KRS 342.320: Approval of attorney's and physician's fees and hospital charges -- Limits

on attorney's fees -- Payment of attorney fees -- Form indicating payment

method selected -- Award by administrative law judge -- Fees for representing

employers.

(1) All fees of attorneys and physicians, and all charges of hospitals under this chapter,

shall be subject to the approval of an administrative law judge pursuant to the

statutes and administrative regulations.

(2) In an original claim, attorney's fees for serv ices under this chapter on behalf of an

employee shall be subject to the following maximum limits:

(a) For attorney -client employment contracts entered into and signed after July

14, 2000, but before July 14, 2018, twenty percent (20%) of the first twenty -

five thousand dollars ($25,000) of the award, fifteen percent (15%) of the next

ten thousand dollars ($10,000), and five percent (5%) of the remainder of the

award, not to exceed a maximum fee of twelve thousand dollars ($12,000).

This fee shall be paid by the employee from the proceeds of the award or

settlement; and

(b) For attorney-client employment contracts entered into and signed on or after

July 14, 2018, twenty percent (20%) of the first twenty -five thousand dollars

($25,000) of the award, fifteen percent (15%) of the next twenty-five thousand

dollars ($25,000), and ten percent (10%) of the remainder of the award, not to

exceed a maximum fee of eighteen thousand dollars ($18,000). This fee shall

be paid by the employee from the proceeds of the award or settlement.

(3) In approving an allowance of attorney's fees, the administrative law judge shall

consider the extent, complexity, and quality of services rendered, and in the case of

death, the Remarriage Tables of the Dutch Royal Insurance Institute. A n attorney's

fee may be denied or reduced upon proof of solicitation by the attorney. However,

this provision shall not be construed to preclude advertising in conformity with

standards prescribed by the Kentucky Supreme Court.

(4) No attorney's fee in any case involving benefits under this chapter shall be paid until

the fee is approved by the administrative law judge, and any contract for the

payment of attorney's fees otherwise than as provided in this section shall be void.

The motion for approval of an attorney's fee shall be submitted within thirty (30)

days following finality of the claim. Except when the attorney's fee is to be paid by

the employer or carrier, the attorney's fee shall be paid in one (1) of the following

ways:

(a) The employee may pay the attorney's fee out of his or her personal funds or

from the proceeds of a lump-sum settlement; or

(b) The administrative law judge, upon request of the employee, may order the

payment of the attorney's fee in a lump sum directly to the attorney of rec ord

and deduct the attorney's fee from the weekly benefits payable to the employee

in equal installments over the duration of the award or until the attorney's fee

has been paid, commuting sufficient sums to pay the fee.

(5) At the commencement of the atto rney-client relationship, the attorney shall explain

to the employee the methods by which this section provides for the payment of the

attorney's fee, and the employee shall select the method in which the attorney's fee

is to be paid. His or her selection and statement that he or she fully understands the

method to be used shall be submitted by his or her attorney, on a notarized form

signed by the employee, at the time the motion for approval of the attorney's fee is

submitted. The commissioner shall develop the format and content of the form to be

used pursuant to this section. The form to be used shall list on its face all options

permitted in this section for the payment of an attorney's fees and contain an

explanation in nontechnical language of each method.

(6) In a claim that has been reopened pursuant to the provisions of this chapter, an

attorney's fee may be awarded by the administrative law judge subject to the limits

set forth in subsection (2) of this section. In awarding the attorney's fee, the

administrative law judge shall consider the factors set forth in subsection (3) of this

section. If no additional amount is recovered upon reopening, no attorney's fee shall

be awarded. No attorney's fee shall be allowed or approved exceeding the amounts

provided in subsection (2)(a) of this section applicable to any additional amount

recovered.

(7) Attorney's fees for representing employers in proceedings under this chapter

pursuant to contract with the employer shall be subject to approval of the

administrative law judge in the same manner as prescribed for attorney

representation of employees. Employer attorney's fees are subject to the limitation

of eighteen thousand dollars ($18,000) maximum fees except that fees for

representing employers shall not be dependent upon the result achieved. Employer

attorney's fees may be paid on a periodic basis while a claim is adjudicated and the

payments need not be approved until the claims resolution process is completed. All

such approved fees shall be paid by the em ployer and in no event shall exceed the

amount the employer agreed by contract to pay.