A workplace injury does not always involve just you and your employer. When a party outside your employment relationship plays a role in causing your harm, you may have more than one path to compensation under New Jersey law.
Combining workers’ comp with a civil lawsuit
New Jersey makes uses of a no-fault workers’ compensation system, which means you do not have to prove your employer was negligent to receive benefits. These benefits typically cover medical expenses and a portion of your lost wages, but they do not account for non-economic losses or full wage replacement.
A third-party claim is a separate civil lawsuit filed against someone other than your employer or a coworker. This allows you to seek damages that workers’ comp does not provide, including compensation for emotional distress and diminished quality of life.
State law permits injured workers to pursue both forms of recovery at the same time. The two claims operate through different legal channels—workers’ comp through the Division of Workers’ Compensation and a third-party lawsuit through the civil court system.
Identifying eligible third parties
Workers’ comp shields your employer from most personal injury lawsuits, but that protection may not extend to the following:
- Manufacturers of defective tools, machinery or safety equipment used on the job
- Property owners who failed to maintain safe conditions at a worksite you were visiting
- Drivers who caused a motor vehicle accident while you were working
- Subcontractors or independent contractors operating on a shared worksite
Establishing third-party liability typically requires showing that the outside party was negligent, meaning they breached a duty of care that directly caused your harm, or, in cases involving defective equipment, that the product was unreasonably dangerous and caused your injury.
Accounting for the lien on your settlement
When you receive workers’ comp benefits and later recover money through a third-party lawsuit, your employer’s insurance carrier typically has a right to reimbursement. This is known as a lien, and it exists to prevent what the law considers a double recovery for the same injury.
In New Jersey, the lien allows the carrier to recoup benefits it already paid from the proceeds of your third-party settlement or verdict. The lien amount is usually reduced by a proportional share of your legal costs, which reflects the fact that the carrier benefited from your pursuit of the third-party claim without bearing those expenses directly.
Meeting the filing deadlines for both claims
You must file a workers’ comp claim within two years of the injury or the last payment of benefits. You have the same amount of time to file a personal injury lawsuit against a third party. But if they are a public or government entity, you must file a formal notice within just 90 days of the injury.
Missing either deadline could result in losing the right to pursue that particular claim regardless of the strength of your case. Because these two involve different procedural requirements and forums, reaching out to an attorney can help coordinate your legal strategy and maximize your overall compensation.