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Understanding the Conclusion of Temporary Workers' Compensation Benefits in New Jersey


Workers' compensation serves as a crucial safety net for employees who suffer injuries or illnesses while performing their job duties. In the state of New Jersey, temporary benefits are a vital component of workers' compensation, providing financial support to injured workers during their recovery period. However, it is essential to comprehend when these temporary benefits come to an end, as it marks a transition in the compensation process.

I. Initiation of Temporary Benefits to Cover Partial Lost Wages/Medical Expenses:

Temporary workers' compensation benefits are typically initiated when an employee sustains a work-related injury or illness. These benefits are designed to cover medical expenses and provide a partial replacement of lost wages during the period of disability. The initiation of temporary benefits underscores the commitment to support the injured worker throughout their recovery.

II. Medical Improvement and Maximum Medical Improvement (MMI):

Temporary benefits are expected to cease when the injured employee reaches Maximum Medical Improvement (MMI). MMI is a critical point in the recovery process, indicating that the injured worker's medical condition has stabilized, and further significant improvement is unlikely. At this stage, the focus shifts from temporary benefits to evaluating any potential permanent impairment.

III. Transition to Permanent Benefits:

Once an injured worker reaches MMI, the workers' compensation process may transition from temporary benefits to permanent benefits. Permanent benefits can include compensation for permanent disability, disfigurement, or loss of function. The determination of permanent benefits is often based on medical evaluations and assessments of the impact of the injury on the individual's ability to work.

IV. Resolution of the Claim through Settlement or Trial in Workers Compensation Court:

The conclusion of temporary benefits may coincide with the resolution of the workers' compensation claim. This resolution can occur through various means, including a settlement agreement or a formal determination by the workers' compensation court. The resolution of the claim marks the conclusion of the temporary benefits phase and sets the stage for any ongoing or future compensation related to permanent disability.

V. Return to Work or Vocational Rehabilitation:

In some cases, the end of temporary benefits aligns with the injured worker's return to the workforce. Employers may facilitate this process by offering suitable accommodations or engaging in vocational rehabilitation programs to help the employee transition back into the job market. The return to work represents a positive outcome, signaling the successful recovery and reintegration of the injured worker.

Certainly, for a comprehensive overview, it's essential to refer to the specific statutes governing workers' compensation in New Jersey. The relevant statutes can be found in Title 34 of the New Jersey Statutes, which specifically addresses labor and workers' compensation. Below are some key sections that pertain to the termination of temporary benefits:

1. N.J.S.A. 34:15-12 – “When personal injury is caused to an employee by accident arising out of and in the course of his employment, of which the actual or lawfully imputed negligence of the employer is the natural and proximate cause, he shall receive compensation therefor from his employer, provided the employee was himself not willfully negligent at the time of receiving such injury, and the question of whether the employee was willfully negligent shall be one of fact to be submitted to the jury, subject to the usual superintending powers of a court to set aside a verdict rendered contrary to the evidence.”

2. N.J.S.A. 34:15-39.2 – “As an alternative to any other sanctions herein or otherwise provided by law, the Commissioner of Labor and Industry may impose a penalty not exceeding $1,000.00 for any violation of this act. He may proceed in a summary manner for the recovery of such penalty, for the use of the State in any court of competent jurisdiction.”

3. N.J.S.A. 34:15-27 – “An agreement for compensation may be modified at any time by a subsequent agreement. Upon the application of any party, a formal award, determination, judgment, or order approving settlement may be reviewed within two years from the date when the injured person last received a payment on the ground that the incapacity of the injured employee has subsequently increased. If a party entitled to a review under this section shall become mentally incapacitated within the two-year period, the mental incapacity shall constitute grounds for tolling the unexpired balance of the two-year period, which shall only begin to run again after the party returns to mental capacity. An award, determination, judgment, or order approving settlement may be reviewed at any time on the ground that the disability has diminished. In such case, the provisions of R.S. 34:15-19 with reference to medical examination shall apply.”

4. N.J.S.A. 34:15-20 – “In case of a dispute over or failure to agree upon a claim for compensation between employer and employee, or the dependents of the employee, either party may submit the claim, both as to the questions of fact, the nature and effect of the injuries, and the amount of compensation therefor according to the schedule herein provided, to the Division of Workers' Compensation, as prescribed in article 4 of this chapter (section 34:15-49 et seq.). After a petition for compensation or dependency claims has been filed, seeking compensation by reason of accident, injury or occupational disease of any employee, and when the petitioner is represented by an attorney of the State of New Jersey, and when it shall appear that the issue or issues involve the question of jurisdiction, liability, causal relationship or dependency of the petitioner under this chapter, and the petitioner and the respondent are desirous of entering into a lump-sum settlement of the controversy, a judge of compensation may with the consent of the parties, after considering the testimony of the petitioner and other witnesses, together with any stipulation of the parties, and after such judge of compensation has determined that such settlement is fair and just under all the circumstances, enter "an order approving settlement." Such settlement, when so approved, notwithstanding any other provisions of this chapter, shall have the force and effect of a dismissal of the claim petition and shall be final and conclusive upon the employee and the employee's dependents, and shall be a complete surrender of any right to compensation or other benefits arising out of such claim under the statute. Any payments made under this section shall be recognized as payments of workers' compensation benefits for insurance rating purposes only.”

It's important to note that legal language can be complex, and interpretations may vary. Consulting with legal professionals specializing in workers' compensation law in New Jersey is advisable for specific and up-to-date guidance. They can provide detailed insights and ensure accurate application of the statutes in individual cases.

Conclusion- Understanding When Temporary Benefits End:

Understanding when temporary workers' compensation benefits end in New Jersey is crucial for both employers and employees navigating the complexities of the workers' compensation system. It involves recognizing the stages of the recovery process, such as reaching MMI, transitioning to permanent benefits, and the resolution of the claim. By comprehending these key milestones, stakeholders can better navigate the workers' compensation landscape and ensure a fair and just outcome for all parties involved.

Speak to One of Our Workers Compensation New Jersey Attorneys:

Subsequent employer liability is an essential aspect of New Jersey’s workers' compensation system, ensuring that workers who sustain injuries or illnesses while working for a subsequent employer receive the compensation they deserve. If you are an employee who has experienced a worsening of pre-existing conditions while working for a subsequent employer, consulting with an experienced workers’ compensation attorney can provide the clarity and guidance needed to navigate this intricate legal territory. Please contact the Scura Law Firm for an initial consultation on the phone; in order to discuss your case with an attorney and schedule an immediate office appointment.

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