Supplement Benefit Bill for Surviving Dependents of Essential Coronavirus Workers Passed by NJ Legislature

The NJ Legislature has now passed S2476. It provides supplemental benefit payments to the dependents of essential employees who died in the course of employment due to the contraction of coronavirus disease 2019. 

Dependents of NJ Public Safety Workers May Receive Supplemental Benefits

A new benefit program, providing additional workers’ compensation benefits for some dependents of public safety workers, goes into effect on January 1, 2020.

New COLA Increase for Certain Dependents

NJ Governor Phil Murphy has now signed legislation enacting a  cost of living adjustment [COLA] increase for workers' compensation benefits. The law is limited to dependents of public safety employee who have been killed in a workplace accident.

The law provides, from January 1, 2020 forward, an annual COLA in the weekly WC benefit rate for the surviving dependents of any public safety worker who died from a workplace injury after December 31, 1979. A public safety worker is an individual who is employed by or a member of a paid, partially-paid, or volunteer fire or police unit, including a first aid or rescue squad. 

The annual COLA will equal the percentage increase in the annual Statewide average weekly wages earned by all employees covered by the “unemployment compensation law.” For supplemental WC benefits paid for workplace injuries that occurred after December 31, 1979 but before January 1, 2020, the calculation will be performed relative to the Statewide average weekly wages in effect in the year of the injury. However, the calculation applies only to benefits paid beginning on January 1, 2020 without any retroactive benefit payment. 

COLA benefits are to be reduced by the original amount of any Social Security benefits a surviving dependent receives (but not the amount of any Social Security disability benefits and any subsequent cost-of-living increases in Social Security benefits) or Black Lung benefits. 

In addition, COLA benefits will not be paid to any individual who elects not to receive Social Security benefits for which the individual is eligible, or in any case in which the COLA would be less than $5 per week. 

COLA benefits are to be paid from the SIF starting on January 1, 2020. The Department of Labor and Workforce Development calculates the SIF assessment for each calendar year so that projected resources in the fund equal 125 percent of expected benefit payments in the upcoming year plus 100 percent of the projected cost of administration. The surcharge is levied on all employers that are WC and employer’s liability insurance policyholders or that are self-insured, except for reinsurance or retrocessional transactions, and the State or any local units thereof which acts as a self-insured employer.

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Jon L. Gelman of Wayne NJ is the author of NJ Workers’ Compensation Law (West-Thomson-Reuters) and co-author of the national treatise, Modern Workers’ Compensation Law (West-Thomson-Reuters). For over 4 decades the Law Offices of Jon L Gelman 1.973.696.7900jon@gelmans.com has been representing injured workers and their families who have suffered occupational accidents and illnesses.

Advocates Lobby to Eliminate the Death Penalty in Workers' Compensation

Compensating dependents in the workers' compensation has always been problematic. The issue is that the system just can't make complex issues simple and hope that they just go away. 

Dependents are again advocating for the elimination of what appears as "the death penalty in workers' compensation". Workers' Compensation is a scheduled system of payments usually based on wages in effect at the of death capped by wages in effect at the time of employment. For the most part, this is ALWAYS lower than the wages paid to the worker when living. The problem is that in some jurisdictions as NJ, they never increased benefits due to inflation or with cost of living adjustments. Those dependents (post 12/31/1979) are caught in such a trap.

The Sweeney-Madden Bill would correct this injustice in New Jersey. The bill, S-785 would enact an increase effective July 1, 2011. As for the years gone bye and the failure to pay retroactive benefits, they will remain as a monument to an injustice.

Court Awards Dependency Benefits to Police Officer Who Committed Suicide

The dependents of a deceased police officer will receive benefits as a result of the officer's work-related suicide related to stress.

Wilde v Township of Cranford, NJ Spp. Div. A-3391-07T2 - Decided April 17, 2009

The NJ Supreme Court Declares Dependency Benefit Increases are Not to Be Retroactively Applied

The NJ Supreme Court reversed a ruling of the Appellate Division and declared the Legislature’s 2004 amendment to the workers’ compensation act not to have retroactive application. The Amendment increased benefits to 70% of wages for dependents of injured workers. The Supreme Court reasoned that the Legislature demonstrated no intent of making the amendment retroactive

NJ Beneficiaries Wait for Supplemental Increase in Workers’ Compensation Benefits

For almost 2 years New Jersey’s most severely injured and their families have been waiting for the legislature to act upon a law to provide for a cost of living increase of their benefits. The legislation, S-1005, would increase benefits of those injured after December 31, 1979. The bill was stalled in the legislature as the parties ironed out technical issues concerning the Social Security reverse offset. NJ is one of the few States remaining that allow workers’ compensation insurance carriers to benefit from Social Security offset rules.

Additionally NJ has side stepped the triennial increase that is provided for under the Social Security Regulations causing NJ’s injured workers not to be allowed to obtain any additional increases in benefits afforded by application of that provision of the Federal law.

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The Senate Labor Committee reports favorably Senate Bill No. 1005.
This bill provides, from July 1, 2006 forward, an annual cost of living adjustment in the weekly workers' compensation benefit rate for any worker who has become totally and permanently disabled from a workplace injury at any time after December 31, 1979 and for the surviving dependents of workers who have died from a workplace injury at any time after December 31, 1979.
The cost of living adjustment would be an amount such that, when added to the workers' compensation weekly benefit rate initially awarded, the sum would bear the same percentage relationship to the maximum benefit rate at the time of the adjustment that the initial rate bore to the maximum rate at the time of the initial award, except that the amount of the adjustment shall be reduced as much as necessary to ensure that the sum of the adjustment and the amount initially awarded does not exceed the amount which would cause any reduction of disability benefits payable under the Federal Old Age, Survivors and Disability Act. The amount of the adjustment would be paid from the Second Injury Fund (SIF), which is supported by a uniform assessment spread out evenly over all employers and insurers.
Current law requires such annual cost of living adjustments (COLAs) in the workers' compensation benefit rate for death and permanent total disability to be paid from the SIF, but only in cases in which the injury or death occurred before January 1, 1980. The bill extends the adjustments to cases originating after December 31, 1979, although the adjustments would apply only to benefits paid on those claims after July 1, 2006.
The bill makes no change in the provisions of sections 1 and 9 of P.L.1980, c.83 (C.34:15-94.4 and 34:15-94.5), which provide for the reduction of certain portions of workers' compensation benefits by the amount of Social Security disability benefits paid. In addition, the bill expressly states that the supplemental benefits shall not be paid in a manner which in any way changes or modifies the provisions of those sections.