New Jersey Workers' Compensation Laws

Most people manage to work their entire lives without suffering a workplace injury, but others aren’t so fortunate. The majority of workplace injuries are minor, with injured workers missing only a few days of work. However, serious injuries do occur and can require extensive medical treatment. In these situations, the employee can file a workers’ compensation claim.

Workers’ compensation provides employees with medical care and weekly replacement wages. This lets the employee focus on getting better instead of worrying about whether their job is safe.

If your company’s workers’ compensation insurance carrier approves your claim, it will pay your medical expenses and your replacement wages. This will continue until you return to work or reach “maximum medical improvement.”

This article examines and explains workers’ compensation laws in the state of New Jersey. It also discusses the benefits you’ll receive and what to expect when your workers’ comp claim ends.

If you’ve suffered a workplace accident or occupational disease, consider contacting an experienced New Jersey workers’ compensation lawyer. They’ll ensure that the insurance carrier handles your claim properly and fight to get you the benefits you deserve.

Who Is Eligible for Workers’ Compensation in New Jersey?

According to the New Jersey Division of Workers’ Compensation, almost all workers in the Garden State are eligible for workers’ comp benefits. New Jersey workers’ compensation laws require that employers with one or more employees maintain workers’ compensation coverage.

This requirement under the New Jersey Workers’ Compensation Act applies to companies with full-time, part-time, and seasonal workers. Some categories of workers aren’t eligible for workers’ comp benefits. Those who fall into the following categories don’t qualify for workers’ compensation in New Jersey:

• Sole proprietors
• Members of a partnership
• Federal employees
• Railroad employees
• Domestic workers
• Most agricultural workers
• Independent contractors/consultants

If a business owner doesn’t maintain the required insurance coverage, they’ll face civil fines and penalties, as well as facing the risk of being shut down by the New Jersey Department of Labor and Workforce Development.

When To File a Workers’ Compensation Claim

Workers’ compensation claims are intended for minor work injuries. The system protects workers and ensures the employer’s insurance company covers medical bills and reimburses lost wages. To qualify for workers’ compensation benefits, you must prove that your injuries are work-related. If your accident occurred at work and on company property, the insurance carrier will likely approve your workers’ compensation claim.

Workers’ comp benefits are only intended for those injured while working. Other factors may also cause the insurance company to deny a claim. These include:

• You were injured on personal time
• You were under the influence of drugs or alcohol at the time of your injury or accident
• You were commuting to or from work (the “going and coming” exception)
• You have a pre-existing condition
• You were not on company time when your accident occurred
• Witnesses will report that you were not on company property or engaged in company work at the time of your injury

If you were working within the scope of your employment when you suffered your workplace injury, you have the right to file a workers’ compensation claim. This includes if you were on company property when you got hurt.

Not sure if you qualify for a claim? Reach out to a New Jersey workers’ comp attorney. They’ll review your case and advise you how best to proceed.

Filing a Workers’ Compensation Claim in New Jersey

To receive workers’ comp benefits, you must file your claim properly and on time. If you don’t, your claim may be denied. This could mean you have to pay your own medical bills.

The workers’ compensation claim process in New Jersey is as follows:

• Seek immediate medical attention for any injuries you suffer during a workplace accident. If your employer doesn’t have on-site medical personnel, receive care from either EMTs, an ER, or an urgent care facility. If you receive outside care, let the physician know the injury is work-related.
• After receiving emergency medical care, report your workplace injury or illness to your manager or Human Resources department. This must be done within 14 calendar days of your accident to qualify for workers’ comp benefits. In some cases, a claimant can report injuries within 90 days and still receive benefits. Regardless, it’s better to report it within the 14-day period.
• After you report your accident to your employer, they’ll file a First Report of Injury electronically within 21 days of receiving notice of the injury. They’re required to provide you with a copy of the form.
• Your employer may choose to deny your workers’ compensation claim. If so, it must issue a “Notice of Denial” to you within 30 days of receiving your claim.
• If your employer denies your claim, you still have another option. File a request for benefits with the New Jersey Workers’ Comp Commission. You have two years from the date of your injury (or the date your employer files its “First Notice of Injury” form) to file a petition with the New Jersey Division of Workers’ Compensation.

The claims process can be overwhelming, especially if you’re dealing with a serious injury or illness. Ideally, your employer’s New Jersey workers’ compensation insurance will pay your claim.

If your employer was reckless or intentionally caused your injuries, you may be able to file a claim under their employers’ liability insurance policy. An experienced New Jersey personal injury attorney can help you with either process.

What Benefits Are Available Under Workers’ Compensation in New Jersey?

If the insurance company approves your workers’ comp claim, you will receive several types of benefits. Your employer’s insurance carrier will cover your medical care. As long as the medical treatment is directly related to your workplace accident and is reasonable and necessary, the insurance company shouldn’t object to paying the medical costs.

In addition to medical care, you will also receive wage replacement benefits. If you miss more than three days of work, you can collect compensation for your lost wages. This amounts to 70% of your average weekly wages. You may also be entitled to disability benefits, should your workplace accident leave you partially or totally disabled.

Let’s take a closer look at the benefits you may be entitled to.

Medical Benefits

The primary reason employers carry workers’ comp insurance is to cover injured employees’ medical bills. As long as your medical treatment is reasonable and necessary, workers’ comp should cover it. This coverage will continue until you return to work or reach “maximum medical improvement.”

