Exclusivity Rule of Workers’ Compensation and Important Exceptions for Injured Workers in New Jersey
The law regarding workers’ compensation in New Jersey is strict and based on the fundamental concept that employees who are injured on the job must accept workers’ compensation benefits as their sole remedy. Workers’ compensation, or workers’ comp benefits as the exclusive remedy to a workplace injury, helps to ensure that injured workers receive proper care and prevents the courts from being bogged down with hundreds, or even thousands, of negligence lawsuits filed by employees against their employers whenever someone is injured at work. However, in some work-related injury cases, the exclusivity provision does have certain specific exceptions. These exceptions are rare and very limited, but when they apply, the worker is not limited to accepting workers’ comp as the sole remedy to their injury. Instead, they are able to file a lawsuit against the liable party.
Understanding when and how these exceptions apply can be complex and confusing for the average individual unfamiliar with the laws and all the ins and outs of workers’ compensation. If you have any doubts or questions about whether your case may qualify as an exception to the exclusivity provision, an experienced New Jersey workers’ compensation attorney at Chamlin, Uliano, and Walsh can review your case and help you determine the answer. We can also assist you throughout the process of securing the compensation to which you are entitled, whether it be solely through the workers’ compensation claim process or in conjunction with an injury lawsuit. Contact us at your earliest opportunity.
Delving into the Workers’ Compensation Exclusivity Remedy: N.J.S.A. 34:15-8
N.J.S.A. 34:15-8 is the exclusivity clause for New Jersey’s law regarding workers’ compensation. This exclusivity provision essentially states that both employers and employees are surrendering the right to any other methods, forms, or amounts of compensation or determination in regard to workplace injuries. In other words, both parties agree that workers’ compensation is the only remedy available to pay for an injury sustained in the workplace. This keeps things balanced between employees and employers when injuries occur.
This exclusivity clause is a trade-off where the injured employees are guaranteed benefits for their injuries without having to prove that their employer (or anyone else) is at fault, and the employers accept liability for the injury while gaining immunity from any lawsuits related to those injuries. Because workplace injuries can range from relatively minor injuries such as deep lacerations requiring stitches to life-threatening injuries such as amputation of a limb, this can give employees peace of mind knowing that they do not have to worry about how to pay extensive, expensive medical bills. It also provides peace of mind to employers because they do not have to worry about being sued for hundreds of thousands or even millions of dollars.
Shared Advantages of the NJ Exclusivity Provision for Employers and Employees
While both employees and employers may argue that workers’ compensation is more beneficial to one party than the other, the reality is that both sides benefit from this insurance system. Not only do injured employees and their employers benefit as individual workers and businesses, but industries as a whole tend to benefit from this program that limits lawsuits when workers are injured on the job.
Advantages for Employees
When an employee is injured at work, they often need immediate medical care. This results in incurring bills for that care and time away from work to receive that care and possibly to recover. This means the worker is adding up new medical expenses to go with their usual expenses while their income is reduced or nonexistent.
Workers’ compensation has significant advantages for these employees. Because the system is no-fault, they do not need to prove that their employer, another employee, or anyone else is at fault; they only need to prove the injury happened while they were doing their job. This leads to faster benefits, so the employee is not left with a stack of bills they aren’t sure how to pay or late fees added on because these bills are not getting paid on time. Their medical expenses and lost wages are covered by workers’ comp, so the employee does not have to pay anything for an injury that was not their fault.
Advantages for Employers
For employers, workers’ compensation also has important benefits. As a no-fault system, the employer does not have to admit fault, preventing them from getting a negative reputation with future potential employees. Employers are also protected from lawsuits that could potentially cost them far more than the expense of workers’ comp insurance. Even if the employer successfully defended the lawsuit and did not have to pay a settlement to the employee, they would still have attorney’s fees and other expenses associated with investigating the cause of the injury and proving fault. If the employer did not successfully defend the lawsuit, a settlement could be thousands of dollars more than the workers’ comp claim cost.
Key Exceptions to the Workers’ Comp Exclusivity Rule in New Jersey
While New Jersey’s workers’ compensation law does have an exclusivity provision that requires workers to accept workers’ comp as the sole remedy for their work-related injury, there are two exceptions to the provision: intentional wrongs and third-party claims. These exceptions are important because they apply to circumstances in which the injured worker may not have been injured otherwise.
