In a New Jersey workers’ compensation case, “permanency” refers to the final phase of a claim where an injured worker is evaluated for a financial monetary award due to a lasting, permanent loss of bodily function. Unlike other states, a New Jersey permanency award is not exclusively tied to your ability to work. You can receive a permanency award even if you have returned to your exact same job, provided that the injury has permanently impacted your ordinary pursuits of life or hobbies.
The Legal Standard for Permanency
- Objective Medical Evidence: There must be clear, demonstrable medical proof (such as MRIs, X-rays, CT scans, or surgical records) showing a permanent functional restriction of a body part, member, or organ. Subjective complaints of pain alone are not enough.
- Material Impact: The permanent impairment must cause a “lessening to a material degree” of the employee’s working ability OR a substantial, negative impact on their non-work life and daily activities (e.g., restricted lifestyle, inability to manage household chores, or ended hobbies).
- Statute of Limitations: A formal Claim Petition for permanency benefits must also be filed within two years of the accident date or the last payment of authorized medical care.
How New Jersey Calculates Permanency Awards
New Jersey utilizes an impairment-based statutory chart updated annually by the Department of Labor and Workforce Development. Awards are paid out in weekly installments rather than a single pain-and-suffering lump sum, calculated using three variables:
- The Injury Classification: Divided into “Scheduled” injuries (specific body parts like arms, legs, fingers, or eyes) and “Unscheduled” injuries (the spine, brain, or internal organs).
- Percentage of Disability: Both the worker’s attorney and the insurance company will hire independent medical experts to evaluate the worker and assign a percentage of permanent functional loss. The attorneys or a Judge of Compensation then negotiate or rule on a compromise percentage.
- Wages: The final monetary value translates to a set number of weeks of pay at 70% of the worker’s average weekly wage, subject to statutory maximum and minimum caps.
The Right to Reopen
Receiving a permanency award does not mean your medical rights are closed forever. In New Jersey, you retain the legal right to file a “reopener petition” within two years of your last permanency payment if your condition significantly worsens and requires additional medical treatment or a higher degree of permanent disability compensation.
The Two-Year Deadline
To legally reopen your case, you must file a formal “Application for Review and Modification” within two years of your last benefits check or last authorized medical treatment, whichever comes later. This deadline is strictly enforced by the state; missing it means your claim is permanently closed.
Eligibility by Settlement Type
Not all workers’ compensation settlements permit a modification request. Your original resolution documents will specify which type you received:
- Section 22 Award / Order Approving Settlements: These resolutions can be reopened. If your case concluded with a percentage of permanent partial disability paid out over time, the law protects your right to seek further care if your health changes.
- Section 20 Settlement: This resolution cannot be reopened under any normal circumstances. A Section 20 settlement is a “full and final” lump-sum payout used when an employer disputes that the injury was work-related.
- An official medical opinion or operative report from a doctor linking the degradation directly to the original workplace injury.
Benefits You Can Recover
If your reopener petition is approved, you may be granted:
- Additional authorized medical care (e.g., surgeries, physical therapy, or medication).
- An increase in permanent disability benefits to match your updated level of impairment.
- Temporary total disability benefits if the worsening condition forces you out of work again during recovery.
If you are unsure which paperwork closed your case, contact our experienced Worker’s Compensation Attorneys to discuss your job-related injury. To help you clarify your options, could please let us know:
- How long ago did you receive your last payment or medical treatment?
- Do you know if your case was settled via a Section 20 or a Section 22 agreement?
If you sustained a work-related injury, do not hesitate to contact the attorneys at Scura, Wigfield, Heyer, Cammarota & Gonzalez, LLP at (973) 696-8391.
