NJ Senate Amends Provision of NJ Workers' Compensation Statute

On June 30, the New Jersey State Senate amended a long standing provision of the New Jersey workers' compensation statute and passed Bill S374 to eliminate an employer's "voluntary tender" credit on employee's counsel's attorney fees, a portion of permanent disability voluntarily paid to an employee in good faith within 26 weeks after the end of active medical treatment. Under the proposed legislation, only if a voluntary tender is made before the employee has retained legal representation would there be a credit to the employer for any voluntary payments of permanency.

The bill was opposed by New Jersey's largest insurance company, NJM. It passed the Senate by a vote of 23-15 and it is now before the State Assembly (Bill number A3403). Further action is expected in the Assembly this fall.

By: Richard Tavani