November 11, 2013

The New Jersey Division of Workers' Compensation announced that the maximum weekly indemnity benefit for injured workers will be $843 in 2014, and the minimum weekly benefit will be $225.  This is an increase from $826 maximum weekly indemnity benefit and $220 minimum weekly benefit in 2013.

New Jersey law requires that workers on both temporary total disability and permanent total disability be paid 70% of their pre-injury wages capped at 75% of the statewide average weekly wage. State law sets the minimum weekly benefit at 20% of the statewide average weekly wage.

What this means for many New Jersey employers is that more employees with higher salaries can now afford to file a workers compensation claim and extend their lost time. More workers compensation claims are filed by more employees and these employees stay home for a longer period of time while they receive 70% of their weekly wages tax-free. As for the employers, they are left to pick up the tab on higher experience modifications and ultimately higher workers compensation insurance premiums.

New Jersey employers can reduce their current and prior years’ workers compensation premiums through workers compensation premium recovery.  This service offers to knock down experience modifications on a no-recovery no-fee basis. Employers receive refunds on old, useless policies and see reduced premiums on future years as well.