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Newsletter -
Summer 2007
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In the beginning of this year the State Legislature was busy fine tunning the laws that apply to New Jersey workers compensation. The first and most significant law appears on its face to have nothing to do with workers compensation, as it deals with same-sex civil unions. N.J.S.A. 37:1-28 et seq. permits legally sanctioned civil unions by same-sex couples. However, in a recent conversation the Director of Workers Compensation, the Honorable Peter Calderone, advised that he interprets the New Jersey Workers’ Compensation Act with respect to dependency to include “legally sanctioned civil unions” and accordingly, would find that a same-sex partner would be entitled to dependency benefits under the Workers’ Compensation Act.
N.J.S.A. 37:1-28 et seq. had an effective date of February 19, 2007. We have all seen the rush to the courthouse highlighted in the news on that date. It is just a matter of time before we see the first dependency claim filed by a legally sanctioned civil union. New Jersey in general, and New Jersey Workers Compensation in particular, do not recognize “common law marriage”. To be compensable, a dependency claim filed by a same sex partner must be from a “legally sanctioned civil union”.
On another front, the Legislature as shortened the time within which workers compensation awards must be paid. The time for payment of awards has historically been 90 days. N.J.S.A 34:15-28 has now been amended to require awards to be paid within 60 days. The Director has indicated that the shortened time period will be strictly enforced.
A third notable legislative development involves reimbursement of costs involved in prosecuting a successful third party claim. An injured worker is typically allowed to pursue a civil claim against a tortfeasor in addition to a workers compensation claim. If successful in the civil action, the injured worker must reimburse the workers compensation carrier on the theory that the law abhors a double recovery. The schedule for reimbursement is set forth in N.J.S.A. 34:15-40, and includes a provision for reimbursing the employer or insurance carrier for the medical expenses incurred and compensation payments paid to the injured worker less expenses of suit and attorney’s fees. The “expenses of suit” have historically been limited to $200. This limit has been increased to $750 for expenses from the third party lawsuit recognizing the fact that filing fees, photocopy costs and other expenses have risen over time.
While none of the foregoing may constitute a particularly drastic change, employers and insurance carriers should take note and inform the individuals responsible for setting rates, paying judgments and negotiating liens so as not to run afoul of the amendments.
E. Richard Boylan, Esq.
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