Lien Recovery under Section 40

Section 40 lien reimbursements now allow for a reduction of up to $750 for petitioner’s expenses where a petitioner has recovered money in a third-party suit. Petitioner’s expenses were previously limited to a reduction of $200. This change has been codified at N.J.S.A. 34:15-40. The upshot: workers’ compensation insurers will now recover slightly less from claimants who receive an award or settlement in a third-party suit.