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New Jersey bill targets comp subrogation claims for auto accidents

Posted On: Jul. 31, 2020 12:37 PM CST


A New Jersey bill would prohibit employers and insurers from filing a claim against a third-party to recover workers compensation benefits paid after a work-related automobile accident.

A.B. 4472, introduced by Democratic Assemblywoman Joann Downey on Thursday would prohibit the filing of a subrogation claim for a worker’s award.

The bill was introduced in response to the New Jersey Supreme Court’s May 13 decision in New Jersey Transit Corp. v. Sanchez, which held that the transit authority was not barred by workers compensation law from filing an action against a third-party for injuries sustained by its worker in a work-related car accident. In the case, the court held that the transit authority could pursue subrogation claims against the two individuals who rear-ended their worker’s vehicle in the accident.

The bill has been referred to the New Jersey Assembly’s Labor Committee.