$4,300 Counsel Fees Meet Criteria for Lien on N.Y. Employer’s Reimbursement

Case File

When a claimant's attorney sought fees in connect with a claim, the court found a lien on the employer's reimbursement was in line with New York's Workers' Compensation Law. Simply Research subscribers have access to the full text of the decision.

Case

Jehle v. DOCCS Coxsackie Correctional Facility, et al., No. CV-23-1977 (N.Y. App. Div. 04/17/2025).

What Happened

A correction officer sustained a work-related injury and, during his absence from work, the employer continued to pay his full wages. The employer and its workers' compensation carrier filed an application for reimbursement of the wages, and the worker's attorney filed a claim for counsel fees.

Following a hearing, the workers' compensation law judge issued a decision establishing the claim and awarding a credit to the employer for reimbursement of wages paid. The WCLJ also awarded the worker's attorney the requested counsel fee of $4,300 as a lien on the employer's reimbursement.

On appeal, the Workers' Compensation Board affirmed, prompting an appeal to the Appellate Division.

Rule of Law

Under New York's Workers' Compensation Law, an award of benefits for previous periods of time, for which benefits had not previously been awarded, is an increase in the amount of compensation awarded to a claimant. Additionally, the fact that some or all of the benefits awarded to a claimant are subject to a reimbursement request by the employer does not affect counsel's statutory entitlement to a fee.

What the Court Said

The court affirmed the prior rulings, holding that, in line with Matter of Peralta v. Supreme Court, 234 A.D. 3d 1226 (N.Y. App. Div. 2025), counsel fees of 15% of that initial, increased compensation were properly awarded under the Workers' Compensation Law.

The court also rejected the carrier's argument regarding the board's decision to award counsel fees as a lien against the employer's reimbursement, citing Razzano v. New York State Dep't of Corr. & Community Supervision, 125 N.Y.S. 3d 492 (N.Y. App. Div. 2020), holding that it would not result in a windfall to the employee since the employee only received a temporary award, not a permanent or final award or schedule loss of use, and the employer remained eligible for further, full reimbursement out of future compensation awards to the employee for its advance payments of compensation during his absence.

Takeaway

Under New York's workers' compensation law, approved counsel fees shall become a lien upon compensation awarded.

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