Recently, Social Security has increased the statutory fee cap for attorney’s successfully representing Claimants before the Social Security Administration. Effective June 22, 2009, the fee cap for Representatives has been increased from $5,300 to $6,000. This means that an attorney’s fee agreement must be 25% of the Claimant’s past due benefits with a cap of $6,000. However, the cap of $5,300 is binding on any fee agreement entered before June 22, 2009, unless a new fee agreement addressing the increased cap of $6,000 is executed after June 22, 2009. Disability Attorneys should be mindful of this fact.
Congress has recently passed H.R. 4532, the “Social Security Disability Applicants’ Access to Professional Representation Act of 2010.” H.R. 4532 makes the direct payment of fees in SSI claims permanent. H.R. 4532 was passed on February 22, 2010 by unanimous consent. President Barrack Obama has signed the bill into law in March of 2010.