Workers’ Compensation vs Personal Injury Claims in New Jersey

When an accident occurs, whether on a construction site or in an office building, injured workers in New Jersey generally have two potential avenues for financial compensation: workers’ compensation and personal injury claims. While both options provide compensation for injuries, they are fundamentally different in terms of how they work, who could be determined at fault, and the compensation available. If you or a loved one has been injured while on the job, understanding the distinctions between these two types of claims will allow you to receive the compensation you’re entitled to. 

What’s the Difference Between Personal Injury Claims and Workers’ Compensation?

Workers’ compensation is a no-fault insurance system designed to provide benefits to employees who are injured or become ill due to their work. In New Jersey, employers are required by law to carry workers’ compensation insurance, which covers medical expenses, a portion of lost wages, and permanent disability benefits, regardless of who was at fault for the accident. 

On the other hand, workplace injury claims are fault-based legal actions filed against a third party, such as a negligent driver, property owner, product manufacturer, or even your employer. In a personal injury case, the injured party must prove that another party’s negligence caused their injuries. Compensation in personal injury claims includes medical expenses, lost wages, pain and suffering, and potentially punitive damages. 

Determining Fault and Liability in Workplace Claims 

In workers’ compensation cases, fault is not a factor. Even if an employee’s own mistake contributed to the accident, they are still eligible for benefits. This no-fault system makes it easier for workers to get compensation quickly but limits the types of damages they can recover. 

In contrast, personal injury claims require proving that another party was at fault for the accident. The injured worker must demonstrate that the third party’s negligence or intentional actions caused their injuries. This can involve gathering evidence, such as witness testimony, medical records, and expert reports, to establish liability. 

How Does the Compensation Between Workers’ Compensation and Personal Injury Differ? 

Workers’ compensation typically covers: 

• Medical expenses: full coverage for medical treatment related to the injury, including surgeries, medications, and physical therapy. 
• Temporary disability benefits: a portion of lost wages (generally 70% of your weekly wage) if you are unable to work due to the injury. 
• Permanent disability benefits: compensation for a permanent loss of function, which can be partial or total. 
• Death benefits: in the event of a fatal accident, workers’ compensation provides benefits to the surviving family members. 

However, workers’ compensation does not cover non-economic damages, such as pain and suffering or emotional distress. 

In a personal injury claim, the injured worker can seek compensation for: 

• Medical expenses: just like workers’ comp, but you can also claim future medical expenses. 
• Lost wages: including both past lost wages and future earning potential. 
• Pain and suffering: compensation for the physical pain and emotional trauma caused by the injury. 
• Punitive damages: in rare cases, if the responsible party acted recklessly or maliciously, punitive damages may be awarded to punish the wrongdoer. 

The Limitations of Workers’ Compensation 

While workers’ compensation provides a streamlined process for receiving benefits, it comes with several limitations: 

• No pain and suffering compensation: workers’ compensation only covers economic losses, leaving injured workers without compensation for the emotional and physical toll of their injuries. 
• Limited wage replacement: workers’ compensation generally only covers a portion of your lost wages, and there is a cap on the weekly benefit amount. 
• Limited death benefits: while death benefits are available to surviving family members, they are capped at a certain amount, which may not fully account for the financial loss of a loved one. 

Because of these limitations, injured workers sometimes seek additional compensation through a personal injury claim if their accident was caused by negligence. 

Can You File a Personal Injury Claim if You Collect Workers’ Compensation? 

In some cases, you may be able to file a personal injury claim while also receiving workers’ compensation benefits. If you are injured in a construction site accident due to a defective piece of equipment, you may be able to file a personal injury claim against the equipment manufacturer, while also collecting workers’ compensation from your employer. This is known as a third-party claim, and it allows injured workers to seek additional compensation beyond what workers’ compensation provides. 

How to Tell if You Have a Personal Injury Claim 

Determining whether you have a valid personal injury claim depends on several factors: 

• Was negligence involved? To succeed in a personal injury claim, you must be able to prove that the third party acted negligently or recklessly. This might include a subcontractor’s failure to follow safety protocols on a construction site or a defective tool or piece of machinery that caused your injury. 
• Is there evidence to support your claim? To strengthen your case, you’ll need to gather evidence that demonstrates how the third party was responsible for your injury. This can include accident reports, photos of the scene, witness statements, and expert testimony. 

Consulting with an experienced personal injury attorney can help you determine whether you have a valid claim and how to best pursue compensation for your injuries. 

Injured While at Work? Contact Our Team Today 

While workers’ compensation provides necessary benefits for injured workers, it has its limitations. If you’ve been catastrophically injured while at work, you may be entitled to additional compensation through a personal injury claim. At Eichen Crutchlow Zaslow, we work with our clients to help them get the compensation they deserve. We can make the determination if you have a viable personal injury claim and vigorously pursue those who caused your injury. If you or a loved one has been injured, get in touch with us today for a free case evaluation.