What happens if I recover funds from a third party as a result of my work-related injury?

Under the New Jersey Workers’ Compensation Law, the employer and/or their insurance company is entitled to receive a credit for funds recovered from a third party that caused a work-related injury. The purpose of the provision is to prevent plaintiffs from receiving a duplication of benefits for the same injury or disability.

When the gross third-party settlement amount is the same as or more than the total award of compensation benefits, the amount of the credit is usually two-thirds of the amount payable by or on behalf of the employer minus $750. When the gross third-party settlement amount is less than the total award of compensation benefits, the credit is usually two-thirds of the gross third-party settlement amount minus $750.

In the event benefits have not been paid, the amount indebted to you by or on behalf of the employer will be decreased by the credit amounts.

Other Frequently Asked Questions:

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• What is the difference between a trial jury and a grand jury?
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