Requires a request for approval of attorney's fees in workers compensation proceedings to include the employee-executed engagement agreement and an itemized statement of services rendered. Allows labor and industrial relations director to approve, modify, or deny the fee upon certain findings.

A BILL FOR AN ACT

SECTION 1. Section 386-94, Hawaii Revised Statutes, is amended to read as follows:

"§386-94 Attorneys, physicians, other health care providers, and other fees. (a) Claims for services shall not be valid unless approved by the director or, if an appeal is had, by the appellate board or court deciding the appeal. Any claim so approved shall be a lien upon the compensation in the manner and to the extent fixed by the director, the appellate board, or the court.

(b) The employee and employee's attorney may negotiate the hourly rate to be paid as attorney's fees. An attorney's request for approval of attorney's fees, submitted to the director or the appellate board, shall include a copy of the engagement agreement signed by the employee and an itemized statement of services rendered.

If the employee objects to the request for approval of attorney's fees, the director may approve or modify the fee request, as appropriate, after reviewing the request and supporting documentation. The director's approval or modification shall be based on all relevant factors, including, but not limited to, the engagement agreement, the experience of the attorney, the difficulty of the case, and the outcome of the claim.

The director may deny or modify attorneys' fees in the absence of any objection by the employee, only if the director determines that a gross injustice will occur without the intervention.

(c) Any person who receives any fee, other consideration, or gratuity on account of services so rendered, without approval, in conformity with [the preceding paragraph,] subsection (a), shall be fined by the director not more than $10,000."

SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 3. This Act shall take effect upon its approval.