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How New Jersey Workers’ Compensation Works

how workers comp worksWhen work injuries occur, injured employees are entitled to workers’ compensation insurance benefits. This type of insurance provides coverage for medical treatment, wage loss and permanency for injuries sustained in the course of work. Workers’ compensation is a mandatory, state-regulated form of insurance that is designed to protect employees and employers alike.

Workers’ compensation works like any other insurance. Employers pay a premium to an insurance company in exchange for coverage, and when an employee is injured the insurance company pays out benefits. While workers’ compensation insurance is sold by numerous private carriers, the government regulates certain aspects of the insurance, including the amount of benefits that are paid to injured workers.

Many New Jersey residents see their workers’ compensation claims denied or compensated at a lower rate than expected. The appeals process can be burdensome or confusing process.

Pre-Set Benefit Amounts

In New Jersey, there are pre-set amounts that are allowed for workers’ compensation benefits. For example, the current base rate for weekly indemnity benefits to injured workers is set at a minimum of $225 per week, and a maximum of $843 per week. This means that all workers’ compensation weekly indemnity benefits must fall within that range, no matter who provides the insurance. Thus, even if an injured injured worker makes less in weekly wages than the state minimum, the worker is still entitled to the state mandated minimum.

Workers’ Compensation Payouts

While certain workers’ compensation payouts are state regulated, the cost of individual workers’ compensation insurance plans vary based on the employer and its business. Certain types of jobs and businesses are more dangerous than others. Employers whose employees are more likely to sustain work-related injuries will pay higher premiums than employers whose employees perform lower risk jobs. However, regardless of the risk associated with a particular job, employees of all kinds can and do sustain injuries while they are at work, and workers’ compensation insurance exists to provide them benefits.

It is important that employers carry an appropriate workers’ compensation insurance plan in order to protect themselves and their employees. Indeed, uninsured employers do not get off easy when an employee sustains a work injury. These uninsured employers can be subject to heavy fines and penalties from the state.

If you have been injured at work and have questions about workers’ compensation benefits and legal rights, contact an experienced attorney to review your case. Call the Reinartz Law Firm or contact us online for a free and confidential consultation today.