The cost of obtaining a Social Security disability attorney is about to go up, though not for everyone seeking disability benefits.
On November 30, the Social Security Administration will raise its maximum fee cap from $6,000 to $7,200. It is the first time the cap has been raised since 2009.
Social Security disability attorneys are paid on contingency based on a claimant’s backpay. By statute, attorneys who win a disability case are entitled to a maximum of 25 percent of a claimant’s backpay, and as of November 30, the maximum fee will be no more than $7,200.
What this means for each disability claimant is going to depend a lot on their specific situation. Let’s say your attorney obtains a favorable result, and you are awarded $10,000 in backpay. Your attorney will receive $2,500 of that as a fee. That amount won’t change under the new fee cap.
However, let’s say you have a very strong work history, and it takes several years to get a favorable decision, and eventually you’re awarded $60,000 in backpay. A quarter of that amount would far exceed what is allowed by statute. Prior to November 30, 2022, your attorney would receive $6,000 of that amount as backpay, but with a new fee agreement filed after that date, the attorney is then entitled to a $7,200 fee.
A relatively small number of cases will actually be impacted by the higher fee cap, but unfortunately with inflation, it’s been necessary just for firms to keep up with their expenses.
Remember to always consult with your attorney if you have any specific questions about the fee they’ll receive for obtaining your disability benefits.
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