You could pay $30,000 for a day with a retired state Supreme Court justice. Or you could pay about a tenth of that amount for an effective mediator.

Teddy Snyder

When you’re ready to choose a mediator, check out the person’s bio (resume) and request a copy of the fee schedule. A few mediators post their fees online, but usually you need to request a current fee schedule.

Who pays?

In civil cases, the fee is typically split among the parties, though sometimes one side agrees to be the sole payer. In a typical workers' compensation mediation involving only the applicant and one employer, the employer pays the cost. If there are multiple parties or issues, such as a serious and willful claim or a third-party claim for the same injury, the parties decide how the cost will be divided.

Holding your place

Some mediators, including WCMediator.com, charge an administrative fee that protects your choice of date. This fee covers all pre-mediation communications to set up the meeting. Payment confirms the parties are going forward. Some mediators charge as much as $1,000 for a cancellation within seven days of the reserved date.

Special arrangements

Carve-outs are alternative workers’ compensation programs between employers and unions. Required mediation can be a feature of these programs. There is no cost to the injured worker to participate.

When a judge orders parties to mediate, they often benefit from a reduced-fee arrangement. Sometimes a court will provide free mediation to parties in the courthouse. Outside the courthouse, mediators on the court’s approved panel agree to abide by a fee schedule. 

This may get you a limited number of hours at no cost or at a reduced cost. Often when such a mediation is clearly progressing toward resolution and time runs out, parties choose to continue mediating at the full-fee rate.

Flat vs. hourly

Some mediators charge by the hour, and some charge a flat fee for a half or full day of mediation. Some mediators specify that in addition to the flat fee, hourly fees will be assessed if the mediation continues past the time allowance.

One mediator quotes a “flat half-day fee” on his website, which buys “1 hour preparation, 4 hours of session.” Don’t think you can book a half day for a flat fee and simply go long. The mediator and other parties may have other time commitments.

If you use a full day of the mediator’s time, you will be charged for a full day. Clarify how charges for travel time and expense may be calculated. In addition to his hourly mediation fee, one Georgia mediator charges a flat $15,000 for travel within a five-state area, plus meal expenses.

Features of a flat fee include predictability for the parties and payment upfront to the mediator. Using an hourly fee structure assures that you won’t pay for more time than you use. Workers' compensation mediations are usually complex and take about five hours.

Bottom line

At the end of the day, the bottom line may be about the same. Under either arrangement, most mediators do a lot of work without compensation, such as communicating with the parties in advance of the mediation. Additionally, if the case does not settle at mediation, mediators typically continue working with the parties by phone to reach resolution without additional charge.

Unless you have submitted a human-size set of documents for review (not recommended), mediator preparation time is also free. If you are unsure, ask what the fee does and does not include, and what services do not incur a charge.

If you don’t like the billing method on the mediator’s fee schedule, you can request an alternate quote that fits your comfort zone.

The real question is how much that claim will cost if you don’t settle. Mediation is highly effective and efficient in helping parties close claims, an excellent bargain compared to uncertain and expensive future litigation.

Attorney Teddy Snyder mediates workers' compensation cases throughout California. She can be contacted through WCMediator.com.