How Third-Party Claims Can Supplement Your NJ Workers’ Compensation Benefits

When you’re injured on the job in New Jersey, workers’ compensation typically serves as your primary source of financial support. However, workers’ compensation benefits can be limited and may not cover all aspects of your injury. What many injured workers don’t realize is that they may have an additional avenue for compensation through third-party claims. If your injury was caused by someone other than your employer, pursuing a third-party claim can help you seek damages beyond what workers’ compensation provides.

In this blog post, we’ll dive into the ins and outs of third-party claims in New Jersey, how they work, and why they can be an essential part of helping you pursue the compensation you may be entitled to after a workplace injury.

What Are Third-Party Claims?

A third-party claim is a legal action you can take against an individual or entity other than your employer who may be responsible for your workplace injury. While workers’ compensation law in New Jersey prevents you from suing your employer for negligence, it does not prohibit lawsuits against third parties. These claims are particularly useful in situations where the negligence of someone outside of your employment contributed to your accident and injuries. For example:

If you were injured by a defective piece of machinery, you might have a claim against the manufacturer of that equipment.
If you were hurt in a car accident while performing work-related duties, you could file a lawsuit against the at-fault driver.
If a contractor on your job site failed to follow safety protocols, resulting in your injury, you could pursue a claim against the contractor or their employer.

These third-party claims could result in compensation for damages that workers’ compensation does not typically cover, such as pain and suffering, emotional distress, or loss of future earnings.

Differences Between Workers’ Compensation and Third-Party Claims

Before diving into the advantages of third-party claims, it’s important to understand the differences between workers’ compensation benefits and compensation obtained through a third-party lawsuit.

NJ Workers’ Compensation Benefits

New Jersey’s workers’ compensation system is designed to cover an employee’s medical expenses, partial lost wages, and permanent disability resulting from a workplace injury. These benefits are provided regardless of who was at fault for the accident. However, workers’ compensation does not compensate for pain and suffering or provide punitive damages for gross negligence.

Third-Party Claims in New Jersey

Third-party lawsuits allow the injured worker to pursue additional damages, such as:

Pain and suffering
Emotional distress
Full lost wages (workers’ compensation only covers a percentage of them)
Loss of future earnings if your injury prevents you from returning to work at full capacity
Punitive damages if the third party’s actions were particularly egregious

While workers’ compensation is a no-fault system, a third-party claim will require proving that the third party’s negligence or misconduct directly caused your injury. This can involve gathering evidence, witness testimony, and expert opinions to build a strong case.

Common Situations Leading to Third-Party Claims

Several scenarios could give rise to a third-party claim in New Jersey. Here are some of the most common:

Motor Vehicle Accidents: If you drive as part of your job, you are at risk of being involved in a motor vehicle accident while on duty. If another driver is at fault for the accident, you may be able to file a claim against them for damages.
Defective Products: Equipment and machinery malfunctions are a leading cause of workplace injuries. If a defective product contributed to your injuries, you may have a product liability claim against the manufacturer or distributor of the equipment.
Construction Accidents: Construction sites often involve multiple contractors and third-party vendors. If a subcontractor or outside party fails to follow safety procedures or causes an accident, they may be liable for your injuries.
Premises Liability: If you’re injured while working on property owned by someone other than your employer, you might have a premises liability claim against the property owner. For instance, if you’re making a delivery and slip on an unmarked wet floor, the property owner may be liable.

How Third-Party Claims Impact Workers’ Compensation Benefits

It’s essential to note that while you can pursue both a workers’ compensation claim and a third-party lawsuit, these claims are interconnected. Specifically, New Jersey law allows employers or their insurance companies to seek reimbursement (also known as subrogation) for the benefits they paid you if you seek compensation through a third-party lawsuit.

Here’s how it works: If you receive workers’ compensation benefits and later win a settlement or judgment in a third-party lawsuit, your employer’s workers’ compensation insurer may have the right to be reimbursed for the benefits they provided, such as medical bills and lost wages. This prevents you from collecting twice for the same expenses. However, any compensation you receive from a third-party claim for pain and suffering or other damages that are not covered by workers’ compensation is yours to keep.

Benefits of Pursuing a Third-Party Claim

The primary benefit of pursuing a third-party claim is that it can significantly increase the total compensation you receive after a workplace injury. Workers’ compensation may not fully cover all the costs associated with a severe injury, especially if you suffer long-term effects or are permanently disabled. By pursuing a third-party lawsuit, you can seek compensation for:

Pain and Suffering: Unlike workers’ compensation, which only covers economic damages, a third-party lawsuit allows you to seek compensation for the physical pain and emotional distress caused by your injury.
Lost Wages: Workers’ compensation only provides partial wage replacement (typically 70% of your weekly wages), while a third-party claim can help you recover the full amount of your lost income.
Punitive Damages: In cases of gross negligence, reckless behavior, or intentional misconduct, you may be entitled to punitive damages, which are intended to punish the wrongdoer and deter similar behavior in the future.

How Drazin & Warshaw Can Help

At Drazin & Warshaw, we understand the emotional and financial toll that workplace injuries can take on individuals and their families. Navigating both workers’ compensation and third-party claims can be overwhelming, but you don’t have to go through it alone. Our experienced team is committed to investigating every possible avenue to help you seek the compensation you need for medical bills, lost wages, and long-term care.

We take the time to listen to your story, understand your unique situation, and build a strategy that focuses on your recovery. Whether you’re dealing with a workplace injury caused by defective equipment, a car accident, or a negligent contractor, we’ll work tirelessly to hold all responsible parties accountable. We know that every case is different, and we’re here to provide personalized support tailored to your needs.

Contact Drazin & Warshaw Today to Discuss Your Workers’ Compensation and Third-Party Claim

From the moment you contact us, we’ll guide you through the legal process with compassion and professionalism, ensuring that your rights are protected at every stage. Our goal is to relieve the burden of legal complexities so you can focus on healing while we handle the rest.

If you’ve been injured on the job, reach out to Drazin & Warshaw today. We’re ready to help you explore your options and pursue the compensation you need to move forward.
Disclaimer: The information provided is not legal advice and does not establish an attorney-client relationship.