An administrative law judge (ALJ) who favorably decides a claim(s), post-entitlement, or post-eligibility action(s) has the authority to approve or disapprove a fee agreement. An ALJ takes no action on a fee agreement when issuing an unfavorable decision or dismissal order. For general policy related to fee agreements, see Hearings, Appeals and Litigation Law (HALLEX) manual HA 01120.011. If a fully favorable decision is issued by an attorney advisor (see 20 CFR 404.942 and 416.1442), the attorney advisor has the authority to approve or disapprove the fee agreement.

There are some circumstances when action on, or the fee authorized under, a fee agreement may change, including the following:

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  If the claimant, representative, or, in limited circumstances, another individual on behalf of the representative requests administrative review of the approval or disapproval of the fee agreement, see HALLEX HA 01120.042.

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  If an effectuating component disputes the approval of a fee agreement, see HALLEX HA 01120.049.

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  If the claimant, representative, or, in limited circumstances, another individual on behalf of the representative requests administrative review of the fee amount authorized under the fee agreement process, see HALLEX HA 01120.044.

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  If the Appeals Council (AC) issues a decision after taking own motion review of a hearing level decision, see HALLEX HA 01120.006 C below and HA 01120.011.

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  If the claimant appeals a fully or partially favorable decision, see HALLEX HA 01120.014.

Under the fee petition process, the ALJ who issued the final decision or dismissal order generally reviews the fee petition and issues the fee authorization, except when the AC takes the last administrative action on the claim (see NOTE below). If a fully favorable decision was issued by an attorney advisor (see 20 CFR 404.942 and 416.1442), the attorney advisor generally reviews any submitted fee petition and issues the initial fee authorization. When the decision maker is unavailable for 30 days or more, the HOCALJ will review the fee petition and issue the initial fee authorization, or delegate that responsibility to another ALJ, to avoid inordinate delays in processing fee petitions.

The decision maker must deny a request for a fee if the representative's fee contract is contingent on a favorable outcome and the outcome was ultimately unfavorable. For more information, see HALLEX HA 01120.051.

The initial authorizer may authorize a fee up to and including $15,000.00. If, after reviewing the fee petition, the initial authorizer believes a fee of more than $15,000.00 is warranted, the initial authorizer will recommend a fee amount to a designated authorizing official, as shown in the chart below. In establishing whether the $15,000.00 limit applies, the determinative factor is the fee amount(s) the initial authorizer is recommending, not the amount the representative(s) requested.

When multiple representatives request fees for the same case, the initial authorizer will issue a fee authorization for each fee petition filed, unless the cumulative total of the fees authorized would exceed $15,000.00. If the cumulative total exceeds that amount, the initial authorizer will recommend a fee for each fee request to the designated authorizing official identified in the chart below, and the designated authorizing official will be responsible for authorizing any fees. The designated authorizing official is not bound by the initial authorizer's recommendation.

When a recommending official recommends a fee greater than $15,000.00, the designated authorizing official is as follows:

There are some circumstances when an authorized fee, based on a fee petition, may change. For example:

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  The claimant, any affected auxiliary beneficiary(ies), the representative, or, in limited circumstances, another individual on behalf of the representative requests administrative review of the fee authorization. See HALLEX HA 01120.061. See also 20 CFR 404.1720(d) and 416.1520(d).

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  An effectuating component identifies a technical or administrative error that prevents direct payment of the authorized fee and refers the matter to the initial authorizer for correction. See POMS GN 03930.060 C.

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  The initial authorizer or other hearing office staff identifies a technical or administrative error in the fee authorization that requires correction, and, within a reasonable timeframe, the initial authorizer rescinds and revises the fee authorization.

When the AC exercises its authority to issue a decision, the A member administrative appeals judge (AAJ) who favorably decides the claim(s), post-eligibility, or post-entitlement action(s) will approve or disapprove a fee agreement. The AC takes no action on a fee agreement when it is denying review or issuing a remand, unfavorable decision, or dismissal order.

Of particular note, many fee agreements are tiered at the AC level (i.e., the fee agreement limits its application through a certain point in the administrative process). When a tiered fee agreement applies, in addition to the usual considerations, the AC will also consider the instructions in HALLEX HA 01120.015 in determining whether to approve the fee agreement.

If the claimant, the representative, or, in limited circumstances, another individual on behalf of the representative requests administrative review of the approval or disapproval of the fee agreement, see HALLEX HA 01120.042. If the claimant, affected auxiliary beneficiary(ies) (Title II), eligible spouse (Title XVI), representative, or, in limited circumstances, another individual on behalf of the representative or decision maker requests administrative review of the fee amount authorized under the fee agreement process, see HALLEX HA 01120.044.

When a representative requests a fee using the fee petition process, and the AC issued the final decision or took the last administrative action in the case, staff in the Attorney Fee Branch (AFB) in the Office of Appellate Operations (OAO) will review the fee request and make a recommendation. A designated individual then authorizes a fee after reviewing the recommendation. There are no authorization limits for the initial authorizer at the AC level.

If the claimant, any affected auxiliary beneficiary(ies), the representative, or, in limited circumstances, another individual on behalf of the representative requests administrative review of the initial fee authorization under 20 CFR 404.1720(d) and 416.1520(d), see the instructions in HALLEX HA 01120.061. If an effectuating component, OAO staff, or AC member identifies a technical or administrative error in the fee authorization that prevents payment of the authorized fee or otherwise requires correction, within a reasonable timeframe, the AC will rescind and revise its fee authorization.

When a court issues a favorable decision for a claimant, the AFB in OAO is responsible for reviewing a representative's request for a fee for administrative services before the Social Security Administration (SSA). For detailed information about representative fees for services provided in court proceedings, see HALLEX HA 01120.071.