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Andrea Dalessandro
✦ Certified Specialist in Workers’ Compensation Law — Certified by the State Bar of California, Board of Legal Specialization ✦
Serving injured workers across California. Board-certified specialist; no fee unless we win.
By Eman Yazdchi, Esq. · Certified Specialist in Workers' Compensation Law, State Bar of California Board of Legal Specialization
In California, Labor Code section 4900 governs how the WCAB-approved attorney fee under §4906 is paid out from the injured worker's permanent disability award. The section 4900 California rule typically withholds the fee from the back-end §4658 PD weeks so the California worker receives the front-end PD weeks in full.
California Labor Code section 4900 governs how the WCAB-approved California Labor Code §4906 California contingent attorney fee is actually distributed from the California injured worker's permanent disability award once the California Labor Code §4660 California rating is final and California Labor Code §4658 California PD payments commence. Under section 4900, the typical California mechanism withholds the WCAB-approved attorney fee from the back-end California Labor Code §4658 California PD weeks — the California insurer pays the California worker the full weekly PD rate up front and reserves the fee from the final weeks of the schedule for direct payment to the worker's attorney. The section 4900 California mechanism ensures the California worker receives current wage-replacement income while the attorney's fee accumulates against the back end.
Under California Labor Code section 4900, the WCAB-approved California Labor Code §4906 California fee is typically calculated as a percentage (usually 12% to 15%) of the present value of the California Labor Code §4658 California PD award. The section 4900 California rule identifies the back-end weeks needed to cover the fee at the statutory weekly PD rate, and the insurer commutes those weeks into a lump sum paid directly to the worker's attorney. The California worker continues to receive the front-end California Labor Code §4658 California PD weeks at the full weekly rate without any deduction; the section 4900 California fee withholding is invisible to the worker's current cash flow.
Under California Labor Code section 4900 and California Labor Code §4659 (life pension), when the worker's PD rating is 70-99% and the California Labor Code §4659 California life pension runs for life after the California Labor Code §4658 California scheduled weeks, the section 4900 California fee distribution applies to the California Labor Code §4658 California portion typically. For the California Labor Code §4659 California life pension portion, the fee mechanics depend on whether the parties opted for a lump-sum commutation or ongoing weekly payments; the WCAB judge approves the section 4900 California allocation case-by-case. For 100% PTD cases, the section 4900 California allocation is necessarily different given the lifetime payment stream.
Under California Labor Code section 4900, California Labor Code §4906 (contingent fee), and California Labor Code section 5710 (deposition fees), the California attorney-fee streams are layered. The California Labor Code §4906 California contingent fee is the percentage fee on the underlying California Labor Code §4658 California PD recovery, with the section 4900 California distribution from the back-end weeks. The section 5710 California deposition fee is a separate California insurer-paid hourly fee for the worker's deposition appearance, not deducted from the recovery. The two California fee streams together fund the worker's attorney without forcing the worker to absorb deposition costs.
Under California Labor Code section 4900 (fee distribution) and California Labor Code §4903 (lien framework), the California attorney's fee and other secured interests on the comp award operate within a single statutory hierarchy. The California Labor Code §4903 California rule allows attorneys, medical-legal providers, and certain other claimants to record liens against the California comp recovery; section 4900 California then governs how the attorney's WCAB-approved fee is actually paid out of the California Labor Code §4658 California PD award. The two California sections together build the California fee-and-lien framework: California Labor Code §4903 California establishes the right to a lien, section 4900 California governs the timing and mechanics of payment.
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