Understanding Workers’ Compensation Costs and Fees in New Jersey

This is a common question, and it is necessary to fully understand the costs and fees that will be deducted from your award as you consider a potential settlement or are reviewing a judgement by a Judge of Compensation. The largest fee is the attorney fee, this should have been initially discussed during the intake and noted within your fee agreement.

Workers’ compensation cases are considered contingency fee cases, this means that the attorney’s fee you pay is based upon a percentage of your award instead of an hourly fee billed on a regular basis.

On August 22, 2024, legislation was signed by the Acting Governor amending NJSA 34:15-64 such that a Judge of Compensation has the discretion to award an attorney fee up to 25% of the ultimate workers’ compensation award. This is an increase from 20% which had been in place since the 1920s.

If your case is settling pursuant to NJSA 34:15-22, known as an order approving settlement, or pursuant to a judgment entered by a Judge of Compensation after a trial, the attorney fee is normally split between the injured worker and the workers compensation carrier.

If your case is settling as a lump sum pursuant to NJSA 34:15-20, known as an order approving settlement with dismissal, the full attorney fee will be your responsibility.

Other costs and fees usually include:

Independent Medical Exams

The cost of the independent medical exams, pursuant to NJSA 34:15-64, these exams cost up to $1,000.00 each. Similar to attorney fees, these costs may be split with the carrier if your case is resolving as an order approving settlement, or would be your full responsibility if settling by way of a lump sum known as an order approving settlement with dismissal.

Litigation Costs

These may include reimbursement to the firm for collection of medical records, transcript costs, records from the Division of Workers’ Compensation related to prior claims – regardless of settlement type, these will likely be solely the injured workers responsibility.

Child Support

If you have an outstanding child support order, please let your attorney know. The workers’ compensation carrier may need to have your temporary disability benefits reduced by your weekly obligation. Further, your award may be impacted such that you would receive $2,000.00 after the deduction of costs and fees, and the balance of your award would be paid to probation and applied to your child support obligation(s). If there is any additional money remaining after payment of child support, the remaining money is then payable to the injured worker.

Medicare/Medicaid

All parties in a workers’ compensation claim have an obligation to protect Medicare and Medicaids interests. Both Medicare and Medicaid are considered secondary payers and if you receive coverage from them, a request has to be submitted to them asking if they are asserting a lien, meaning are they seeking reimbursement for any medical charges they have paid. Once their response received, it should be reviewed to determine if they are applicable to your claim, if they are, then there are negotiations as to who is responsible for the charges, the carrier and/or the injured worker. If the charges are not related, then they are disputed and sought to be removed from the reimbursement request.

Stenographer

This charge is for the reporter that transcribes the hearings related to your claim. Normally these charges are the responsibility of the workers’ compensation carrier.

Miscellaneous

Every workers compensation case is different, there may be additional costs associated with your claim, these would be reviewed and addressed with you prior to the resolution of your claim.

Conclusion

Understanding your rights under New Jerseys workers’ compensation laws is crucial if you are injured while working. If you are ever in doubt, remember that consulting with an experienced workers’ compensation attorney can help you safeguard your rights and secure the compensation you deserve.