In May 2024, the Social Security Administration (SSA) published an update in the Federal Register which provided an increase in the fee cap for attorneys representing claimants for Social Security Disability (SSDI) and Supplemental Security Income (SSI).
How are Social Security Disability Attorneys Paid?
Generally the attorney or representative fees are required to be a contingency basis, meaning that the attorney or representative can only collect a fee if they are successful in helping an individual to obtain benefits. You only pay for attorney time if you are granted benefits.
How much do I need to pay my SSDI Attorney?
Fees are set by the Social Security Administration and as of June 30, 2022 the fee was 25% of a claimants back benefit or the amount owed at the time the first check is issued with a fee cap of $7200. As of November 30, 2024 the fee cap will increase to $9200.00. The increased fee will apply to any claim that is adjudicated/decided on or after November 30, 2024.
How much are attorney fees going to increase?
The new fee cap will also include a yearly Cost of Living Adjustment (COLA). This means the fee cap will increase each year by the same percentage increase that Social Security or Supplemental Security Income recipients receive.
Each year the Social Security Administration analyzes inflation and the cost of living to determine if Social Security and Supplemental Security Income beneficiaries should be granted an increase in their benefits due to increases in the cost of food, housing, transportation, medical care and other necessities.
That cost of living increase is usually announced in October and becomes effective on January first of the following year. Historically the cost of living adjustments have ranged from 1% to 11% with about 2% being average. Due to high inflation, the 2022 COLA adjustment was 8.7%, a historic high since 1981 when the COLA adjustment was 11.2% In the future the attorney fee cap will also be adjusted by those COLA increases.
What is the most a disability lawyer can charge?
Currently, a disability lawyer can charge clients up to 25% of a client’s past-due benefits up to $7,200. NerdWallet.com explains the government limits in more detail and provides some examples as we have included here:
The government limits how much disability lawyers can charge clients: They receive either up to 25% of a client’s past-due benefits or $7,200, whichever is the lower amount. The SSA deducts this amount from your past-due benefits and sends it directly to your attorney. That fee cap is expected to increase to $9,200 in the fall, the Social Security Administration announced in March 2024.
For example, if you were approved for $21,000 in past-due benefits, your attorney could collect up to 25% of that amount. The government would deduct $5,250 from your past-due benefits to pay the attorney, and you would receive the remaining $15,750.
However, if your past-due benefits were $32,000, your attorney would only receive up to $7,200 because 25% of your past-due benefits — $8,000 — would be higher than the current fee cap. This would be deducted from your past-due benefits, leaving you with $24,800.
Your lawyer can also charge for out-of-pocket costs, such as fees for requesting copies of medical records or mileage.
Source: Nerd Wallet.com Published Aug 7, 2023
Even with an increased fee, the assistance of an experienced attorney who is well versed in disability claims is incredibly valuable.
Resources Social Security Disability Lawyer Fees
Here are some resources regarding social security lawyers, disability claims, and attorney fees:
- https://www.ssa.gov/representation/fee_agreements.htm
- https://www.nerdwallet.com/article/investing/social-security/disability-lawyer
- https://www.newsweek.com/getting-legal-help-social-security-could-cost-more-1885697
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