If you have been injured at work and are in the midst of accepting a settlement agreement, you should first research the law or hire a lawyer to make sure you are getting a fair amount from your workers’ compensation settlement.
In New Jersey, there are two ways to settle a claim and how to structure your settlement. One way is a final lump sum payment [Section 20] and the other is an order-approving settlement [Section 22]. Either option has both pros and cons, as highlighted below:
Workers’ Comp Lawyers In Florham Park, NJ Explain The Pros And Cons Of Settling A Workers’ Compensation Claim in New Jersey
Final lump sum payment [Section 20]:
Lump Sum Settlement – a settlement under Section 20 is a lump sum full and final payment of your workers’ compensation claim. This means getting all of the compensation at once instead of receiving payments over time.
Under a lump sum settlement, there are a handful of features to keep in mind. As the injured employee, you cannot reopen the case in the future. The employer also does not have to admit any liability for the accident in question.
Both the employee and the employer must agree to the settlement and it must be approved by a judge. In order to enter a Section 20 settlement, there must be a genuine issue about the cause of injury, dependency, jurisdiction or liability.
It is also important to note that a lump sum payment is not considered a workers’ compensation payment except for insurance rating purposes.
Order-approving settlement [Section 22]:
Order-Approving Settlements – this settlement falls under Section 22 and is when a percentage of disability is apportioned to the injured part of the body. For instance, if you injured your leg at work and the injury called for surgery, you could receive a 20 percent disability of your leg. You would then be entitled to a monetary award that is based on a rate chart by the New Jersey Department of Labor, which is prepared each year.
You would still be able to work and you would receive compensation for your injury that affects your work/daily life.
In this type of settlement, the injured employee has the ability to reopen the case in an effort to modify the award. It can be reopened within two years of the last payment to seek additional medical payments and temporary/permanent disability payments.
For the employer under this type of settlement, they accept a specific medical condition or conditions. If the employee ends up injured again in the future and suffers the same medical problem, the employer will receive a credit for the percentage paid.
Talk To An Experienced Parsippany Workers’ Compensation Lawyer Who Helps Victims Of Workplace Accidents In Essex County, Hudson County, Union County, Morris County, & Beyond
Workers’ compensation settlements can be tricky and even the wording of the agreement can have a big impact on what you receive. The settlement will need to be approved by a judge before it is set into action so it is important to have a workers’ compensation lawyer representing you.
The lawyers at the law firm of McHugh & Imbornone, P.A. know the ins and outs of workers’ compensation litigation and what it will take to get you the compensation you deserve. Contact us today at 973-966-1520 for a free initial consultation.
The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney/client relationship. If you are seeking legal advice, please contact our law firm directly.