After reaching a New Jersey Workers’ Compensation settlement, the settlement type dictates the next steps and your potential future rights. There are two types both explained in greater detail below. Regardless, the compensation judge must approve all settlements. You likely won’t need to appear in court; instead, you’ll review and sign the paperwork, which your attorney will present for court approval.
Section 22 (order approving settlements) N.J.S.A. 34:15-22
- Settlement on a permanent disability rating pursuant to the workers’ compensation schedule of disabilities for the year of the injury. Disability payments will be received in installments based on the New Jersey’s schedule of benefits which generally begin to accrue from the last date of treatment or benefit paid.
- You do not give up your future rights to benefits. If your condition gets worse, you have the option of reopening the claim within 2 years of the last payment received from the settlement. Benefits may include medical treatment, temporary disability if unable to work due to the work injury and/or increased disability payments.
- 60% of the legal fees which are currently capped at 25% of the settlement or award will be the responsibility of the workers’ compensation insurance carrier which will also pay for half of your medical expert report fees. (ie: $20,000 settlement-$5,000 legal fees, $3,000 paid by insurance & $1,000 expert report-$500 paid by insurance=$16,500 net settlement.
- Workers’ compensation benefits, including settlements are generally tax free.
- Disability payments made in the settlement would be included in any liens the workers’ compensation carrier has placed on your third party personal injury case if you were injured by the negligence of another outside of your employment.
- Payments must be made within 60 days of Court’s approval of the workers’ compensation settlement but usually are received a lot sooner.
Section 20 (settlement and dismissal) N.J.S.A. 34:15-20
- Lump sum settlement where there is an ongoing dispute resulting in the claim being denied or part of the claim is in dispute. This is not an available option on all cases.
- No future benefits are available, and the case is permanently closed. There is no right to re-open regardless of the condition getting significantly worse.
- Typically, more money up front in exchange for waiving all rights to re-open the case.
- All legal fees and costs are your responsibility.
- Generally, no tax on section 20 workers’ compensation settlements.
- Lump sum settlements are not included in any liens on third party cases.
- Payments must be made within 60 days of the order being signed but usually are received a lot sooner.
Seek the Assistance of an Attorney Immediately After an Injury
Schedule an early meeting with a New Jersey Workers’ Compensation attorney to explore all of your options and secure the best workers’ compensation settlement. The attorney will ensure you report all injuries correctly and promptly receive all medical treatment and benefits under the Workers’ Compensation Act. They will expertly navigate the complexities of the workers’ compensation process for you.
Contact the New Jersey Workers’ Compensation Lawyers at the Law Offices of Michael S. Williams
If injured at the workplace contact a Workers’ Compensation lawyer at the Law Offices of Michael S. Williams. Call 732-351-2800 or reach out online to book a free consultation. Our offices are in Tinton Falls and New Brunswick, New Jersey. We serve clients in Monmouth and Middlesex Counties and throughout the state.
