I-1-2-11.Fee Agreements — General Policy
Last Update: 12/9/24 (Transmittal I-1-108)
A fee agreement is a written statement, signed by the claimant and the representative, specifying the fee that the representative expects to charge and collect and that the claimant expects to pay for the representative's services before the Social Security Administration (SSA). The individuals who sign the fee agreement are considered the parties to the agreement. Although the fee agreement must be a written statement and meet certain statutory requirements to be approved, there is no prescribed language.
NOTE:
SSA provides a standardized fee agreement Form SSA-1693. This form solicits required information to comply with the statutory requirements for fee agreements. The SSA-1693 may be used by any representative, and multiple appointed representatives may sign the same form. The electronic version of Form SSA-1693 (e1693) is available on SSA's public website at http://www.ssa.gov/representation.
When issuing a favorable (fully or partially) decision, a decision maker must approve a fee agreement if the statutory conditions under section 206(a)(2) of the Social Security Act are met and no exceptions apply. The conditions and exceptions are set forth in Hearings, Appeals, and Litigation Law (HALLEX) manual I-1-2-12. A decision maker will take no action on a fee agreement if they are not issuing a favorable decision on any claim.
If a decision maker approves a fee agreement in connection with a favorable decision, but a later action vacates the favorable decision, that action also vacates the approval of the fee agreement and any authorization of fees under the fee agreement. If, after resolving the issue that resulted in the vacated action, a decision maker again issues a favorable decision on the case, they will approve or disapprove the fee agreement based on the circumstances that exist as of the date of the new decision (even if adjudication is limited through the date of the prior decision).
A fee agreement:
May be submitted with the Form SSA-1696 (Claimant's Appointment of a Representative), and must be signed by both the claimant and representative(s);
Remains in effect through the entire administrative review process and any administrative proceedings following a Federal court remand, unless the fee agreement is amended or limited in application (see next bullet), or a fee is later waived;
May contain a provision that limits its application to services through a specific level of the administrative review process (see HALLEX I-1-2-15 for information on “two-tiered fee agreement”);
May contain language that would allow for an increase in the maximum fee that SSA can authorize if the Commissioner increases the statutory “fee cap” after the date of the agreement; and
May be amended before the date of the favorable decision.
For fee agreement evaluation policy, see HALLEX I-1-2-12.