NJ Workers Compensation Payments to Decrease

For the first time in history, the NJ workers compensation benefit rates are going to decrease. The maximum benefit rate will decrease 0.3% from $794.00 to $792.00 per week.


The 2011 maximum workers' compensation benefit rates for temporary disability, permanent total disability, permanent partial disability and the dependency rate are based upon the States's Average Weekly Wage (SAWW) for the year prior. New Jersey currently provides for a maximum benefit of 75% of the statewide average weekly wage (SAWW). 

The New Jersey maximum rate has been considered significantly low when compared to to other states and perennially a higher adjustment has been recommended.  

The rate applies to those work related injuries and deaths that occur in 2011. NJ ADC 12)2351.6, 42 N.J.R. 1994 (a). In 2007 the rate rose a modest 2.7 %.

Historically, NJ maximum workers' compensation has only risen yearly over the decades. The 2011 announced decrease represents a major slow down in the State's economy. Despite the announced fall in scheduled disability rates, the cost of soaring medical treatment remains uncapped and its economic impact remains uncertain in an era of declining payrolls and lower premium collections for compensation benefits.

Related Articles:

• Slow Economic Grown Forecasts Dismal Future for Workers Compensation
• The Declining Euro and US Workers Compensation
• NCCI Reports Gloomy Outlook for Workers Compensation
• NJ Unemployment Worse Than Previously Estimated
• Is The Recovery Of The Workers’ Compensation System An Illusion?

For over 3 decades the Law Offices of Jon L. Gelman 1.973.696.7900 jjon@gelmans.com have been representing injured workers and their families who have suffered occupational illnesses. Author NJ Workers Compensation Law (West).

$30.4 Million Verdict in Popcorn Flavoring Lawsuit

A jury in the Chicago area awarded a local factory worker $30.4 Million for a pulmonary illness resulting from exposure to popcorn flavoring,  diacetyl. The verdict is considered to be largest ever in the US for an individual claim involving a chemical used to flavor popcorn.

Click here to read the Chicago Tribune article

For over 3 decades the Law Offices of Jon L. Gelman 1.973.696.7900 jon@gelmans.com have been representing injured workers and their families who have suffered occupational illnesses. The read more about diacetyl and workers' compensation click here.

The Fatal Consequences of the GM Bankruptcy

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The General Motors (GM) bankruptcy is going to adversely impact workers' compensation. It has been estimated that GM is facing  $500 Million worth of future mesothelioma claims that its bankruptcy estate is going to avoid paying. The claims will arise because  deadly asbestos fiber that was used in in the manufacture of GM products including brakes.

Last month U.S. Bankruptcy Judge Robert Gerber in New York permitted the unsecured creditors (asbestos claimants) to obtain documentation from GM about the number of estimated / asbestos liability claims it could be facing in the future. As a result of the bankruptcy action, GM transfered its assets only to Motors Liquidation Co., but it plans not to transfer its asbestos liabilities to the new company. Therefore, future asbestos claims against GM will not be paid.

Brakes linings were raw asbestos. GM brakes were sold to and used by auto-mechanics for decades.  Asbestos is a known carcinogen and its deadly effects have been recognized since the early 20th century. One of the latent diseases caused by asbestos exposure is mesothelioma, a rare and fatal illness.

Workers' Compensation systems throughout the United States have been literally swamped with asbestos related claims as the workforce aged and the disease has manifested. The workers' compensation insurance carriers and past employers who used asbestos products have sought to be reimbursed for benefits paid to injured workers by the ultimate wrongdoers, the suppliers, manufacturers and distributors of asbestos products. Those wrongdoers failed to place warning of its products concerning the hazards of asbestos fiber and knew of the hazards.

Taking away the right of ill employees to seek benenfits from GM for its alleged wrongful acts will severely impact the workers' compensation system throughout the US, especially if this process of avoidance becomes of model for future asbestos bankruptcy actions. Difficulties navigating the workers compensation systems at present for occupational illness benefits have become burdensome and extremely difficult for injured workers and their families. GM's attempt to absolve itself from financial responsibility for asbestos related disease should not be permitted as it may create a fatal economic attack on the ailing compensation system.

For over 3 decades the Law Offices of Jon L. Gelman 1.973.696.7900 jon@gelmans.com have been representing injured workers and their families who have suffered asbestos related disease.

Related articles

• GM's Estate May Face Billions in Asbestos Claims (businessweek.com)
• The Asbestos Debate is Over
• Who is Exposed to Asbestos-Who is At Risk?
• History of Asbestos and the Law

CMS/MSP Statute Tolling Case Set for Hearing by Federal Court

The claim filed by the US government for reimbursement against multiple law firms and insurance companies has been scheduled for a hearing September 13, 2010 on the pending motions. The Federal government, who has claimed that the Statute of Limitation was tolled, is seeking reimbursement involving over 900 specific claims that were paid involving a liability action. The gross settlement was $275 Million for which payment was made in 2003.

The Centers for Medicare and Medicad Services (CMS) under the Medicare Secondary Payer Act has alleged that it was not reimbursed. The Government contends that the Statute of Limitations under 28 U.S.C.2415 is 6 years and not three years. Alternatively the Government has argued that the Statute  f Limitations was tolled under 28 U.S,C, 2416(c), which permits tolling where a claim has accrued, but "facts material to the right of action are not known and reasonably could not be known" by the Government.

