Suing Over a Work Injury in New Jersey

Generally no. Coming under the workers' compensation article is a surrender by employer and employee of any other method, form or amount of compensation, binding the employee and the employee's family. If an injury or death is compensable, no person in the same employ (including the employer) is liable at common law or otherwise, except for an 'intentional wrong.'

Yes. A right to workers' compensation does not bar a suit against a liable third person. If the worker recovers from the third party, the employer or insurer is reimbursed for medical expenses and compensation paid (less the worker's suit expenses up to $750 and an attorney fee up to 33 1/3% of the reimbursed amount), and if the recovery equals or exceeds the compensation liability the employer is released; the third party, once notified of the compensation claim, must ask the employer what has been paid before paying the worker. If the worker does not settle or sue within 1 year of the accident, the employer or insurer may do so 10 days after written demand on the worker, paying any excess recovery to the worker.

An employer that fails to carry required coverage commits a disorderly persons offense (a fourth-degree crime if knowing) and is subject to a stop-work order; active corporate officers are liable for the failure, and a contractor is liable for compensation owed to employees of an uninsured subcontractor. The worker files a claim petition in the Division of Workers' Compensation; if the uninsured employer does not pay the award within 45 days and does not post security after demand, the award (reasonable medical expenses and temporary disability) is payable from the state's Uninsured Employer's Fund, unless an appeal is pending. Fund payments do not include amounts outside the award, extra compensation or death benefits.