10 Things You Need to Know About Workers’ Compensation Law in New Jersey

10 Things You Need to Know About Workers’ Compensation Law in New Jersey

If you’ve been injured at work in New Jersey, knowing your rights under the state’s workers’ compensation system and how to make that system work for you may play a major role in what your future looks like. 

Whether you’re dealing with a recent workplace accident or still struggling with the consequences of a long-term injury, some critical rules and benefits apply to your situation.

Here we will break down the top 10 things to know about New Jersey workers’ compensation laws—from who qualifies for benefits to how long they last. You’ll learn what the law actually says, how the process works, and what to do if your claim gets delayed or denied. 

Knowledge is power. If you’re an injured worker who just wants answers, support, and a clear path forward, read on. If you’re uncertain about your rights, have questions about filing, or need help with your workers’ compensation claim, an experienced New Jersey workers’ compensation lawyer is ready to help you.

10 Things to Understand About Workers' Compensation in New Jersey

1. What Is Workers’ Compensation and Who Is Covered?

Workers’ compensation is a mandatory, no-fault insurance system designed to help employees recover from job-related injuries or illnesses without needing to prove fault. New Jersey law requires nearly every employer to carry this insurance, even if they only have one employee. This includes corporations, partnerships, LLCs, and even sole proprietors who employ others.

The system is regulated by the New Jersey Workers’ Compensation Law (N.J.S.A. 34:15-1 et seq.), and it helps ensure that injured employees receive benefits while protecting employers from direct lawsuits.

Independent contractors are generally excluded, but misclassification is a common issue. If you perform services under the direction and control of an employer, you may still qualify as an employee, even if labeled otherwise.

2. What Does Workers’ Compensation Insurance Actually Cover?

There are three core types of workers’ comp benefits in New Jersey:

• Medical treatment: Includes hospital visits, prescriptions, surgeries, and rehabilitation. The insurance carrier or employer selects the treating physician.
• Temporary disability: You can receive 70% of your average weekly wage (subject to minimum and maximum limits) if you’re out of work for more than 7 days.
• Permanent disability: If your injuries leave long-term effects, you may qualify for Permanent Partial Disability (PPD) or Permanent Total Disability (PTD) benefits.
• Death benefits: Payable to dependents of workers who die from job-related injuries or illnesses, including a capped amount of funeral expenses.

These benefits are tax-exempt under N.J.S.A. 54A:6-6.

3. How Do I Qualify for Benefits After a Workplace Injury?

To qualify for benefits, you must:

• Be an employee at the time of the incident.
• Suffer an injury or illness that arose out of and in the course of employment.
• Report your injury to a supervisor as soon as possible.

There is no requirement to submit a written notice, but providing documentation is always wise. If you delay reporting, you may risk denial of your claim.

Your injury must render you unable to work for more than seven days to collect temporary disability benefits. If your disability lasts for more than seven days, you will receive benefits retroactively to the first day you were out of work.

4. What Types of Injuries Are and Aren’t Covered?

Most on-the-job injuries are covered. However, workers may be denied compensation for:

• Self-inflicted injuries
• Injuries from fighting or horseplay
• Accidents caused by intoxication
• Violations of clearly stated safety rules

If you’re injured off-site but performing work-related tasks, like delivering packages or attending a meeting, those incidents are generally covered.

Travel to and from work is not covered, unless you're traveling between job sites or performing an errand on behalf of your employer.

5. Who Chooses My Doctor and What Are My Rights?

New Jersey law gives the employer or their insurance carrier the right to choose the treating physician. You must attend all scheduled appointments and follow the care plan to remain eligible for benefits.

There are three limited exceptions where you may choose your own provider:

• Your employer refuses to provide care.
• You’re in an emergency situation.
• You receive explicit permission to select a provider.

If you treat outside the authorized network without approval, you will likely be responsible for the costs.

6. What Is Maximum Medical Improvement (MMI) and Why Does It Matter?

MMI is a medical determination that your condition has stabilized and is not expected to improve further with additional treatment. It is not the same as being healed. It means you’ve reached the best possible recovery based on current medical knowledge.

