Increase in Cap on Reimbursement of Attorney Costs

By Greg V. Freeman, Attorney at Law

Oregon law has recently been updated changing the cap on attorney costs that can be recovered after a Hearing.

The cap on attorney costs has been increased as of January 1, 2026. Costs are generally things like subpoena fees, paying for doctors’ time to generate evidence regarding the disputed condition, an independent medical examination report generated by the worker’s attorney, color copies that needed to be printed, or other similar tasks that result in the worker’s attorney paying themselves.

If an employer denied something and the worker’s attorney prevails at Hearing, the Judge will seek reimbursement of his costs expended. These costs were previously capped at $1,500.00, unless the worker’s attorney showed “extraordinary circumstances” to justify more than that. The Oregon legislature passed House Bill 2799 last year, which became effective January 1, 2026. The new law provides that costs for a worker’s attorney, if they prevail, will be increased from $1,500.00 to $3,500.00. The costs can still exceed this new cap of $3,500.00 if there are “extraordinary circumstances”.

There is one brand new provision: the cap will now be increased each year on July 1 based on the cost of living increase (COLA).  We can expect a Bulletin to be published by the Worker Compensation Department before each July 1, announcing the new cap, just like COLA increases for temporary disability benefits.

It should be noted that if a worker’s attorney does not prevail after Hearing, they would not recoup any of their costs, which is something they may be considering when expending monies on working up their case.

Please do no hesitate to contact our office anytime with questions.