DisabilityWorkers' Compensation OffsetExcluding Legal Expenses Incurred by Claimant in Connection With Initial Award of Workers' Compensation BenefitsWashington — 1994-12-06 [94-29936]

In accordance with 20 CFR 422.406(b)(1), the Commissioner of Social Security gives notice of Social Security Ruling 94-6. The issue is whether legal expenses incurred by the claimant in connection with an initial workers' compensation (WC) award in the State of Washington were properly excluded by the Social Security Administration (SSA) from the WC offset calculation required by section 224 of the Social Security Act. SSA regulations provide that legal expenses paid or incurred in connection with a WC award or settlement are excluded to the extent such expenses are consonant with State law. Washington State law appears to permit an attorney who successfully represents a claimant in obtaining an initial award of WC benefits to charge a fee of up to 30 percent of the benefits awarded. Therefore, such attorney fees, if paid or incurred by the claimant, may be excluded from the WC offset provisions.