Attorney's fees for representing an employee in a workers' compensation claim are typically deducted from the compensation awarded to the employee. Generally, 25% of the compensation award is considered reasonable as the legal fee. The North Carolina Industrial Commission has the authority to authorize payment of the attorney's fee and to determine whether the amount is reasonable in workers' comp cases; any fee or other type of payment paid to an attorney representing an employee must be approved by the NC Industrial Commission. If the attorney and employee have entered into an agreement regarding the fee, then the Commission is obligated to enforce the agreement as written, provided it finds the fee reasonable. In determining the reasonableness of the attorney's fees in workers' compensation cases, the Industrial Commission looks at a number of factors, including: (1) the time invested in the case; (2) the amount of the compensation award (3) the result of the claim; (4) whether it is a fixed-fee arrangement or contingent on the outcome of the claim; (5) the customary fee for such services; and (6) the nature of the attorney's services.

If one party brings a claim or defends against a claim without reasonable ground to do so, the Industrial Commission can compel that party to pay the full cost of the proceedings, including the opposing party's attorney's fees. This authority exists to discourage unfounded claims by employees and bad-faith defenses by employers.

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