All companies doing business in New Jersey must either purchase workers' compensation insurance for employees or receive state approval for self-insurance. In cases of work-related injuries, workers' compensation pays for medical treatment, whether or not the injured employee has traditional health-care insurance. Only actual employees are covered by workers' compensation, not freelancers or independent contractors. In New Jersey, these benefits are not taxed by the state.
Medical Benefits
Under the state's worker's compensation law, all medically needed and "reasonable" treatments, including hospitalization and medication, must be paid by either the insurance carrier contracted by the employer or the self-insured employer. The employer may choose the doctor treating any injuries relating to work. Injured employees may only choose the physician in cases of emergency or if the employer refuses provision of appropriate medical treatment. In emergencies, the injured worker must notify his employer as quickly as possible regarding treatment.
Disability Benefits
Workers unable to work due to injury for more than seven days may receive temporary total disability benefits. Rates for these benefits peak at 70 percent of the worker's average weekly pay, but cannot exceed 75 percent of the statewide average weekly wage. Only those employees under the care of a licensed health care professional and incapable of returning to work may receive these benefits. Once the employee returns to work, benefits cease.
Permanent Benefits
If the employee reaches "maximum medical improvement" and their condition is not expected to improve, the worker may be eligible for permanent benefits. These are divided into permanent partial and permanent total disability benefits. Eligibility for partial permanent disability benefits take into consideration the type of loss the worker experiences, including "arms, hands, fingers, legs, feet, toes, eyes, ears or teeth." Other losses include permanent injury to a bodily system certified by a physician. Such benefits are paid weekly.
Workers permanently and totally disabled must be unable to return to any type of employment. Such benefits are paid for 450 weeks, or roughly eight and a half years. After that time, the injured employee must prove that working for wages is still impossible to continue receiving benefits.
A presumption of permanent total disability is made when employees lose the use of both arms, legs, eyes, feet or hands, or a combination of two such members of the body.
Death Benefits
In 2011, the family or estate of workers killed on the job or dying from a work-related injury must have funeral expenses up to $3,500 paid by the employer or its insurance company. Children and the surviving spouse of the deceased worker may also be eligible for death benefits if they shared a home with the worker at the time of death. Those not sharing a home with the decedent must prove dependency on the dead employee's income. The maximum weekly benefit for dependents is 70 percent of the decedent's weekly wages with an annual limit on compensation established by the New Jersey Commissioner of Labor.
