New Jersey’s wage hike has a hidden effect that could improve injured workers’ financial stability. This adjustment means more than just higher pay; it affects workers’ compensation in ways that matter to you and your loved ones.
New Jersey raised its minimum wage to $15.13 an hour in January 2024. This rate applies to most workers in the state. It’s part of a plan that started with a 2019 law. This wage hike improves the standard of living for many, but it changes workers’ compensation differently for each person.
While most New Jersey workers can look forward to this increase, some small businesses and seasonal jobs have different rates. The law also sets special protections for those with unique earnings structures, such as tipped workers, to ensure they meet the state minimum wage.
With wages expected to go up yearly based on living costs, employees and employers alike will want to understand how this can directly affect the calculation of workers’ compensation benefits.
How it affects your workers’ comp benefits
New Jersey uses your average weekly wage to figure out your benefits. The new minimum wage could alter your benefits in several ways:
- If you can’t work due to injury, you may get 70% of your weekly salary up to a limit.
- Long-term partial benefits depend on your wages and how bad your injury is.
- You might get long-term benefits for career-ending injuries based on your old pay.
These benefits are tax-free. The wage increase might also help you qualify for higher benefits.
Ways to ensure fair workers’ compensation
The new minimum wage doesn’t automatically adjust existing claims on its own. If you receive benefits now, you need to take steps to ensure they match your wage increase:
- Talk to your claims adjuster or workers’ compensation attorney about new benefit amounts
- Keep accurate records of your pay and work hours
- Tell your boss right away if you get injured at work
There are time limits to filing workers’ compensation claims. Don’t delay asking for help if you’re injured. Check if the wage increase also changes your employer’s insurance and workplace safety rules.
Understanding workers’ compensation laws can be challenging. If you’re unsure about your rights, consider talking to a workers’ compensation attorney. They can help you calculate and pursue all the benefits and compensation you’re entitled to.