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Lost wage compensation in New Jersey

On Behalf of | Dec 19, 2023 | Workers' Compensation

In the realm of New Jersey’s workers’ compensation, one aspect that often arises is payment to replace wages lost during time off work. The system recognizes this challenge and provides a mechanism to address lost wages resulting from work-related injuries.

Compensation typically depends on the average weekly wages of a worker. The Department of Labor and Workforce Development reported the average weekly wage in the state for 2022 was $1,507.76.  This compensation aims to alleviate the financial burden on injured workers by providing financial support during their recovery period.

Process for securing lost wage benefits

To obtain lost wage compensation, the worker must notify the employer of the injury promptly. The employer is responsible for reporting the injury to their workers’ compensation insurance carrier.

The carrier then makes decisions on whether to pay out compensation. It depends on the severity of the injury and its impact on the individual’s ability to work.

Details of lost wage compensation

Lost wage benefits cover 70% percent of the injured worker’s average weekly wage. The compensation does not equate to the full amount of the worker’s salary, and there is a maximum payout limit, which could mean a worker gets less than the full 70%.

Additionally, there is a waiting period of seven days off work before lost wage benefits start. This waiting period ensures compensation goes to those with more prolonged recovery times rather than short-term injuries. The compensation is retroactive, meaning the injured worker will receive compensation for those first seven days of lost work once payments begin.

Lost wage compensation serves as a financial lifeline for injured workers, It helps them cope with the economic challenges that arise from workplace injuries. By understanding the process and requirements, workers can better navigate the system and secure the financial support they need during their recovery.