A recent study from the Workers Compensation Research Institute (WCRI), analyzing nearly 1 million workers' compensation claims, found that attorney involvement significantly increases the total indemnity benefits paid to injured workers. The study aimed to assess the causal effect of legal representation on indemnity payments, considering hidden factors like the severity of injuries and potential disputes that often attract legal representation.
Key findings show that attorney involvement increased indemnity payments by $7,700 to $12,400 on average. Overall, 34% of workers with more than seven days of lost work time had attorney representation, but rates varied across claim types. Temporary disability (TD) claims saw attorney involvement in just 14% of cases, while claims involving permanent partial disability (PPD) and lump-sum (LS) payments had significantly higher representation rates.
The study also revealed that attorney involvement was more prevalent in severe injury cases. For example, 61% of workers with neurological pain had legal representation, receiving an average indemnity benefit of $40,670. Despite these findings, the authors emphasized the need for further research to determine whether attorney involvement directly leads to higher compensation for claimants.