How are attorneys compensated in Social Security disability cases?
Attorneys in Social Security disability cases are compensated by law by the claimant. Traditionally, at least over the past decade or so, the claimant will sign a 1696 form as well as an authorization to represent me. An attorney comes in to represent the claimant. The attorney gets paid by the government deducting 25% of past due benefits from the claimant’s back payment.
This limitation is also subject to either $6,000 or 25%. Whichever is the lesser. So it’s not unusual for an attorney to get a fee of a couple hundred dollars on a case and it’s more likely they’ll get a fee of a few hundred dollars and it is that he’ll get the full amount.