Alvin Paz Varela — ADJ20340241

Applicant's attorney petitioned for reconsideration of a March 5, 2026 Order Approving Compromise and Release in which the WCJ approved the $25,000 C&R but reduced the requested 15% attorney fee to 9%. The WCJ had issued an Order Suspending Action and Notice of Intention proposing the reduction, then, upon receiving the applicant's Petition for Removal (treated as an objection), rescinded the OSA/NIT and issued the OACR with a 9% fee without holding a hearing or creating an evidentiary record. The Appeals Board held that while the WCJ has broad discretion to reduce an agreed fee, the attorney is entitled to due process—notice, an opportunity to be heard, and a record—before the fee is reduced. The Board granted reconsideration, rescinded the OACR, and returned the matter to the trial level for further proceedings.