Once MMI is declared:

• Temporary disability benefits usually stop.
• You may be evaluated for permanent disability benefits.
• Settlement discussions may begin, including Section 20 or Section 22 resolutions (read more about these options below).

Disputes over MMI can arise, especially if your treating doctor and the insurance company’s Independent Medical Examiner (IME) disagree. In that case, you may need legal representation to challenge the determination.

7. What Should I Do If My Claim Is Denied or Delayed?

If your benefits are denied, delayed, or improperly calculated, you can file a claim with the New Jersey Division of Workers’ Compensation. You have the option to:

• Request an informal hearing with a judge to resolve disputes without formal litigation.
• File a formal claim petition, which must be submitted within two years of your last compensation payment or the accident date.

A formal claim may lead to discovery, hearings, or even trial. It's best to work with an attorney if your case involves disputed facts, denied benefits, or permanent injuries.

8. Can I Be Fired for Filing a Workers’ Comp Claim?

No. Retaliation for filing a claim is illegal under N.J.S.A. 34:15-39.1. Your employer cannot terminate, demote, or harass you solely for asserting your legal rights.

If you are terminated, and you believe the reason is tied to your claim, you may have grounds for a discrimination complaint. That could result in reinstatement, back pay, or even separate civil penalties against your employer.

However, if you're fired because you can't perform your job duties after MMI—and not because you filed a claim—that may fall under the Americans with Disabilities Act (ADA) or New Jersey Law Against Discrimination (NJLAD), which create separate legal issues.

9. What if There’s a Third Party Involved in My Injury?

In addition to a workers’ compensation claim, you may also have a third-party liability claim if another person or entity contributed to your injury. Common examples include:

• A driver causing a crash while you were on delivery
• A contractor on a shared job site who creates unsafe conditions
• A manufacturer of defective equipment that injured you

Workers' comp covers medical bills and partial wages, but third-party claims may provide full wage loss, pain and suffering, and other damages.

It’s possible to file both claims at the same time, but any recovery from the third party may be subject to reimbursement (a “lien”) by your employer’s insurance carrier.

10. How Long Do Workers’ Compensation Benefits Last in New Jersey?

Benefit duration depends on the type and severity of your injury:

• Temporary Disability Benefits: Last until you return to work, are cleared by your doctor, or reach MMI—up to a maximum of 400 weeks.
• Permanent Partial Disability (PPD): Determined by a percentage of loss and paid weekly based on state schedules.
• Permanent Total Disability (PTD): Start as 450 weeks of benefits and may extend indefinitely if you prove continued inability to work.
• Death Benefits: Paid weekly to dependents, plus funeral expenses.

Benefits can stop early if you fail to comply with medical treatment, return to work, or accept light duty (if offered and medically appropriate).

How to File a Workers’ Compensation Claim in New Jersey

Filing a workers' compensation claim in New Jersey isn't always straightforward. While the system is designed to help injured workers, the insurance company controls most of the process, which can make it feel unfair.

To protect your rights and improve your chances of receiving full benefits, you need to understand the step-by-step claim process. The basics of the process follow, but the administrative and strategic complexities of the process may require a lawyer to successfully complete.

Step 1: Report the Injury Immediately

You should notify your employer as soon as possible after the injury occurs. You can give this notice verbally to a supervisor, foreman, or HR representative, but you’re better off letting a lawyer do it for you.

Notify your employer of your injury as soon as possible. While New Jersey law allows up to 90 days for this notice, waiting can jeopardize your claim.

Step 2: Request Medical Care

Ask your employer to send you to a designated medical provider. Remember, you cannot choose your own doctor unless it's an emergency or your employer fails to act. Getting unauthorized care can leave you stuck with the bill.

Step 3: File a Claim if Necessary

In many cases, the employer’s insurance company will accept the claim and start providing benefits. But if your claim is denied or you don’t receive appropriate treatment or compensation, you can file:

• An Informal Claim Petition: A faster option involving a hearing with a judge who may offer guidance or mediation.
• A Formal Claim Petition: This starts the legal process and must be filed within two years of your injury or the last compensation payment (N.J.S.A. 34:15-51).

