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NJ Adopts New Rules Aimed at Reform

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The State of New Jersey recently adopted new Administrative Rules which appear to be the most sweeping reform of the NJ Workers' Compensation system in the last 17 tears. The rules address substantive and procedural aspects that may result in a detrimental effect upon the rights of many litigants. The Rules were adopted on March 3, 1997 with the support of business and the insurance company lobbying teams.

  • more specific pleading is now required

  • more delays in the processing of claims have been imposed

  • increased difficulty in obtaining exposure information from the employer

  • no commutations of awards will be permitted in total or dependency claims

  • the time to file a discrimination action has been reduced to 180 days

Since many of the rules promulgated appear to be contrary to the spirit and intent of the New Jersey Workers' Compensation Act, it would not be surprising if the Courts as well as the NJ Legislature review the proposals and modify them to conform with the philosophy that workers' compensation is social remedial legislation and a type of social insurance for the injured worker. The Rules were adopted on March 3, 1997 and for the most part took effect immediately.

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