New Jersey Grapples with Fire and Policemen Benefit Entitlements
February, 2005
Workers’ Compensation (WC) is a benefit that is regulated by statute in each state. The Workers’ Compensation law prescribes the process of filing claims, what is covered, what claims are work related and the amount of benefits employers in every state are required to have workers’ compensation coverage. The employers pay 100% of the cost.
New Jersey - Employees who are disabled under worker’s compensation receive 70 % of their weekly wage. Considering that WC benefits are not taxable and disabled employees are no longer incurring cost of going to work, employees on worker’s compensation benefits are close to equaling their take home pay.
New Jersey is one of only five states that require compulsory temporary disability (TD) insurance. This is for non-work related conditions. Employees collect by the 2/3rds of their wages on temporary disability. This cost is shared between the employee and employer, with the employer getting the lion’s share.
New Jersey Proposal
To allow employees to collect both WC and TD for the same incident would represent a complete change in our systems. The standard in American industries is to treat on the job injuries and to provide benefits according to workers’ compensation law within that state. Non- Occupational conditions are treated in disability programs that the employer provides but the employee pays a large chuck of the cost. Employees have an option if they want to participate in this program. Only New Jersey and five other states require that the employer provide this coverage.
Our system would not allow for a disabled employee, regardless of their position in the company, to collect both. However, individuals can buy insurance that would take care of certain payments if they were unable to make them, i.e. car payment.
To allow disabled employees to collect both WC and TD benefits would also result in unjust compensation. Employees would receive higher compensation than when they were working. This too is contrary to our entire system of compensating employees for work related injuries. The basis of our system for compensating individuals for on the job injuries is make the individual whole based upon their ability to earn wages. The foundations of our WC system are not designed to reward employees for on the job injuries.
Employees receiving greater compensation for staying at home raises issues with the helping employees return to productive work. Why will employees ever return to work and take a reduction in their pay? American social system tried this system for year and it didn’t work. Initials were providing with welfare benefits and they had no obligations to help themsleve improve. We know this didn’t work and it was changed so people must do something (social work) to continue to receive benefits. (Tom, I am not familiar with these details of these welfare programs other than that by encouraging people to work was better for the employee and the tax payers).
Allowing employees to double dip would place added taxes on industry and affect in their ability to attract employers to New Jersey. If a company is considering in make a capital investment, the cost of WC and TD are factors that enter the cost of doing business when selecting a state.
You might also be interest Tennessee just revised their entire WC law to attract industry. Their law, previously, was very liberal and Tennessee was loosing business to neighboring states.
Policeman and Guards
Some cites and states have accommodated the unique exposures of policemen and Guards.
Policemen and guards have unique exposures while working that can create cumulative injury claims. Indeed their type of work has placed them in situations that are very stressful. To recognize this exposure there are provisions in some jurisdiction that automatically and recognizes certain claims as being work related. The areas are generally related to heart conditions or mental stress claims. Specific language has been adapted to accommodate these conditions.
In California Fire, Police, have a special presumption in the WC law that states any claim for certain conditions are automatically assumed to be work related. Include in this presumption are heart, cancer, hepatitis, back and hernia. Ca does also provide that the employee receive 100% of their full salary for one year.
Connecticut had introduced the a bill in the 2005 that reads in part:
That chapter 568 of the general statutes be amended to require workers' compensation to cover the cost of treatment for certain stress-related injuries suffered by police, fire and emergency medical personnel, but not to cover lost wages resulting from such injury.
There are similar statutes in many cities and towns. However, even in the most liberal state on workers’ compensation they only pay the full salary for one year.