Can I recover attorney fees from ESD after winning my unemployment appeal?
After 5 months of fighting with ESD, I finally won my appeal hearing last week! My former employer claimed I was fired for misconduct (I wasn't - they were downsizing but trying to avoid UI charges). The administrative law judge ruled completely in my favor, and I'm supposed to get about $12,500 in back benefits. Here's my question: I had to hire an attorney who helped prepare my case and represented me at the hearing. That cost me almost $2,100 which is a lot of money when you're unemployed. Is there any way to make ESD pay my legal fees since I won? The whole ordeal was incredibly stressful and completely unnecessary. Does anyone have experience with recovering legal costs after winning an appeal?
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Paolo Conti
Congratulations on winning your appeal! Unfortunately, the short answer is no - you generally cannot recover attorney fees from ESD after winning an appeal. Washington's unemployment insurance system follows the "American Rule" where each party pays their own legal costs regardless of the outcome. There are extremely limited exceptions where attorney fees might be awarded against a state agency, but they require showing the agency acted in bad faith or with gross negligence, which is very difficult to prove. Simply being wrong about your eligibility isn't enough. I know it's frustrating to pay legal fees when you shouldn't have been denied in the first place, but at least you'll be getting those back benefits soon!
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Keisha Williams
•Ugh, that's what I was afraid of. Thanks for the clear answer though. It just seems so unfair that I had to spend money to get benefits I deserved all along. My attorney was worth every penny, but still... Do you know how long it typically takes to actually receive the back payments after winning?
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Amina Diallo
u might be able to sue them in small claims court, my cousin did something similar with L&I and got some $ back, not lawyer fees exactly but compensation for delay
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Paolo Conti
•That's not accurate for ESD cases. Small claims court doesn't have jurisdiction over state agencies for performing their regular functions, even if they made a mistake. L&I claims follow different rules than unemployment insurance. Pursuing this route would likely result in a dismissal and possibly more wasted money.
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Oliver Schulz
I went through almost the exact same situation in 2023! Won my appeal after my employer falsely claimed I quit without good cause. I also spent around $1,800 on legal help and wondered the same thing. What I discovered: while you can't recover attorney fees directly from ESD, you *might* have options with your former employer if they knowingly provided false information. Talk to your attorney about whether you have a case for "wrongful contestation" against the employer. It's a long shot, but might be worth exploring if they deliberately misrepresented the circumstances of your separation. In my case, I sent a demand letter to my former employer threatening legal action for their false statements, and they actually settled with me for $1,200 of my legal costs just to avoid the hassle. Not a full recovery, but better than nothing!
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Keisha Williams
•That's really interesting! My attorney did mention something about employer liability for false statements but we focused on winning the appeal first. I'm going to follow up with her about this. My former employer definitely misrepresented what happened - we have emails proving they were eliminating positions due to budget cuts while they claimed to ESD I was terminated for performance issues. Thank you for this suggestion!
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Natasha Kuznetsova
LOL welcome to dealing with ESD... they mess up YOUR claim, YOU have to pay to fix THEIR mistake, and then YOU can't recover anything for THEIR incompetence. The whole system is rigged against workers!!!! I spent 3 months trying to get through on their phone lines before my claim was finally processed correctly. HOURS AND HOURS of my life I'll never get back sitting on hold.
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AstroAdventurer
•I had the same frustrating experience trying to reach ESD by phone last month. After getting disconnected multiple times, I tried Claimyr (claimyr.com) and they actually got me connected to an ESD agent in about 20 minutes. They have a video showing how it works: https://youtu.be/7DieNd3C7zQ?si=26TzE_zGms-DODN3. Saved me so much time and frustration. Might be helpful if you need to contact ESD again about anything.
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Javier Mendoza
Hey, so I'm an accountant (not a lawyer!) and wanted to mention - check with your tax preparer because your legal fees related to getting unemployment benefits might be tax-deductible on your federal return. It falls under "miscellaneous deductions" in some cases. Won't get you the full amount back, but could reduce your tax bill a bit depending on your situation.
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Emma Wilson
•not true anymore sadly. The Tax Cuts and Jobs Act eliminated miscellaneous deductions subject to the 2% floor for tax years 2018-2025. legal fees for getting unemployment benefits used to be deductible but aren't currently. source: I'm a tax preparer
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Oliver Schulz
One other thing to consider - how quickly do you need your back benefits? After winning my appeal, it still took ESD about 3 weeks to process the payment. If you're in a rush to get those funds, calling ESD directly after 7-10 business days to check on the status can sometimes speed things up. Just be prepared for a long wait time to speak with someone.
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Keisha Williams
•That's good to know. It's been 4 business days since the judge's decision, and nothing has happened in my online account yet. I'll give it a few more days before I start calling. I definitely need those funds ASAP after draining my savings on rent and legal fees these past months!
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