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2025 Regular Session Introduced by Gary Byrne and 7 co-sponsors

Senate Bill 287 raises maximum attorney fees for workers' compensation cases, benefiting injured workers and their lawyers while impacting employers and insurance costs.

Signed by the Governor

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Purpose and Intent

Senate Bill 287 (SB 287) aims to amend the existing provisions regarding attorney fees related to controverted medical expenses, appeals, and changes of physicians under Arkansas's Workers' Compensation Law. The bill seeks to update the maximum allowable attorney fees in these contexts, reflecting changes in the legal landscape since the implementation of Initiated Measure 1948, No. 4.

Key Provisions

Modification of Attorney Fees:

The bill proposes to adjust the attorney fees for services rendered in connection with controverted medical benefits. The current maximum fee is set at $3,000, which is proposed to be increased to $5,000 under Amendment S2.
The attorney's fees for legal services regarding indemnity benefits remain at 25% of the compensation awarded to the injured employee or their dependents.

Controversy and Appeals:

The bill outlines that if a claim is controverted, the Workers' Compensation Commission will direct that fees for legal services be paid from the compensation awarded, with specific provisions for how these fees are split between the employer and the employee.
Additional fees are specified for appeals, with a maximum of $2,500 for appeals to the full commission and $5,000 for appeals to higher courts.

Change of Physician Fees:

The bill sets the fee for legal services related to a change of physician at $1,000, up from the previous amount of $200.

Affected Parties

Injured Employees and Dependents: The bill directly impacts injured workers and their families by potentially increasing the amount they can claim for attorney fees in workers' compensation cases.

Employers and Insurance Carriers: Employers and their insurance carriers will also be affected, as they will be responsible for covering these increased attorney fees in cases of controverted claims.

Legal Practitioners: Attorneys representing injured workers will benefit from the increased fee structure, allowing them to charge more for their services.

Procedural Aspects and Timeline

Introduced: February 24, 2025

Current Status: The bill has been carried over to the 2024 Regular Session and is currently under consideration for further amendments.

Recent Actions:

On March 17, 2025, Amendment S2 was adopted, increasing the maximum attorney fee for controverted medical benefits.
The bill has undergone multiple readings and amendments, with discussions ongoing in the Public Health, Welfare, and Labor Committee.

Conclusion

Senate Bill 287 represents a significant update to the attorney fee structure within Arkansas's Workers' Compensation Law. By increasing the maximum allowable fees for attorney services, the bill aims to ensure fair compensation for legal representation in workers' compensation cases, thereby impacting injured workers, employers, and legal practitioners alike.

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