Workers’ Compensation Legislation Proposed To Increase Benefits

The first major attempt to improve the NJ workers' compensation system has been proposed by Assemblyman Neil Cohen (D-Union). Cohen, who is Deputy Minority Leader, has introduced a package of 9 bills which would increase benefits to injured workers and their dependents.

The proposals would increase dependency benefits from 50% of the deceased employee's wages to 100% of the wages. The rationale of this legislation is that the dependent(s) should not be penalized as a result of a death caused by an occupational accident or exposure. The bills would also increase ALL workers' compensation benefits, temporary disability, total permanent disability and partial permanent disability, from 70% to 80% of the worker's weekly wages received at the time of the injury. It also increases the maximum benefit level for temporary disability and total permanent disability from 75% to 80% of the average weekly wage (AWW) for all workers in the State and from 75% to 80% of the AWW for any partial permanent disability compensable for more than 450 weeks.

The package also contains the Workers' Compensation Medical Information Confidentiality Act. This bill prohibits an employer, workers' compensation insurance carrier, health care provider, or other party to a workers' compensation case from disclosing medical information about a claim to anyone other than another party to the case, the Division of Workers' Compensation, an insurance-support organization, or the compensation rating and inspection bureau, except in certain circumstances and only if the information is disclosed in a manner that makes it impossible to ascertain the identity of the claimant involved, or if the information is subject to a subpoena by the Commissioner of Banking and Insurance in an insurance fraud investigation or by a court of competent jurisdiction in a civil or criminal proceeding.

The proposed legislation prohibits the employer, the workers' compensation insurance carrier for the employer, the health care provider treating or evaluating the individual in connection with the case, or any third party in the case from withholding from a claimant any medical information requested by that individual.

The bill also prohibits the Division of Workers' Compensation from disclosing information regarding a workers' compensation case, unless the information is disclosed in a manner that makes it impossible to ascertain the identity of an individual claimant or unless the disclosure in made to an interested party in the case or to specified agencies which are restricted to using the information to prevent fraud in connection with insurance or public benefits.

The proposed legislation also requires the Division and any other person who discloses medical information to notify a claimant in writing when it does make such disclosures.