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.

Greg Lois is the managing partner of LOIS LLC and dedicates his practice to defending employers and carriers in New York and New Jersey workers' compensation claims. Greg is the author of a popular series of "Handbooks" on workers' compensation, and is the co-author of the 2016 & 2017 Lexis-Nexis New Jersey Workers' Compensation Practice Guide. Greg can be reached at 201-880-7213 or glois@loisllc.com