In a workers' compensation settlement where the employee is later represented, who must pay the attorney fees when the case is settled?

In a workers' compensation settlement where the employee is later represented, who must pay the attorney fees when the case is settled?

• A. Employee
• B. Employer
• C. Employee's attorney is paid out of award
• D. The insurance carrier

Answer: (D)

When a California workers’ compensation case is settled and the employee has representation, the attorney fees are treated as a cost of the claim that the employer/insurer must cover. The insurance carrier pays the attorney directly (often from the settlement funds, with any approved fee set by the proper authority). This arrangement ensures the employee can be represented without paying out of pocket and that the case is resolved with proper legal oversight. So, the carrier is responsible for the attorney fees as part of the settlement process. The other options would not reflect how fees are funded in a settled claim with an attorney involved.

When a California workers’ compensation case is settled and the employee has representation, the attorney fees are treated as a cost of the claim that the employer/insurer must cover. The insurance carrier pays the attorney directly (often from the settlement funds, with any approved fee set by the proper authority). This arrangement ensures the employee can be represented without paying out of pocket and that the case is resolved with proper legal oversight.

So, the carrier is responsible for the attorney fees as part of the settlement process. The other options would not reflect how fees are funded in a settled claim with an attorney involved.