Step 4: Attend Medical Exams and Follow Instructions

You must cooperate with medical care, attend Independent Medical Exams (IMEs) if requested, and follow your doctor’s recommendations. Failing to do so can be used as grounds to reduce or deny your benefits.

Settlement Options: Section 20 vs. Section 22

When you've reached Maximum Medical Improvement (MMI), your case may move toward settlement. In New Jersey, there are two primary settlement types under the workers’ comp system.

Section 20 Settlement

A lump sum, full-and-final settlement. If you agree to this type of resolution, you cannot reopen your case, even if your condition worsens. Section 20 settlements are generally used when there is a dispute about whether the injury was work-related or when a claim is denied.

Section 22 (Order Approving Settlement)

This settlement pays benefits based on a disability rating over a set period (weekly). Importantly, it allows for future medical treatment and even the possibility of reopening the case within two years if your condition worsens. This is usually the safer option for workers with permanent injuries.

Choosing the right path depends on your injury, future medical needs, and financial goals. Always review settlement offers with a qualified attorney before signing.

Your Rights as a New Jersey Worker

If you’ve been injured at work, you’re not powerless. Workers in New Jersey are entitled to the following rights:

• Timely medical treatment
• Wage replacement if you can’t work
• Disability payments for permanent injuries
• Right to return to work, if medically cleared
• Protection from retaliation, including demotion or termination
• Right to appeal claim denials or disputed benefits

Even if your employer disagrees with your claim, you still have options through the Division of Workers’ Compensation. You can also file complaints with the Equal Employment Opportunity Commission (EEOC) or pursue ADA protections if you've been wrongfully dismissed due to a work-related disability.

When to Contact a New Jersey Workers’ Compensation Attorney

Many workers try to go through the process alone, only to find themselves underpaid, ignored, or denied altogether. Hiring an attorney can make a dramatic difference, especially in the following situations:

• Your employer denies the claim.
• Your benefits are delayed, reduced, or cut off.
• The insurance doctor declares MMI too early.
• You're being pressured into accepting a low settlement.
• Your condition has worsened and you need more care.
• You're being retaliated against for filing a claim.
• You’re considering a third-party lawsuit.

An attorney can gather medical evidence, negotiate on your behalf, and file the paperwork correctly to avoid costly delays. According to multiple studies, workers represented by attorneys tend to receive significantly higher settlements compared to those who go it alone.

Take Control of Your Recovery

Work injuries can turn your life upside down. Between doctor’s appointments, missed paychecks, and uncertainty about your job, it’s easy to feel like you’re falling behind. But the New Jersey Workers’ Compensation system exists to support you—you just have to know how to use it.

Whether you’re dealing with a sudden workplace accident or an illness that developed over time, knowing your rights is the first step toward healing.

Call a New Jersey Workers’ Compensation Lawyer for Help with Your Claim

Putting in an honest day’s work shouldn’t result in your life being turned upside down. Yet too many New Jersey workers injured on the job are left juggling pain, lost income, medical bills, and a system that feels anything but supportive. 

At Reinartz Law Firm, we know how hard it is to move forward when the ground keeps shifting beneath you. That’s why we don’t just file paperwork—we take on the stress, the insurance companies, and the legal pursuit of the benefits you need, so you can focus on healing and getting your life back on track.

We’ve stood beside workers across New Jersey, and we’ll stand beside you too, fighting for every dollar, every benefit, and every bit of peace of mind you deserve.

We also know that money may be tight after you’ve been out of work, which is one of the reasons why our New Jersey workers’ compensation lawyers work on a contingency fee basis. You pay us nothing for our services unless we successfully secure your benefits.

Don’t risk being denied the treatment or wage support you’re entitled to. Call Reinartz Law Firm today at (201) 289-8614 or online to schedule a free consultation. We serve workers across Hackensack, Bergen County, and throughout New Jersey.