In this guide12 sections
Labor Code §4906 is the California statute that controls what a workers’ comp attorney can charge you. No fee is enforceable beyond a reasonable amount, the Workers’ Compensation Appeals Board (WCAB) must approve or set the fee before an attorney can collect it from you, and the attorney must give you a written fee disclosure form at your first consultation.
Section 4906 covers how fees are approved and disclosed. It does not tell you whether to hire a lawyer. For step-by-step help with that decision, see our guide on when to hire a workers’ comp attorney. If you already have a lawyer and want a different one, see how to change your workers’ comp attorney.
- Labor Code §4906 says no workers’ comp fee agreement is enforceable beyond a reasonable amount, and the WCAB decides what is reasonable.
- An attorney or agent can’t demand or accept a fee from you until the WCAB approves or sets it, and fee agreements go to the WCAB within 10 days.
- The WCAB weighs four factors: the responsibility assumed, the care exercised, the time involved and the results obtained.
- At your first consultation the attorney must give you the DWC’s written fee disclosure form (DWC Form 3), which must be filed and sent to the insurer within 15 days.
- In some situations the employer may be ordered to pay your attorney’s fees in addition to your benefits, such as a fee the WCAB allows for a deposition the employer requests (§5710).
What Labor Code §4906 says
According to the california.public.law mirror, §4906 was last amended effective January 1, 2017. Here is a plain-English summary of each subdivision.
| Subdivision | What it says (paraphrased) |
|---|---|
| (a) | A charge, claim or agreement for legal services or disbursements “is not enforceable, valid, or binding in excess of a reasonable amount,” and the WCAB decides what is reasonable. No payment is allowed for services or expenses incurred before the attorney files the disclosure form with the WCAB and sends it to the employer, insurer or claims administrator. |
| (b) | An attorney or agent “shall not demand or accept any fee” from an employee or dependent until the WCAB has approved or set the amount. |
| (c) | Any fee agreement must be submitted to the WCAB for approval within 10 days after it is made. |
| (d) | In setting a reasonable fee, the WCAB considers the responsibility assumed by the attorney, the care exercised, the time involved and the results obtained. |
| (e) | At the initial consultation, the attorney must give you a written disclosure form prescribed by the DWC. Both of you sign it, and it must be filed and sent to the employer or insurer within 15 days. |
| (f) | The form must carry a prominent warning that knowingly making false or fraudulent material statements to get or deny benefits is a felony. |
| (g) | The form must name the district office where your case will be filed and say you may have to attend hearings there at your own expense. You can’t sign until you’ve been told the location and have met or spoken with a State Bar-licensed attorney. |
| (h) | The employee, employer, insurer and their attorneys must each sign a statement under penalty of perjury that they have not violated §139.3 or taken any rebate, commission or other consideration for a referred exam or evaluation. |
| (i) | A new attorney who takes over a case must complete a new disclosure form and the subdivision (h) statement and file them within 15 days. |
Who §4906 covers
Subdivision (b) applies to any “attorney or agent” representing an injured employee, or a dependent in a death case, in a workers’ comp proceeding. Parties may appear at WCAB hearings “by attorney, or by any other agent” (§5700), but under §4903(a) no fee for legal services can be awarded to a representative who is not an attorney, except on certain claims filed before 1992. The statute covers both fees and “disbursements,” meaning the costs a representative pays to move the case forward. The anti-kickback statement in subdivision (h) also binds employers, insurers and defense attorneys.
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The rules, subdivision by subdivision
A reasonable fee, set by the WCAB (subdivisions (a) and (d))
In workers’ comp, you and your lawyer don’t have the final word on the fee. A workers’ compensation judge must approve it. The fee is a percentage of the benefits recovered, and the judge sets it at a reasonable amount using the four factors in §4906(d), which are repeated in the WCAB’s rule on reasonable attorney’s fees (8 CCR §10844). The approved fee is allowed as a lien against your compensation under Labor Code §4903(a), so it is paid out of your award. No fee is paid up front unless the judge has approved it. At Employees First Labor Law, our workers’ comp fee is 15% to 18% of the benefits we recover for you, and we are paid only after a workers’ compensation judge approves the fee.
