FREE CONSULTATIONS 856.983.8695

How Does A Workers’ Compensation Claim Affect Your NJ Car Accident Lawsuit?

Philip Ciprietti, NJ Car & Truck Accident Lawyer

Philip Ciprietti offers clients a genuine interest in their well-being and success and places clients’ interests first in all matters. Since 1982, Mr. Ciprietti has been certified by the NJ Supreme Court as a Certified Civil Trial Attorney.

Review: "His commitment and his willingness to go the extra mile, to fight hard for you make Phil an outstanding attorney. He is the one you want on your side." Read more testimonials.

NJ car accidents happen every day.  Some auto accidents happen while the injured driver is working, such as an employee who gets into an accident while driving a tractor trailer, UPS or Fed Ex delivery truck.

Generally speaking, when a New Jersey driver is hurt and needs medical treatment after a motor vehicle accident, his own medical benefits coverage (PIP) in his car insurance policy pays for the medical expenses regardless of who caused the accident.

However, when a driver is injured in a motor vehicle accident while working, i.e., while driving a UPS delivery truck or going to a bank to make a business deposit, the injured employee/driver’s car insurance company does not pay for the medical expenses related to the accident.  Rather, the driver’s employer is responsible for the medical expenses through the employer’s workers’ compensation insurance coverage.

Related FAQ: I was driving my car in NJ to make a delivery to a customer. I was t-boned at an intersection and the other driver was at fault. Do both my car insurance and workers’ compensation pay for my medical expenses?

When workers’ compensation pays for medical expenses after a NJ motor vehicle accident, and the injured employee/driver succeeds in a lawsuit against the at fault driver, the injured employee/driver is required to pay back the medical expenses paid by workers’ compensation. In addition, the injured employee will be required to pay back any workers’ compensation payments for temporary or permanent disability (i.e., lost wages after the auto accident).

How is Workers’ Compensation Paid Back?

Under NJ workers’ compensation law, if an employee is injured while at work, his medical expenses and lost wages are covered by the employer’s workers’ compensation carrier.

For example, a UPS driver delivering packages in Cherry Hill, NJ is injured in a car-truck accident that was caused by another driver. The driver needs medical treatment because he is injured; he would file a workers’ compensation claim because the accident happened while he was working. Therefore, medical expenses related to the car-truck accident would be covered by workers’ compensation.  However, the injured employee can only seek treatment from doctors approved by workers’ comp.  In addition, if the driver cannot work for 1 month, he would also receive a percentage of his lost wages as part of his workers’ comp claim.

Like all other motor vehicle lawsuits in NJ, the UPS driver’s ability to receive financial compensation for pain and suffering in the car accident lawsuit is governed by his “threshold” status in his personal car insurance policy.  A driver with “verbal threshold” cannot sue for his pain and suffering unless his injuries fall under statutory exceptions.  See New Jersey Car Accidents & Verbal Threshold – Can Injured Car Accident Victims Recover Damages?

Using the above example, the UPS driver’s injuries are serious, and he sues the at fault driver.  He recovers $100,000 from the lawsuit.  Worker’s compensation paid $20,000 of his medical expenses and $1,000 of his lost wages.

In this scenario, the UPS driver must pay back the money the workers’ compensation carrier paid on his behalf. This is called a lien. However, the UPS driver does not have to pay the entire $21,000.  Rather, the amount of the lien is reduced by 33 1/3% pursuant to NJ workers’ compensation law.  In addition, NJ law requires that the lien also be reduced by $750, the amount of the workers’ compensation carrier’s fair share of the costs of litigation. Therefore, the $21,000 lien is reduced by 33 1/3%, which reduces the lien to $14,000, minus $750 of litigation expenses. The injured UPS worker would pay the workers’ compensation carrier $13,250 from his settlement.

A NJ Car Accident Injury Lawyer Can Help if You were Injured in a Car Accident While Working

NJ car accident law can be very confusing.  Throwing in a NJ workers’ compensation claim for a motor vehicle accident makes it even more complicated.  If you were injured in a truck or car accident while working, Philip T. Ciprietti, a NJ personal injury lawyer, can help.  Mr. Ciprietti has been helping injured car accident victims for over 35 years. Call today for a FREE consultation.  800.281.8695

Car Accident Law Articles

New Jersey Car Accident Law – New Jersey’s Deemer Statute Explained by a New Jersey Car Accident Lawyer

It is no surprise that New Jersey roadways are well-traveled by residents of surrounding states. Whether for work or to visit the New Jersey shore, many residents of Pennsylvania, New York, Delaware, etc. are driving in New Jersey each day. However, when car or truck...

What to Do After a NJ Car Accident on the NJ Turnpike and Other NJ Highways

New Jersey car, truck or bus accidents on the NJ Turnpike, the AC Expressway or Interstate 295 are often more serious than auto accidents on local NJ roadways.  The reason is because cars, trucks or buses involved in accidents are traveling at high speeds.  Therefore,...

NJ Cell Phone Use & Car Accident Law: NJ Gets Tougher on Distracted Driving – By A NJ Car Accident Lawyer

New Jersey was one of the first states to ban the use of handheld cell phones while driving.  Despite current New Jersey laws against talking on cell phones and texting while driving, drivers are still texting and talking on cell phones while driving on New Jersey...

Car Accidents in NJ – Technology Creates New Distractions for NJ Drivers

In today’s world, technology is always changing and advancing. Whether it’s for a cell phone, tablet or smart watch, something new is always coming out. It is hard to keep up with all the latest gadgets, apps, operating systems, etc. Though we have made great...

How to Recover Lost Wages After a New Jersey Car Accident (Part 2)

New Jersey auto insurance law can be very confusing, and policy holders who do not know or understand their car insurance benefits may not be receiving all of the benefits they are eligible for. New Jersey drivers in Cherry Hill, Marlton and Camden who have “standard”...

FREE CONSULTATIONS

    Spam:  

    *No attorney-client relationship is created by use of this email form. Do not email confidential or time-sensitive information. Call the firm for immediate assistance.

    OUR OFFICE

    79 S. Maple Avenue
    Marlton, NJ 08053
    Phone: 856.983.8695
    Fax: 856.983.0015
    Toll Free: 800.281.8695

    Google Map/Directions