If an insurance carrier files an Application for Adjudication of Claim against an employee and they later get represented, who pays for attorneys' fees when settled?

In California workers' compensation cases, when an insurance carrier files an Application for Adjudication of Claim and the employee subsequently obtains legal representation, the responsibility for attorneys' fees typically falls upon the insurance carrier when a settlement is reached. This is based on the principle that the employer's insurance is liable for the claim, and the costs related to settling the claim, including attorney fees, are generally covered by the insurance carrier.

Additionally, California law dictates that when a claim is settled and the employee is represented by an attorney, the insurance carrier is obliged to pay reasonable attorney fees as part of the settlement agreement. This ensures that employees who are navigating the complexities of the workers' compensation system can receive the necessary legal support without having to bear the burden of those costs themselves, particularly in a situation where they are seeking compensation for work-related injuries.

By structuring the payment of attorney fees in this manner, the system helps to promote fair and equitable access to legal representation for injured workers while also placing the financial responsibility on the entity that is generally in a better position to absorb such costs.