Intentional Wrongs
Workers’ compensation is a no-fault insurance program that pays for workplace injuries that occur accidentally or unintentionally. For example, an employee cuts themselves using a box knife that slips in their sweaty hand, or they miss a step coming down a ladder and sprain or fracture their ankle. However, if the employer is responsible for an intentional wrong, the employee can sue their employer and also still receive workers’ comp benefits.
Intentional wrongs in this context refer to deliberate acts to injure a worker or knowingly exposing workers to a substantial certainty of injury. For example, a deliberate act to injure a worker might be assault by their supervisor. Knowingly exposing workers to a substantial certainty of injury might be removing safety guards or not providing proper safety equipment in circumstances where injuries have occurred in the past.
Challenges of Proving an Intentional Wrong
Workers should understand that there is a high burden of proof when proving an intentional wrong. It is difficult to prove that an employer engaged in an intentional wrong and requires substantial evidence to prove it. In particular, the legal standard to determine intent in these cases can be burdensome to prove, as the injured worker must first prove that the employer’s action or lack of action was an intentional wrong and then that this intentional wrong was responsible for the worker’s injury.
Two-Pronged Analysis for Intentional Wrong Determinations
This is done with a two-pronged analysis. The first prong considers the employer’s conduct in the context of their industry to determine if the employer’s behavior is consistent with how most employers behave in that industry or if it is unusual. Then, the second prong considers whether the injury that occurred is typical for the industry or if the injury goes beyond what most people would be able to reasonably foresee occurring as part of the job. For example, most people would agree that cuts to the hands might be reasonable injuries when working in a knife factory and that cut-resistant gloves would reduce those injuries, which could make failure to provide and insist on the use of such gloves an example of knowingly exposing workers to a substantial certainty of injury. They would also agree that being stabbed in the shoulder with a knife is not a reasonable injury that would occur and is likely a deliberate act.
Third-Party Claims
The exclusivity provision also does not prevent employees from suing third parties who may be responsible for their injuries. These can include manufacturers of defective equipment, negligent property owners, subcontractors on the property, or others. Like intentional wrongs, an injured worker can file a lawsuit against a liable third party and still receive workers’ compensation benefits.
Examples of these third-party claims might include an equipment manufacturer who failed to install a safety guard on a piece of equipment, and a worker’s hand is amputated as a result or a negligent property owner who knew that a wooden staircase was rotted and allowed the worker to climb the stairs, resulting in the worker falling through and breaking both legs. It could also include 
a subcontractor who is fixing a roof and drops a nail that a worker steps on or leaves a ladder unattended in front of a door, and a worker trips as they come through the door and breaks a wrist or knocks out a tooth.
What Falls Outside of Workers’ Compensation Coverage in NJ
Another important note for workers to remember is that workers’ compensation covers workplace-related illnesses and injuries only. If a worker is experiencing another type of claim, such as discrimination or harassment in the workplace, workers’ comp does not apply. In cases like that, the worker is allowed to take legal action. If the worker is experiencing discrimination or harassment as a result of a work-related injury, they can still take separate legal action. If a worker is uncertain whether they have grounds to file a separate legal action, they can consult with a workers’ compensation attorney to learn more about when workers’ comp applies and when it does not.
Our NJ Workers’ Comp Lawyers can Help You Determine if an Exception to the Exclusivity Provision Applies to Your Case
Upon being injured at work in New Jersey, you may have been told that workers’ compensation was your only option to cover your injury. While this may be true, our experienced lawyers at Chamlin, Uliano, and Walsh can help you determine if you have a viable claim outside of workers’ comp, such as against a third-party or if your employer engaged in an intentional wrong. Additionally, whether your claim is solely a workers’ comp claim or may lead to another claim, having an attorney on our team assist in investigating the circumstances of the injury and gathering evidence to support your claim can be invaluable. We may be able to find small pieces of evidence that you might not even know to look for, find and persuade any witnesses to provide a statement, determine liability for potential additional lawsuits, and help build a strong case in your favor. Depending on your situation, we may also be able to assist you in negotiating a fair settlement for your claim. Contact our office in West Long Branch, NJ at 732-440-3950 today to discuss your legal options.