How disability lawyers charge for SSDI and SSI cases
A disability lawyer who takes your Social Security case works on contingency, which means they collect a fee only if you win. The fee is set by federal law, not by the lawyer or the firm. You do not pay anything upfront, and you do not pay if you lose.
The lawyer's fee comes from your back pay — the money Social Security owes you from the date you filed your claim until the date you are approved. The fee does not come from your ongoing monthly benefit. If you receive no back pay, the lawyer receives no fee.
Because the fee is capped by law, all disability lawyers in the same state charge the same maximum amount. The only variation is whether a particular lawyer charges less than the cap, and how they handle costs separate from their fee.
Key Takeaways
- Federal law caps a disability lawyer's fee at 25 percent of your back pay, with a maximum of $7,200 as of 2024, whichever is smaller.
- You pay nothing upfront and nothing if you lose; the fee comes only from back pay awarded by Social Security.
- Costs for medical records, informed reports, and court filing fees are separate from the lawyer's fee and may be your responsibility or the lawyer's, depending on your agreement.
- The lawyer must obtain written approval from Social Security before collecting any fee, and you will see the exact amount on the Social Security payment notice.
- If you disagree with the fee amount, you can request a review by a federal judge before the money is paid.
The federal fee cap and how it applies to your case
Social Security sets the maximum fee at 25 percent of your back pay, but no more than $7,200 total. This means the lawyer takes whichever is smaller: one-quarter of what you are owed, or $7,200.
If your back pay is $20,000, the lawyer can take 25 percent, which is $5,000. If your back pay is $40,000, the lawyer could take 25 percent ($10,000), but the law caps it at $7,200, so the lawyer receives $7,200. The $7,200 cap has remained the same for several years; Social Security does not adjust it annually.
Some lawyers charge less than the cap. A lawyer might charge 20 percent or offer a flat fee lower than $7,200. This is a negotiation between you and the lawyer, and you should ask about it before you hire them. The lawyer must disclose their fee in writing before you sign a representation agreement.
What costs are separate from the lawyer's fee
The lawyer's fee covers their time and work on your case. It does not cover the expenses of building your case, which include obtaining medical records from doctors, paying for informed medical opinions, court filing fees, and transcript costs if your case goes to federal court.
Different lawyers handle these costs differently. Some lawyers advance the costs — meaning they pay them out of pocket and deduct them from your back pay after you win. Others ask you to pay costs as they occur. Some firms cover certain costs and ask you to cover others. You must ask your lawyer in writing how costs will be handled before you hire them.
If the lawyer advances costs, those costs are deducted from your back pay before the fee is calculated. For example, if your back pay is $20,000 and costs are $2,000, the lawyer calculates the fee on $18,000 (25 percent of $18,000 is $4,500). You receive the remaining balance after the fee and costs are subtracted.
How the fee is approved and paid
Before a disability lawyer can collect any fee, they must request approval from Social Security using Form SSA-1696-U6. This form tells Social Security the amount of back pay you received and the fee the lawyer is requesting. Social Security reviews the fee to make sure it does not exceed the legal cap.
Once Social Security approves the fee, it is deducted directly from your back pay payment. You will see the fee listed on the Social Security payment notice you receive. The notice shows your total back pay, the lawyer's fee, any costs, and the amount you receive.
The lawyer does not bill you separately. Social Security pays the lawyer directly from your back pay. If you disagree with the fee amount shown on the notice, you have the right to request a fee review by a federal judge before the money is released. This process is free and does not require you to hire another lawyer.
When you might owe more than the lawyer's fee
If your case goes to federal court (the Appeals Court level), you may owe costs that are not covered by the lawyer's fee cap. Court filing fees, transcript costs, and fees for informed witnesses can add up quickly at the federal level. Some lawyers will advance these costs; others will ask you to pay them.
Before your case reaches federal court, ask your lawyer in writing what costs you might face and who will pay them. If the lawyer advances costs and you win, those costs come out of your back pay before you receive your portion. If you lose at the federal level, you may owe the lawyer for costs they advanced, depending on your agreement.
This is why it is important to discuss costs early. A case that goes to federal court can cost $3,000 to $10,000 or more in expenses, and you need to know whether you or the lawyer is responsible for paying them.
What to ask a disability lawyer before you hire them
When you contact a disability lawyer, ask these questions in writing and request written answers:
- Do you charge the full 25 percent fee, or do you charge less?
- How do you handle costs for medical records, informed reports, and court fees?
- Will you advance costs, or will I pay them as they occur?
- If I lose at the Appeals Court level, will I owe you for costs you advanced?
- What is your timeline for handling the case, and how often will you contact me with updates?
The lawyer must provide a fee agreement in writing before you sign anything. This agreement states their fee, how costs are handled, and what you can expect. Read it carefully and ask questions about anything you do not understand. Do not sign until you are comfortable with the terms.
Frequently Asked Questions
Can a disability lawyer charge me if I lose my case?
No. Disability lawyers work on contingency, which means they are paid only if you win and receive back pay. If Social Security denies your claim at any stage, you owe the lawyer nothing. However, you may still owe costs the lawyer advanced for medical records or court fees, depending on your fee agreement.
What if Social Security awards me back pay but no lawyer was involved?
If you won your case without a lawyer, you keep all the back pay. If you then hire a lawyer to help with a later appeal or issue, the lawyer's fee applies only to new back pay earned after you hired them, not to back pay you already received.
Can I negotiate the lawyer's fee below the 25 percent cap?
Yes. Some lawyers charge 20 percent, 15 percent, or a flat fee lower than $7,200. This is negotiable and should be discussed before you sign a representation agreement. Always get the fee in writing.
Who pays for medical records and informed reports?
This depends on your fee agreement with the lawyer. Some lawyers advance these costs and deduct them from your back pay after you win. Others ask you to pay costs upfront. Ask your lawyer in writing before you hire them, and make sure the answer is in your fee agreement.
What happens if I think the lawyer's fee is too high?
You can request a fee review by a federal judge before Social Security releases the payment. You do not need another lawyer to do this. The judge will examine whether the fee is reasonable given the work done and the complexity of the case. This review is free.