California Proposes New Attorney Fee Caps

The rule introduces tiered hourly rates for deposition attorneys, impacting litigation costs for employers.

Updated on Oct. 30, 2026 in Employment

Bold flat-color editorial illustration of abstract brass-toned balance weights, representing the standardization of California's legal fee regulations. — California regulators have proposed a new tiered fee cap for workers' compensation deposition attorneys to standardize billing across the state. AI Illustration. Upload story photo >

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Do you support the implementation of standardized hourly fee caps for legal services in your state?

California regulators have released revised proposals for maximum hourly attorney fees regarding workers' compensation depositions. The new framework sets tiered billing caps for legal representation, affecting how employers and insurers manage litigation costs.

Why it matters

The proposal aims to replace inconsistent, judge-led local fee policies with a uniform state-wide standard under Labor Code Section 5710. This shift provides greater cost predictability for business owners and insurers involved in compensation claims.

The proposed rule establishes maximum hourly rates ranging from $350 for newer attorneys to $500 for certified specialists. These caps replace localized judicial policies to standardize compensation defense costs across the state.

The players

California Division of Workers' Compensation

The state agency responsible for overseeing the administration and regulatory framework of the workers' compensation system.

The details

The proposal simplifies the billing landscape by eliminating previously suggested flat fees and complex increment restrictions. Under the new rules, attorneys must substantiate travel time and transcript review to claim these services at 50% of their designated hourly rate. The regulation also extends to claims involving dependent benefits, shifting the scope for employers managing such litigation.

October 28, 2026: The division released the revised proposed regulations.
November 9, 2026: Public comments period ends at 5 p.m.

Market Landscape

This proposal updates the application of Labor Code Section 5710 by formalizing fee caps previously left to local judge discretion. It marks a shift from fragmented local policies toward a centralized regulatory environment for defense costs.

Employers and insurers should audit their current litigation spend against these tiered rates to prepare for potential cost adjustments. Owners should note that the public comment period closes on November 9, providing a final window to influence the rule's implementation.

The takeaway

Standardizing attorney rates helps remove the volatility of local judicial fee decisions from your litigation budget. Track the progress of these rules through the official rulemaking portal to ensure your legal team and insurance partners adjust their billing practices accordingly.