Workers’ compensation is a program intended to provide financial assistance to workers injured on the job. This compensation is provided so workers can obtain necessary medical treatment and rehabilitative services, along with wage replacement. The amount of workers’ compensation benefits an injured worker is entitled to is based on a number of factors, including:
- The type and severity of injury
- The length of the disability
- The individual’s wages
- Other factors
Temporary Disability Benefits to Replace Lost Wages
If you suffered an injury that prevents you from working at your job for more than seven calendar days, you may be eligible to receive temporary disability benefits under the New Jersey workers’ comp program. These benefits are intended to replace lost wages during the time you are deemed temporarily totally disabled and unable to work due to the injuries.
In New Jersey, temporary disability benefits are typically about 70 percent of the injured worker’s regular wages. These benefits terminate after the injured worker is deemed able to return to work or 400 weeks elapse, whichever comes first.
Wage Loss Payments
New Jersey conducts a calculation to determine an individual’s weekly workers’ comp temporary disability payment. This calculation is relatively straightforward – take your average weekly wage and multiply it by 70 percent. The result will likely be the amount of your weekly wage replacement. Though, it is important to note that there are statutory limits on comp wage replacement, including:
- State Maximum: 75% of the New Jersey average weekly wage
- State Minimum: 20% of the New Jersey average weekly wage
Have Questions? Speak to a New Jersey Workers Comp Lawyer Today
For more than two decades, Bross & Frankel has represented injured throughout New Jersey with their workers’ comp claims. Our New Jersey workers comp law firm offers free claim reviews so that you can learn more about your legal rights and options. To learn more or to schedule a consultation with a New Jersey workers’ compensation attorney, call us at (866) 694-7952.
A seasoned New Jersey workers’ compensation attorney with Bross & Frankel will work to ensure that you get the benefits that you are entitled to under New Jersey law. Your lawyer can help make sure that all required documentation is filed on time and properly and that your medical treatment is authorized. In addition, your attorney will help you with an independent medical exam (IME), if requested, and will represent you at all hearings and appeals before the Department of Labor.
Calculating workers’ compensation wages in New Jersey involves a careful review of the employee’s average weekly wage (AWW). The AWW is typically based on the employee’s gross earnings before taxes, including overtime, bonuses, and certain benefits. For workers paid hourly, the AWW is calculated by multiplying the hourly rate by the average number of hours worked per week. For salaried employees, it is based on the weekly portion of their annual salary.
New Jersey law mandates that temporary disability benefits equal 70% of the worker’s AWW, up to a maximum set annually by the state. In 2025, for example, the maximum weekly benefit is adjusted according to statewide average wages.
If an employee works multiple jobs, wages from all jobs may be considered when calculating the AWW. Importantly, fringe benefits like health insurance or retirement contributions are typically excluded from wage calculations unless otherwise specified in the employment agreement.
Accurate wage calculation is critical to ensuring workers receive the correct compensation during recovery. Mistakes in calculating workers comp wages can delay benefits or result in lower payments, so professional guidance is often recommended.
Conclusion
While it is possible to handle a workers’ compensation claim on your own, working with an attorney increases the likelihood that you will get the full amount of benefits that you deserve. Having legal representation levels the playing field — and protects your interests throughout the process.
