South Jersey Workers’ Compensation Attorneys Petrillo & Goldberg Discuss Loans to Injured Workers by Pre-Settlement Companies
Jun 28, 2018
Pennsauken, NJ (Law Firm Newswire) June 28, 2018 – New Jersey has seen an increase in the amount of cases in which injured workers have been advanced money by private pre-settlement companies prior to their workers’ compensation settlements. These are companies that make private loans to workers who have been injured, then try to make an appearance at settlement and judicially enforce the amount that is owed their company.
Child support liens and temporary disability benefit (TDB) liens are considered legal obligations in New Jersey. In addition, medical providers have a statutory right to file a claim for payment in New Jersey. However, the statute does not allow pre-settlement companies to appear in court as a party to safeguard their loans.
South Jersey personal injury attorneys Petrillo & Goldberg say, “Pre-settlement funding may be appropriate if the injured worker cannot perform their job responsibilities, has diminished income, or has incurred expenses relevant to care or disability because of the injury.” “However, because of the exorbitant fees associated with pre-settlement funding, it should be viewed as a last resort.”
Such companies do not make loans in an effort to be generous. They make these loans in order to benefit financially at the expense of the worker who suffered an injury. It is possible that the practice of loaning a settlement to an injured worker in return for a later reimbursement is in violation of the New Jersey Workers’ Compensation Act, under which only a Judge of Compensation is able to give approval of a settlement.
Furthermore, placing a loan on an Occupational Assessment Service (OAS) conflicts with the rules against commutations. An employer is not allowed to make a commutation in New Jersey without filing a motion and securing permission from the court. All payments are made to the petitioner pursuant to the OAS.
Learn more at http://www.petrilloandgoldberg.com/
Petrillo & Goldberg Law
6951 North Park Drive
Pennsauken, NJ 08109
19 South 21st Street
Philadelphia, PA 19103
70 South Broad Street
Woodbury, NJ 08096
- Workers’ compensation for worker who contracted Legionnaires’ Disease
A Pennsylvania court ruled that a man who became disabled after developing Legionnaires’ Disease, is entitled to workers’ compensation and medical benefits. Shawn Gillen said he contracted Legionnaires’ Disease as a result of exposure to contaminated water while he was performing his job responsibilities at Nestle USA Inc. According to court records, Gillen was stationed […]
- Settlement of labor law accusations against six South Jersey gas stations
According to their U.S. Labor Department, the proprietors of six South Jersey gas stations will pay over $460,000 to employees who worked 70 hours per week for an amount below the minimum wage, and received no compensation for overtime. USA Gas station owners Prabhit Singh and Harbir Piar were alleged to have violated the department’s […]
- Governor Christie says he will approve back pay for furloughed workers during government shutdown
New Jersey Governor Chris Christie said he would approve legislation to restore compensation for workers who were laid off when the state government was shut down. This marked the second shutdown in the history of the state. A representative from his office said he does not possess the authority to do this on his own. […]
- Long wait for survivor benefits for the spouse of volunteer
Following the death of Scott Danielson, a member of the Lakeland Ambulance Squad and Andover Borough Councilman, his wife was left with a number of financial setbacks. Although it has been a year and a half since her husband’s death, she has yet to receive survivor benefits from the state. Shortly after her husband’s death, […]
- Settlement in retaliation suit grants city employee $75K
A city worker who claimed he was demoted and terminated after filing two workers’ compensation claims for injuries sustained at work has settled his lawsuit against Galloway for $75,000. Frank Chamberlain stated he received negative reviews from his supervisors and many disciplinary notices after he filed the second workers’ compensation claim in 2011. The suit […]