) 2022-02-24 - signed chap.27 [A08708 Detail]

Download: New_York-2021-A08708-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          8708

                   IN ASSEMBLY

                                    January 11, 2022
                                       ___________

        Introduced  by M. of A. BRONSON -- read once and referred to the Commit-
          tee on Labor

        AN ACT to amend the workers' compensation law, in relation to claims for
          attorney's fees; and to amend a chapter of the laws of  2021  amending
          the workers' compensation law relating to attorney's fees, as proposed
          in  legislative  bills  numbers S. 946-B and A. 1034-B, in relation to
          the effectiveness thereof

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1. Section 24 of the workers' compensation law, as amended by
     2  a chapter of the laws of 2021 amending  the  workers'  compensation  law
     3  relating  to  attorney's  fees  as proposed in legislative bills numbers
     4  S. 946-B and A. 1034-B, is amended to read as follows:
     5    § 24. Costs and fees. 1. If the court before which any proceedings for
     6  compensation or concerning an award of compensation have  been  brought,
     7  under  this  chapter,  determine  that such proceedings have not been so
     8  brought upon  reasonable  ground,  it  shall  assess  the  cost  of  the
     9  proceedings upon the party who has so brought them.
    10    2.  Claims  of  attorneys  and counselors-at-law for legal services in
    11  connection with any claim arising under this  chapter,  and  claims  for
    12  services  or treatment rendered or supplies furnished pursuant to subdi-
    13  vision (b) of section thirteen of this article, shall not be enforceable
    14  unless approved by the board.   A written  fee  application  on  a  form
    15  prescribed  by  the board shall be filed for all legal fees in excess of
    16  one thousand dollars ($1,000.00.)  In the fee application  the  attorney
    17  shall  set  forth  the calculation used to determine the fee and certify
    18  that the amount is in accordance with the following provisions. The form
    19  prescribed by the board shall not require a description of the  services
    20  rendered  or  time records in conjunction with such written application.
    21  The attorney shall set forth on the  record  the  same  calculation  and
    22  certification  in  all  oral  fee  applications  of one thousand dollars
    23  ($1,000.00) or less. The board shall approve such written and  submitted
    24  fee application in an amount commensurate with the services rendered and
    25  the  amount of compensation awarded, having due regard for the financial

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03815-06-2

        A. 8708                             2

     1  state of the claimant in accordance with each  applicable  provision  of
     2  the following schedule:
     3    (a) When an award is made directing the continuation of weekly compen-
     4  sation  benefits  for  temporary total or partial disability, the attor-
     5  ney's fee shall be one-third of one week's compensation.
     6    (b) When an award is made that increases the  amount  of  compensation
     7  awarded  or  paid for a previous period or periods of temporary total or
     8  temporary partial  disability,  the  attorney's  fee  shall  be  fifteen
     9  percent of the increased compensation.
    10    (c) When an award is made for schedule loss of use or permanent facial
    11  disfigurement pursuant to paragraphs a through t of subdivision three of
    12  section  fifteen  of  this  article, the attorney's fee shall be fifteen
    13  percent of the compensation due in excess of the employer  or  carrier's
    14  previous payments.
    15    (d)  When  an award is made for permanent total disability pursuant to
    16  subdivision one of section fifteen of this article or permanent  partial
    17  disability  pursuant  to  paragraph  w  of  subdivision three of section
    18  fifteen of this article, the  attorney's  fee  shall  be  equivalent  to
    19  fifteen  percent  of  the  compensation due in excess of the employer or
    20  carrier's previous payments, plus a sum equivalent to fifteen  weeks  of
    21  compensation at the rate fixed by the board.
    22    (e)  When  an  award  is  made  for death benefits pursuant to section
    23  sixteen of this article, the  attorney's  fee  shall  be  equivalent  to
    24  fifteen  percent  of  the  compensation due in excess of the employer or
    25  carrier's previous payments, plus a sum equivalent to fifteen  weeks  of
    26  compensation at the rate fixed by the board.
    27    (f) When an award is made pursuant to section thirty-two of this arti-
    28  cle, the attorney's fee shall be fifteen percent of [any] benefits to be
    29  paid  by  the  employer  or carrier under the approved agreement, except
    30  that benefits  allocated  for  future  medical  expenses  shall  not  be
    31  included  in  the  calculation  of the fee. However, if the attorney has
    32  previously been awarded a fee pursuant to this subdivision,  any  un-ac-
    33  crued  balance of any attorney fees under the foregoing paragraphs shall
    34  be waived.
    35    3.  If a prior attorney has been substituted in a manner prescribed by
    36  the board, and has submitted a fee request, the  board  shall  determine
    37  the amount of fees allocated to any prior attorney out of the total fees
    38  awarded.
    39    4. When so approved, such claim or claims shall become a lien upon the
    40  compensation awarded, and upon any moneys ordered paid under an award by
    41  the  board  into  the  special funds provided for in subdivision nine of
    42  section fifteen and section twenty-five-a of this article, and any other
    43  section of this chapter, but shall be paid therefrom only in the  manner
    44  fixed  by  the  board.  Any  other person, firm or corporation who shall
    45  exact or receive fee or gratuity for any services rendered on behalf  of
    46  a  claimant except in an amount determined by the board, shall be guilty
    47  of a misdemeanor. Any person, firm or corporation who shall solicit  the
    48  business  of  appearing before the board on behalf of a claimant, or who
    49  shall make  it  a  business  to  solicit  employment  for  a  lawyer  in
    50  connection  with  any claim for compensation under this chapter shall be
    51  guilty of a misdemeanor. In case an award is affirmed upon an appeal  to
    52  the  appellate division, the same shall be payable with interest thereon
    53  from the date when said award was made by the board except  as  provided
    54  in section twenty-seven of this article.

        A. 8708                             3

     1    §  2. Section 2 of a chapter of the laws of 2021 amending the workers'
     2  compensation law relating to attorney's fees, as proposed in legislative
     3  bills numbers S. 946-B and A. 1034-B, is amended to read as follows:
     4    § 2. This act shall take effect [immediately] January 1, 2023.
     5    §  3.  This act shall take effect immediately; provided, however, that
     6  section one of this act shall take effect on the same date  and  in  the
     7  same  manner  as  a  chapter  of  the laws of 2021 amending the workers'
     8  compensation law relating to attorney's fees, as proposed in legislative
     9  bills numbers S. 946-B and A. 1034-B, takes effect.
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