HB5549 100TH GENERAL ASSEMBLY

  
  

 


 
100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB5549

 

Introduced , by Rep. Jaime M. Andrade, Jr.

 

SYNOPSIS AS INTRODUCED:
 
820 ILCS 305/16a  from Ch. 48, par. 138.16a

    Amends the Workers' Compensation Act. Provides that an attorney's claim for compensation for services rendered in connection with the defense of a claim may not exceed 20% of the amount sought by the claimant or 20% of the amount saved for the employer or insurer, whichever is less. Effective immediately.


LRB100 18982 JLS 34234 b

 

 

A BILL FOR

 

HB5549LRB100 18982 JLS 34234 b

1    AN ACT concerning employment.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Workers' Compensation Act is amended by
5changing Section 16a as follows:
 
6    (820 ILCS 305/16a)  (from Ch. 48, par. 138.16a)
7    Sec. 16a. (A) In the establishment or approval of
8attorney's fees in relation to claims brought under this Act,
9the Commission shall be guided by the provisions of this
10Section and by the legislative intent, hereby declared, to
11encourage settlement and prompt administrative handling of
12such claims and thereby reduce expenses to claimants for
13compensation under this Act.
14    (B) With respect to any and all proceedings in connection
15with any initial or original claim under this Act, no claim of
16any attorney for services rendered in connection with the
17securing of compensation for an employee or his dependents,
18whether secured by agreement, order, award or a judgment in any
19court shall exceed 20% of the amount of compensation recovered
20and paid, unless further fees shall be allowed to the attorney
21upon a hearing by the Commission fixing fees, and subject to
22the other provisions of this Section. With respect to any and
23all proceedings on or after the effective date of this

 

 

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1amendatory Act of the 100th General Assembly in connection with
2any initial or original claim under this Act, no claim of any
3attorney for services rendered in connection with the defense
4of a claim for compensation from an employee or his or her
5dependents, whether secured by agreement, order, award, or a
6judgment in any court, shall exceed 20% of the amount sought by
7the claimant or 20% of the amount saved for the employer or
8insurer, whichever is less. However, except as hereinafter
9provided in this Section, in death cases, total disability
10cases and partial disability cases, the amount of an attorney's
11fees shall not exceed 20% of the sum which would be due under
12this Act for 364 weeks of permanent total disability based upon
13the employee's average gross weekly wage prior to the date of
14the accident and subject to the maximum weekly benefits
15provided in this Act unless further fees shall be allowed to
16the attorney upon a hearing by the Commission fixing fees.
17    (C) All attorneys' fees in connection with the initial or
18original claim for compensation shall be fixed pursuant to a
19written contract on forms prescribed by the Commission between
20the attorney and the employee or his dependents, and every
21attorney, whether the disposition of the original claim is by
22agreement, settlement, award, judgment or otherwise, shall
23file his contract with the Chairman of the Commission who shall
24approve the contract only if it is in accordance with all
25provisions of this Section.
26    (D) No attorneys' fees shall be charged with respect to

 

 

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1compensation for undisputed medical expenses.
2    (E) No attorneys' fees shall be charged in connection with
3any temporary total disability compensation unless the payment
4of such compensation in a timely manner or in the proper amount
5is refused, or unless such compensation is terminated by the
6employer and the payment of such compensation is obtained or
7reinstated by the efforts of the attorney, whether by
8agreement, settlement, award or judgment.
9    (F) In the following cases in which there is no dispute
10between the parties as to the liability of the respondent to
11pay compensation in a timely manner or in the proper amount and
12there is no dispute that the accident has resulted in:
13        (1) the death of the employee; or
14        (2) a statutory permanent disability; or
15        (3) the amputation of a finger, toe, or member; or
16        (4) the removal of a testicle; or
17        (5) the enucleation of or 100% loss of vision of an
18    eye;
19the legal fees, if any, for services rendered are to be fixed
20by the Illinois Workers' Compensation Commission at a nominal
21amount, not exceeding $100.
22    (G) In the following cases in which there is no dispute
23between the parties as to the liability of the respondent to
24pay compensation and there is no dispute that the accident has
25resulted in:
26        (1) a fracture of one or more vertebrae; or

 

 

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1        (2) a skull fracture; or
2        (3) a fracture of one or more spinous or transverse
3    processes; or
4        (4) a fracture of one or more facial bones; or
5        (5) the removal of a kidney, spleen or lung;
6the legal fees, if any, for services rendered are to be fixed
7by the Illinois Workers' Compensation Commission at a nominal
8amount, not exceeding $100, provided that the employee is
9awarded the minimum amount for the above injuries as specified
10in Section 8(d)2.
11    (H) With regard to any claim where the amount to be paid
12for compensation does not exceed the written offer made to the
13claimant or claimants by the employer or his agent prior to
14representation by an attorney, no fees shall be paid to any
15such attorney.
16    (I) All attorneys' fees for representation of an employee
17or his dependents shall be only recoverable from compensation
18actually paid to such employee or dependents.
19    (J) Any and all disputes regarding attorneys' fees, whether
20such disputes relate to which one or more attorneys represents
21the claimant or claimants or is entitled to the attorneys'
22fees, or a division of attorneys' fees where the claimant or
23claimants are or have been represented by more than one
24attorney, or any other disputes concerning attorneys' fees or
25contracts for attorneys' fees, shall be heard and determined by
26the Commission after reasonable notice to all interested

 

 

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1parties and attorneys.
2    (K) After reasonable notice and hearing before the
3Commission, any attorney found to be in violation of any
4provision of this Section shall be required to make restitution
5of any excess fees charged plus interest at a reasonable rate
6as determined by the Commission.
7(Source: P.A. 93-721, eff. 1-1-05.)
 
8    Section 99. Effective date. This Act takes effect upon
9becoming law.