Reading Room

An employee who is laid off may also collect workers’ compensation benefits. Because the economy is doing poorly that doesn’t necessarily mean that an injured or disabled worker is excluded from other benefits.

The present economic downturn has been compared to the Great Depression of the 1930s or the recession of the 1980s.

A licensed practical nurse who suffered from preexisting pulmonary disability was permitted to recover benefits against her employer when a co-employee sprayed perfume at work. The NJ Appellate Division ruled that a licensed practical nurse was allowed to seek benefits when exposed to an employee's perfume even though the injured worker came to the employment with severe pre-existing obstructive lung disease.

In a landmark decision of immense national significance, the US Sixth Circuit Court of Appeals ruled that a RICO claim brought by injured workers against their employer, insurance carrier and employer medical expert could proceed. Several injured workers brought the Federal Racketeer Influenced and Corrupt Organizations Act (RICO) against their employer, Crawford & Company and [cut-off treatment doctor] Dr. Saul Margules.

Delay has always been a problem when injured workers need medical treatment.  Traditionally, insurance companies, especially in hard economic times, have sought to hold onto their money and not distribute benefits.

The escalating financial crisis of Lehman Brothers [stock down 94% Jan-Sept 2008], may have a major impact on workers’ compensation throughout the US. Over this weekend, the financial guru's scheduled meetings in an effort to avoid a complete crash of Lehman Brothers. In the meantime, the waves of this potential economic meltdown are sending hurricane-type surges throughout the US workers’ compensation system.
 

The NJ Star-Ledger newspaper conducted an eight-month survey involving hundreds of thousands of workers compensation claims pending before the New Jersey Division of Workers Compensation. The Star Ledger series ran for three days and exposed huge difficulties in the NJ workers' compensation system.

Workers' compensation insurance companies have a long history of guarding themselves from liability from asbestos exposure issues. Recently the NJ courts have ruled that workers' compensation insurance companies are shielded from liability when the insurance company performs hygiene studies and does not take action to protect the employees that it has insured under the policy.

In a sweeping decision that will impact thousands of cases, the NJ Supreme ruled that electronic cancellations of workers' compensation policies did not comply with the statute.

Occupational lead exposure, especially to lead paint, has been a well-known hazard in the workplace you decades. Recent epidemiological studies demonstrate the causal relationship between exposure to impaired brain function, over time, in adults resulting in early aging. Employers and insurance carriers should brace themselves for a wave of claims.