Some of the medical care covered by workers’ compensation includes:

• Emergency room visit
• Ambulance ride
• Hospitalization
• Prescription medications
• Physical therapy
• Vocational rehabilitation
• Chiropractic care (in some cases)
• Medical devices/medical equipment

If the insurance company refuses treatment or refuses to pay your medical bills, you may need to meet with a New Jersey workers’ comp lawyer.

Replacement Wages

Your living expenses won’t stop just because you suffered a workplace injury. Workers’ comp helps bridge the gap until you can return to work by covering a portion of your lost wages. The amount of your weekly benefits depends on your income. You’ll receive 70% of your average weekly wages (AWW).

To calculate your AWW, add your wages for the last 26 weeks and divide the total by 26. Multiply that amount by 0.70 to determine your weekly benefit rate.

New Jersey law caps the amount you can receive through workers’ comp each week. The maximum benefit rate for 2026 is $1,199 per week. Even if your weekly benefit rate would be much higher than $1,199, that is the most you can receive in any given week.

Death Benefits

Not everybody survives their workplace accident or occupational illness. If a loved one passes away as a result of a work-related injury, you may be eligible for death benefits through workers’ compensation.

In general, a decedent’s spouse and dependents may be entitled to the weekly benefits their loved one would have received had they survived. They can also receive reimbursement for burial and funeral expenses.

Who Decides When You Return to Work?

New Jersey employers must pay their employees weekly benefits and cover their medical care until they return. In most cases, the employee recovers enough to go back to work at some point. This is based on when the employee’s workers’ comp doctor believes the worker has reached maximum medical improvement (MMI).

MMI occurs when your workers’ compensation doctor determines that further treatment will not improve your condition. In other words, the doctor can do nothing further to improve your recovery.

If you disagree with your doctor’s assessment and don’t think you’re ready to go back to work, you can ask for a second opinion. Your attorney can arrange an Independent Medical Examination (IME). An IME allows another physician to review your case and determine your readiness to return to work. This second opinion may be at your own expense.

In some cases, the employee can never return to work, either full-time or part-time. Those who suffered serious injuries may be eligible for permanent disability benefits. If the medical provider determines that you are permanently disabled, these long-term benefits may become available.

What if You’re Permanently Disabled After Your Workplace Accident?

If you end up permanently disabled (partial or total) after your workplace accident, you may be entitled to significant compensation. It depends on the nature of your injury and which body part is involved.

New Jersey categorizes permanent disability awards based on the injured body part. Some body parts are worth more than others. For example, a foot injury is worth much less than a back or neck injury.

The best way to know how much your case may be worth is to review New Jersey’s Schedule of Disabilities. This chart spells out how much each body part is worth (in number of weeks).

Permanent Total Disability vs. Permanent Partial Disability

Whether you’re eligible for permanent disability benefits depends on the seriousness of your injuries. While you’re experiencing temporary total disability, you’ll receive your weekly replacement wages. Once your healthcare provider determines that you’ve reached MMI, they must also state whether you have a total or partial permanent disability.

If your doctor decides that you have suffered a 100% disability (as a whole or related to a specific body part), you’ll receive significant compensation. For example, if your doctor indicates that you have 100% permanent total disability with one of your legs, you will be entitled to 315 weeks’ worth of benefits.

Most workers’ compensation cases that include a permanent disability settle for a lump sum rather than the claimant collecting benefits for years on end. A New Jersey personal injury lawyer can negotiate a fair settlement that covers both your disability benefits and future medical bills. For permanent partial disability claim assessments, you’ll receive a portion of the disability benefits assigned to the injured body part.

What if the Insurance Company Denies Your Claim?

Insurance carriers approve most workers’ comp claims, but not all. If the insurance company denies your claim, you have the right to file an appeal.

Your claim may be denied for many reasons. These can be a technicality, a clerical error, or an omission, such as forgetting to include pay stubs to prove your average weekly wages. Other reasons why your claim may be denied include:

• You didn’t report your accident in a timely fashion
• Your employer doesn’t believe you got hurt on company time
• You refuse to see a company-approved doctor
• You had a pre-existing condition
• You have a history of filing workers’ compensation claims
• You were under the influence of drugs or alcohol at the time of your accident
• The company has classified you as an independent contractor, not an employee

If the insurance carrier denies your claim, you can file an appeal. The appeals process can be intimidating, and you only get one chance to get it right. If you haven’t already spoken with a New Jersey workers’ compensation attorney, this is a good time to do so.

The appeals process in New Jersey is rather formal. If you don’t follow the proper steps, the New Jersey Division of Workers’ Compensation Commission will deny your appeal, ending your opportunity to receive benefits.

Disclaimer: State laws are subject to change due to new legislation, higher court rulings, and other means. While we strive to provide the most current information, consult a New Jersey workers’ compensation attorney or conduct further legal research to verify your state laws.

Seek Legal Advice Regarding Your New Jersey Workers’ Compensation Claim

If you suffer an injury at work and aren’t sure how to file a workers’ compensation claim, contact a local workers’ comp attorney. The New Jersey workers’ compensation system and claims process can be complex and overwhelming, especially while you’re recovering from a work-related injury.

Workers’ comp exists to cover your expenses and lost wages after a work-related injury. An experienced New Jersey workers’ compensation attorney will review your claim and, if warranted, help you file an appeal. They will also fight to get you the benefits you deserve.