What is the New Jersey Second Injury Fund?
New Jersey created the Second Injury Fund in 1923. This fund was meant to encourage employers to hire disabled workers by limiting their liability for compensation payments.
Employers were afraid that workers who had already been injured on the job or who have pre-existing conditions would be more prone to injuries on the new job thanks to their partial disability.
When does the Second Injury Fund take over?
If you are injured in a new way on the new job and are rendered totally disabled by the new injury, the Second Injury Fund eventually takes over payments, rather than the employer’s workers compensation policy. This policy also covers you in cases where a combination of a preexisting injury or illness and a workplace injury cause total permanent disability.
You may still receive temporary benefits from your employer for a second injury. Fund benefits kick in six months before the end of the first 450 weeks of permanent and total disability. During that time, you will need to complete forms and receive medical certification that you are 100% totally and permanently disabled and are unable to work any job.
What does the Second Injury fund cover?
The fund only covers lost wages up to 70% of your weekly wage. It does not cover medical expenses. These must still be covered by the employer’s workers compensation plan. In addition, Second Injury Fund payments are reduced if you receive other benefits, such as social security benefits.
These benefits will pay for life, and cease when the beneficiary dies. You do not have to pay taxes on this money. The fund doesn’t pay death benefits to dependents, or funeral expenses, which means your dependents or family members will have to make their own arrangements in that regard.
How does the Second Injury Fund impact your personal injury case?
If we can definitively show your employer that the Second Injury Fund will take over payments at some point they may be less likely to deny benefits or more likely to settle if necessary. Their liability is limited and a barrier to settlement has been removed.
As with any issue touching on workers compensation, obtaining Second Injury Fund benefits can be complex. If you’re having any trouble with workers compensation benefits we encourage you to reach out to our office to get help today.
See also:
When Does Workers Comp Start Paying in NJ?
What Happens When a Work-Related Injury Exacerbates a Pre-Existing Condition in New Jersey?
The Two Types of New Jersey Workers Compensation Settlements