The attorneys and insurance companies contend that the Statute of Limitations is a valid defense since the the claim arose when the defendants were originally obligated under the settlement agreement to make payment. Travelers and AIG, as parent companies,  claim that they are not proper parties to the case and should be removed as parties. The insurance companies, in a brief filed in June 2003, also allege that the bar to permitted the statute of limitation tolling should have been dropped under Federal statute. The stated in  "....once the facts making up the 'very essence of the right of action' are reasonably knowable."

United States of America v. James J. Stricker, et al., Case No. 1:09-cv-02423-KOB (USDCT AL).

Related Articles:

Amended Complaint Filed in CMS Recovery Action Against Law Firms

Click here to read more about Medicare Secondary Payer Act and workers' compensation.

For over 3 decades the Law Offices of Jon L. Gelman 1.973.696.7900 jon@gelmans.com have been representing injured workers and their families who have suffered occupational exposures.

Spinal Kinetics-A New Computer Assisted Radiographic Mensuration Analysis

A new approached to the objective measurement of spinal damage is now being offered by Spinal Kinetics. The technique provides standards for the measurement for spinal ligamentous assessments using Computer Assisted Radiographic Analysis (CRMA). Board Certified Radiologists utilize a new computer assisted program to  determine: a treatment plan, ability to play and work, as well a pain management.


Click here to read more about this Spinal Kinetics
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For over 3 decades the Law Offices of Jon L. Gelman 1.973.696.7900 jon@gelmans.com have been representing injured workers and their families who have suffered occupational exposures.

Ballot Issue in Washington State to Privatize Workers Compensation

The countdown is underway and the rhetoric is becoming inflamed, as private insurance carriers in Washington State battle to privatize the workers compensation system.  $1 Million in donations have been accepted to date.


"There is a ballot initiative being presented by the large industries of Washington State in the next election cycle that could divide a worker’s overall notion of how they feel politically and what is in their own personal best interest. It is in regards to workers compensation and the fate of theWashington State Department of Labor and Industries.


"The Building Industry Association of Washington (BIAW) introduced Initiative 1082. The BIAW is a conservative organization who “fight against” government on behalf of private industry. They are specifically geared to improving the profit of the building industry through deregulation, much like what happened with the banking industry in the early 2000’s, which resulted in a global economic collapse.


"Their intent with I-1082 is to privatize workers compensation insurance in Washington state. In theory this would bring down premiums due to competition, or that’s what many who promote privatization contend. Others who back this initiative say that this would allow employers more choice on their workers compensation plans and thus be able to better protect their workers.


"With help of private donation from Washington businesses large and small, the BIAW spent about $500,000 to put the I-1082 on the ballot. This initiative was also largely backed by those who would reap the profits from it, the insurance companies. Liberty Mutual, the new corporate parent of Safeco, has given $300,000 to the campaign, a mere drop in the bucket compared to the expected profit to be had if the initiative passes.

Complete Blog: http://tinyurl.com/2a8egv5 Philips  Webster

The Complete Ballot Initiative: http://tinyurl.com/2bb8xyl

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For over 3 decades the Law Offices of Jon L. Gelman 1.973.696.7900 jon@gelmans.com have been representing injured workers and their families who have suffered occupational exposures.
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Related Articles:

• I-1082: Don't sign it, don't vote for it

More Related articles:

• Workers comp initiative steps closer to ballot (sfgate.com)
• Workers comp initiative steps closer to ballot (dailycaller.com)
• Workers comp initiative qualifies for Wash. ballot (seattletimes.nwsource.com)
• A challenge to BIAW's Tom McCabe (horsesass.org)
• Republicans back BIAW initiative (seattlepi.com)

State Colleges Seek to Privatize Workers' Compensation Coverage

NJ State colleges and universities want to opt out of the costly NJ State claims network and are seeking to establish a joint fund to cut costs. Yesterday S2067 advanced in he NJ Legislature and was transfered to the Senate Budget and Appropriations Committee. 

Senate Bill No. 2067 of 2010 authorizes two or more State colleges or universities to form a State college risk management group and to participate in joint liability funds, risk management programs, and related services provided by the group, subject to certain regulatory oversight by the State Treasurer. Currently, the Division of Risk Management in the Department of the Treasury administers certain insurance coverage programs for various agencies of State government, including State colleges. This bill would modify that authority in order to allow State colleges to form their own risk management groups and joint liability funds to provide that coverage.

For over 3 decades the Law Offices of Jon L. Gelman 1.973.696.7900 jon@gelmans.com  have been representing injured workers and their families who have suffered occupational exposures.

Related Workers' Compensation Articles:

• New Jersey Task Force Recommends Privatization of Workers Compensation
• Budget Crisis Triggers NJ DWC Closing

More Related Articles:

• Tight budgets force local colleges to lay off employees (nj.com)
• Keenan Develops Strategic Alliance With SAFER and i-SAFE to Assist School Districts in Addressing Internet Safety Education and E-Rate Compliance (prnewswire.com)