Contingency Fee Structure

For disability cases, most lawyers work on a contingency fee basis. This means that the lawyer only gets paid if you win your case. If your claim is approved and you receive benefits, the lawyer will receive a percentage of your back pay (the lump sum payment for past-due benefits).

• Common Fee Rate: Typically, the fee charged by a disability lawyer is 25% of your back pay. This amount is set by federal law to prevent lawyers from charging excessive fees.
• Maximum Fee: The maximum fee a lawyer can charge for Social Security Disability cases is capped at $6,000 (whichever is less—25% of your back pay or $6,000). This fee cap applies to the total amount of fees you pay to the lawyer, regardless of how long the case takes.

How Are Back Pay and Benefits Handled?

Back pay refers to the benefits you should have received while your claim was pending. For example, if it takes a year or more to get a decision on your disability claim, you could be entitled to a lump sum payment covering the months you were eligible for benefits but did not receive them.

• Example: If you were awarded $20,000 in back pay and the lawyer’s fee is 25%, the lawyer would receive $5,000, and you would keep $15,000.
• No Back Pay: If your case is approved for benefits but there is no back pay (for instance, if you are awarded benefits without a retroactive payment), your lawyer would not receive a fee, as there is no back pay involved.

Additional Costs That Might Apply

In addition to the contingency fee, there could be some other costs associated with your disability case. These are typically minor and are not paid upfront. Some examples include:

• Medical Record Fees: If you need to obtain copies of medical records for your case, these can sometimes incur costs.
• Administrative Costs: Your lawyer may charge for things like copying documents, postage, or filing fees.
• Expert Witness Fees: In some cases, you may need to bring in medical experts or vocational experts to testify on your behalf. These experts usually charge fees for their time and testimony.

However, these additional costs are often paid out of the back pay once you win your case, and they are generally quite minimal.

Fees for Appealing a Denial

If your claim is denied and you have to appeal, the contingency fee is still 25% of the back pay (with the $6,000 cap). Even if your case moves to the hearing level or further appeals, the same fee structure applies.

It’s important to note that some lawyers may charge a separate fee for the initial consultation or for case preparation if you decide not to proceed with them. However, this is uncommon, and most Social Security disability lawyers offer free consultations to discuss your case.

Are There Any Other Payment Options?

In most cases, disability lawyers do not charge hourly rates or request retainer fees for Social Security disability cases. However, there may be instances where alternative fee arrangements are available. It's important to discuss the fee structure upfront when you first contact a lawyer to avoid surprises later on.