How is an Attorney Paid For Social Security Disability Claims?

Attorneys who represent Social Security disabilitysubmit it before the date of the first favorable
claimants generally do so under a "contingency feedetermination or decision SSA makes on a claim after
agreement." That is, the client does not pay thethe representative's appointment. If the representative
attorney unless and until the case is resolved anddoes not submit a fee agreement by that date, SSA
Social Security benefits have been awarded. Aassumes the representative either will file a fee petition
representative who wants to charge or collect a feeor waive a fee.
from a claimant for services provided in anyIf the representative submits a fee agreement before
proceeding before the Social Security Administrationthe date SSA makes a favorable decision, SSA will
(SSA) under the Social Security Act (the Act), mustapprove the fee agreement at the time of the
first obtain SSA's authorization. To do so, afavorable decision if the statutory conditions for
representative must use one of two mutually exclusiveapproval are met and no exceptions to the fee
fee authorization processes: the fee agreementagreement process apply. Once SSA approves the
process or the fee petition process. Under the feefee agreement, the fee specified in the agreement is
agreement process, an attorney can collect no morethe maximum fee the representative may charge and
than 25% of of back benefits recovered, or $5,300,collect for all services in the claim.
whichever is less. If the attorney is unsuccessful inA fee petition is a written statement signed by a
obtaining benefits, there is no charge.claimant's representative requesting the fee the
Fee Agreement Process Before SSA decides therepresentative wants to charge and collect for
claim, the representative or the claimant may file a feeservices he or she provided in pursuing the claimant's
agreement. Generally, SSA will approve an agreementbenefit rights in proceedings before the Social Security
(under § 206(a)(2)(A) of the Act) if the otherAdministration (SSA).
statutory conditions are met and no exceptions apply.SSA presumes that the representative will either file a
If SSA approves the fee agreement and no onefee petition or waive his or her fee if the
requests administrative review, the fee specified in therepresentative does not file a fee agreement before
agreement is the maximum fee the representativethe date SSA makes the first favorable determination
may charge and collect.or decision. A representative who elects to use the
Fee Petition Process After the representative'sfee petition process generally files the petition after his
services in the case have ended, he or she mayor her services in the case have ended. Based on this
petition for a fee. SSA reviews the fee petition andpetition, SSA will authorize a reasonable fee for the
authorizes a "reasonable" fee (under §206(a)(1) ofspecific services provided.
the Act) for the specific services provided.The fee agreement and fee petition process are not
A fee agreement is a written statement signed by theinterchangeable. However, if a representative elects
claimant and his or her appointed representativethe fee agreement process but SSA does not
specifying the fee the representative expects toapprove the agreement, or if an SSA reviewing official
charge and collect, and the claimant expects to pay,upholds a disapproval of a fee agreement on
for services the representative provides in pursuing theadministrative review, the representative must file a
claimant's benefit rights in proceedings before thefee petition if he or she wants to charge and collect a
Social Security Administration (SSA). For SSA tofee for their services.
approve a fee agreement, the representative must