New Jersey lawmakers introduced a new piece of legislation on Thursday aimed at improving the financial support provided to workers who have been totally or permanently disabled due to workplace injuries. The proposed legislation, Assembly Bill 4559, seeks to implement an annual cost-of-living adjustment (COLA) to the weekly workers’ compensation benefit rate in such cases. This adjustment would help ensure that disabled workers receive benefits that keep pace with inflation, addressing the increasing financial burdens they may face over time.
Currently, state law mandates annual adjustments to workers’ compensation benefits for cases of death and permanent total disability, but this requirement is only applicable to injuries sustained before January 1, 1980. These adjustments are paid from the state’s Second Injury Fund, which was established to support individuals who were injured prior to the cut-off date. However, Assembly Bill 4559 would significantly broaden the scope of these adjustments. If passed, the bill would extend the COLA adjustments to workers injured after December 31, 1979, with benefits for these individuals beginning after July 1, 2025.
The introduction of this bill comes in response to a significant backlog of retroactive benefits that workers who sustained injuries after 1979 have not yet received. This backlog has created financial strain on workers who have been living with the long-term effects of their injuries without receiving the necessary adjustments to their benefits. By implementing this new legislation, lawmakers hope to rectify this issue and provide a much-needed solution for those who have been waiting for fair compensation.
Importantly, the bill includes provisions that offer exemptions to certain public safety workers who are already receiving COLAs through other programs. These individuals will not be affected by the proposed legislation, ensuring that they continue to receive the benefits they are entitled to without any overlap or redundancy.
Another key component of Assembly Bill 4559 is how it would impact workers who are already receiving Social Security retirement or survivor benefits. In such cases, the COLA supplement provided by the bill would be reduced by the amount of the worker’s Social Security benefits. However, the bill clarifies that the cost-of-living increases in those Social Security benefits will not be factored into the reduction, ensuring that the total compensation remains fair and equitable.
Assembly Bill 4559 has been referred to the Assembly Labor Committee, where it will undergo further review and discussion. If approved, this legislation would represent a significant step forward in addressing the financial challenges faced by disabled workers in New Jersey. It would ensure that the workers who are most vulnerable due to workplace injuries receive the compensation they deserve and that those benefits remain reflective of the changing cost of living. Lawmakers are hopeful that the bill will pass, bringing much-needed relief to those affected by long-term disabilities caused by workplace injuries.
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