Workers Compensation and Nonsubscriber Cases

Admittedly, that title is heavy on the Legalese. So, let’s begin this post by translating this language into English.

It’s hard to believe in 2025, but in 1925, most American workplaces were incredibly dangerous. For example, President Benjamin Harrison, who served at about that time, said that many “merican workmen. . .[are] subjected to a peril of life and limb as great as that of a soldier in time of war.” To speed compensation to injured workers, the Supreme Court approved the workers’ compensation system.

This system usually pays no-fault benefits that replace lost wages and pay reasonably necessary medical bills.

Most employers are required to purchase workers’ compensation insurance. But if everyone always did what they’re supposed to do, we’d happily be looking for other work. “Nonsubscriber” is a broad term that usually refers to uninsured employers. Sometimes, this term also applies to situations that workers’ compensation excludes.

For an Atlantic County personal injury lawyer, nonsubscriber cases are incredibly complex, mostly because these victims have multiple legal options, at least in many cases.

Negligent Co-Worker

Usually, workers’ compensation benefits apply if the work environment itself substantially caused a trauma injury or occupational disease.

A fall may be the most common trauma injury. Floor hazards, like wet spots and pulled-out desk drawers, cause many office falls. Lack of safety equipment, such as guardrails, usually causes a fall from a height.

Hearing loss may be the most common occupational disease. Many workplaces are loud enough to cause permanent hearing loss, but not loud enough to trigger mandatory state and federal workplace safety protocols.

Sometimes, co-worker negligence, as opposed to the work environment, causes such injuries or illnesses. For example, Tony might bump into Alex at the top of the stairs, or Tony might tell Alex not to wear earplugs.

In these situations, the victim may be able to file a civil claim. Additional compensation, such as money for emotional distress and other noneconomic losses, is often available in civil claims. However, civil claims aren’t no-fault claims. To obtain this additional compensation, or any money at all, a Bergen County personal injury lawyer must normally prove negligence, or a lack of care.

Technically, Tony is part of the work environment. Therefore, workers’ compensation may be an alternative as well.

Victims in this situation have a decision to make. If there’s evidence of negligence, or a lack of care, the victim could win the civil action. However, the result could be a Pyrrhic victory, as many individuals are effectively judgement proof.

Defective Product

Negligent co-workers cannot hide behind workers’ compensation laws and avoid facing the music. The same principle applies to companies who make and sell defective or dangerous products.

In New Jersey, a company could be liable for economic and noneconomic damages as a matter of law if a defect causes injury. Product defects include:

• Design Defect: The 1970s Ford Pinto may be the classic design defect case. To reduce costs, Ford put the Pinto’s unlined and unshielded gas tank behind the rear axle. As a result, the gas tank often ruptured and exploded in rear-end collisions. Executives calculated that paying lawsuit settlements was cheaper than fixing the design defect.
• Manufacturing Defect: About twenty years later, once again in a cost-cutting move, Takata started using ammonium nitrate fuel in its airbags. This compound, which is roughly the same compound Timothy McVeigh used to build the Oklahoma City bomb, is highly explosive. Takata eventually paid billions of dollars in fines and lawsuit settlements and declared bankruptcy.

A few limited defenses, such as the extreme product misuse defense, are available in these cases. But the misuse must be riding a jetski in a swimming pool or something else absurdly extreme.

The amount of evidence needed is a bigger potential drawback. These cases are very difficult to prove in court. So, once again, a workers’ compensation claim may be a better alternative in some cases.

Employer Fraud

Worker fraud cases dominate the headlines, and these cases are certainly serious. However, worker fraud affects individual claims on an individual basis. Employer fraud could affect hundreds or thousands of claims.

• False Promises: Many employers promise to pay medical bills and replace lost wages under the table if victims don’t file claims. These scams cheat victims twice. The victims themselves usually end up with nothing when employers break their promises, and they pay less money into the system, reducing benefits for future victims.
• False Statements: Other employers lie on insurance forms, usually about high-risk items, such as payroll size or amount. Alternatively, they intentionally misclassify workers as independent contractors. When insurance companies uncover these lies, they usually deny claims, leaving victims in the lurch.
• Refusal to Buy: Still other companies simply ignore the legal requirement to buy workers’ compensation insurance. Normally, they feel like they can get away with this fraud. New Jersey, like most other states, doesn’t aggressively pursue such cases.

If an employer doesn’t have workers’ compensation insurance, a civil claim is usually a victim’s only option, other than perhaps Social Security Disability. SInce the victim is forced to file a claim, the law prevents employers from using some of the best negligence defenses, such as comparative fault, in these cases.

Therefore, it’s easier to obtain compensatory damages. Additional punitive damages may be available in these cases as well. 

Reckless or Intentional Injury

By design, workers’ compensation applies to unintentional injuries. This program doesn’t apply to reckless or intentional injuries. If an Essex County personal injury lawyer can prove recklessness or ill intent, a civil claim, instead of workers’ compensation, is an option.

Recklessness is basically one step above negligence. Recklessness is an intentional disregard of a known risk, such as sending workers into a construction trench that officials have cited as unsafe. Ill intent usually involves revenge, such as sending a worker who fought for a union into an unsafe construction trench.

Circumstantial evidence is admissible in these cases. A smoking gun, like an incriminating memo, is even better evidence of recklessness or ill intent.

Reach Out to a Diligent County Lawyer

Injury victims are entitled to significant compensation. For a free consultation with an experienced personal injury lawyer in Newark, contact CourtLaw. We routinely handle matters throughout the Garden State.