No fee until it’s approved (subdivisions (b) and (c))
An attorney or agent can’t demand or accept a fee from you until the WCAB has approved or set the amount. Any fee agreement goes to the WCAB within 10 days after it is made.
The disclosure form at your first consultation (subdivisions (e)–(g))
The disclosure form, DWC Form 3, must be furnished “at the initial consultation” (8 CCR §10135). It explains that the WCAB approves the fee using the four fee factors, when the employer may have to pay your fees, what happens if you withdraw from representation, and how to reach an Information and Assistance officer. The attorney signs a declaration under penalty of perjury that they advised you of your rights under §4906(e) and (g)(1). Under subdivision (a), no fee is allowed for work done before the form is filed and sent to the employer or insurer.
No kickbacks for referrals (subdivision (h))
Each party certifies under penalty of perjury that it has not violated §139.3, the self-referral ban, and has not accepted “any rebate, refund, commission, preference, patronage dividend, discount, or other consideration” for a referred examination or evaluation.
Changing attorneys (subdivision (i))
A substituted attorney must complete a new disclosure form and the subdivision (h) statement and file them within 15 days, and can’t be paid under §4903(a) or §5710 for work done before filing. DWC Form 3 adds that if you withdraw from an attorney’s representation, a workers’ compensation judge sets the fair value of that attorney’s work, which is deducted from your award. For the practical steps, see our guide on changing your workers’ comp attorney.
Workers’ comp fees are set by the WCAB, not by contract alone. Our workers’ comp fee is 15% to 18% of what we recover, and a judge must approve it.
Exceptions: when the employer pays attorney fees
Most comp fees come out of the worker’s award. A few statutes shift fees to the employer or insurer, in addition to your benefits:
- Depositions (§5710(b)(4)). If the employer or insurer takes your deposition and you have a California-licensed attorney, the WCAB may allow a reasonable attorney’s fee, which “shall be paid by the employer or his or her insurer.” See our guide to your workers’ comp deposition.
- Declarations of readiness (§4064(c)). If the employer files a declaration of readiness to proceed while you are unrepresented, the employer is liable for attorney’s fees you incur in connection with it, subject to §4906.
- Fights over continuing medical care (§4607). If a party tries to end your award of continuing medical treatment and loses, the WCAB may assess your reasonable attorney’s fees against that party.
- Unreasonable delay after an award (§5814.5). When payment is unreasonably delayed or refused after an award, the WCAB must award reasonable attorney’s fees for enforcing payment, in addition to the §5814 penalty.
Penalties and remedies
Section 4906 works mainly by making unapproved fees unenforceable. A fee agreement is not valid beyond what the WCAB finds reasonable, and an attorney or agent who takes a fee from you before WCAB approval violates subdivision (b). If you have questions about a fee request or the fee approved in your case, raise them with the workers’ compensation judge or a DWC Information and Assistance officer. Fee approval typically happens when the judge approves a settlement or issues an award, a process covered in our guide to workers’ comp hearings and the WCAB.
Deadlines
| Step | Deadline | Source |
|---|---|---|
| Give you the fee disclosure form | At the initial consultation | §4906(e); 8 CCR §10135 |
| File the signed form and send it to the employer or insurer | Within 15 days of signing | §4906(e) |
| Submit a fee agreement to the WCAB | Within 10 days after it is made | §4906(c) |
| New attorney files a new form and statement | Within 15 days | §4906(i) |
| Collect any fee from you | Only after the WCAB approves or sets it | §4906(b) |
Related sections
| Section | What it covers |
|---|---|
| §4903(a) | The approved attorney’s fee is a lien against your compensation. See liens on a comp settlement. |
| §5710 | The WCAB may allow an attorney’s fee, paid by the employer, for a deposition the employer requests |
| §4064(c) | Employer pays fees tied to a declaration of readiness filed while you’re unrepresented |
| §4607 | Fees when a party unsuccessfully tries to end continuing medical care |
| §5814.5 | Fees for enforcing payment after an unreasonable delay |
| §139.3 | Ban on self-referrals, cited in the subdivision (h) statement |
| 8 CCR §§10134, 10135, 10844 | The disclosure form, its required use, and the fee factors judges apply |
How it plays out
💡 Example: Luis, a hypothetical delivery driver, meets a workers’ comp lawyer after a knee injury. At that first meeting the lawyer gives him DWC Form 3, tells him which district office will hear his case, and both sign. The lawyer files the form and sends it to the insurer within 15 days. Luis pays no fee at signing, because §4906(b) bars any fee until the WCAB approves it. Later the insurer takes Luis’s deposition, and any fee the WCAB allows for that deposition is paid by the insurer under §5710, not by Luis. His case ends with a permanent disability award. The judge, not the lawyer, sets the fee: a reasonable percentage of the benefits recovered, based on the §4906(d) factors. That approved fee is deducted from the award before Luis is paid.
What to do
- Read DWC Form 3 before you sign it, and keep a copy.
- Note the district office named on the form. That is where your hearings will be.
- Don’t pay a workers’ comp attorney’s fee up front. The fee is paid from your award, and only after a judge approves it.
- Before you accept a settlement, ask what fee will be requested. Our guide on whether to accept a settlement offer covers the other questions to ask.
- For free help without a lawyer, call a DWC Information and Assistance officer at 1-800-736-7401.
Frequently asked questions
How does §4906 decide what a workers’ comp attorney can charge?
A workers’ compensation judge must approve the fee. It is a percentage of the benefits recovered, set at a reasonable amount under §4906(a) and (d) based on the responsibility assumed, the care exercised, the time involved and the results obtained. The approved fee is deducted from your benefits, and no fee is paid up front unless the judge has approved it. At our firm, the workers’ comp fee is 15% to 18% of what we recover for you, subject to the judge’s approval.
Do I have to pay a workers’ comp attorney before my case ends?
No fee can be demanded or accepted from you until the WCAB has approved or set it (§4906(b)).
Can my employer be ordered to pay my attorney’s fees?
In some situations, yes: a fee the WCAB allows for a deposition the employer requests (§5710), a declaration of readiness filed while you were unrepresented (§4064(c)), a failed attempt to end your continuing medical care (§4607), and enforcing payment after an unreasonable delay (§5814.5).
What does §4906(i) require when a new attorney takes over?
The new attorney must complete a new disclosure form and the subdivision (h) statement and file them within 15 days, and can’t be paid for work done before filing. For the practical side of switching lawyers, see our guide on how to change your workers’ comp attorney.
What is a fee disclosure statement?
It’s DWC Form 3, the form §4906(e) requires at your first consultation. It explains how fees are set and approved, your options, and where your case will be heard.
Sources
- California Labor Code §4906
- California Labor Code §4903
- California Labor Code §4064
- California Labor Code §4607
- California Labor Code §5710
- California Labor Code §5814.5
- DWC Form 3, Fee Disclosure Statement (Rev. 1/17)
- 8 CCR §10134, Attorney Fee Disclosure Statement Form
- 8 CCR §10135, Required Use of Form
- 8 CCR §10844, Reasonable Attorney’s Fee
Workers only. Never employers.
At Employees First Labor Law, we represent California workers only, never employers. Our team has recovered more than $200 million for our clients, and we prepare every case as if it is going to trial. We have offices in Pasadena, Irvine, Long Beach, Pomona, Riverside, Bakersfield and Fresno, and we serve workers throughout California. Meet our team.
If you’re deciding whether to hire a workers’ comp lawyer, or you have questions about a fee in your case, we can explain how Labor Code §4906 and the WCAB’s approval process apply to you. Employees First Labor Law works exclusively for workers and offers free virtual consultations.
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This article provides general information about California law and is not legal advice for any specific situation. Reading it does not create an attorney-client relationship. Past results do not guarantee a similar outcome.
