Can You Sue After a Work-Related Car Crash in NJ?

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If you’ve been injured in a car accident while performing your job duties in New Jersey, you’re probably facing a lot more than just physical pain. Between doctor’s appointments, lost wages, and confusing paperwork, it’s natural to ask: Can I sue the other driver, even if I’m getting workers’ compensation?

In many cases, yes—you can sue. New Jersey law allows injured workers to pursue a third-party lawsuit if someone other than their employer was at fault. This guide breaks down your legal rights, explains how dual claims work, and helps you understand what steps to take next.

 

What Counts as a Work-Related Car Accident in New Jersey?

Accidents During Work Tasks

A car accident is classified as “work-related” when it happens while you’re performing your job duties. This could include making deliveries, driving between job sites, attending off-site meetings, or transporting coworkers or materials as part of your employment.

Commuting Usually Doesn’t Count

In most cases, commuting to and from work isn’t covered under workers’ compensation. However, there are exceptions. For instance, if you’re a traveling employee or required to use your vehicle as part of your job, your commute could fall under work-related activities.

Understanding whether the accident occurred within the scope of employment is the first step in determining your eligibility for compensation and potential legal action.

 

Workers’ Compensation Coverage in NJ Car Accidents

No-Fault System Benefits

New Jersey workers’ compensation is a no-fault system. If your injury happened on the job, you don’t need to prove that anyone was at fault to receive benefits. You’ll be covered for:

• Medical expenses
• A portion of lost wages
• Temporary or permanent disability, depending on your injury

What It Doesn’t Cover

However, workers’ compensation does not include:

1. Pain and suffering
2. Emotional distress
3. Full wage replacement
4. Loss of enjoyment of life

If someone else caused the accident, you may be entitled to additional compensation by filing a personal injury lawsuit.

 

Can You Sue a Third Party If You’re on Workers’ Compensation?

Suing Someone Other Than Your Employer

Yes, in New Jersey, you can sue a third party responsible for the accident while still collecting workers’ compensation. This third party could be:

• Another driver
• A subcontractor on a shared job site
• A car manufacturer or repair shop (if a defect caused the accident)

Workers’ compensation and third-party claims operate independently, meaning you don’t have to give up one to pursue the other.

Why You Might Want to Sue

A third-party personal injury lawsuit gives you access to damages that workers’ compensation doesn’t provide—such as pain and suffering or the full cost of lost future earnings. In many cases, this route offers more complete financial recovery.

 

Understanding Dual Claims in New Jersey

What Is a Dual Claim?

A dual claim occurs when you file both:

1. A workers’ compensation claim for job-related benefits, and
2. A personal injury lawsuit against a third party who caused your injury.

This dual route is perfectly legal in New Jersey and often necessary to cover all the losses a worker experiences after a serious accident.

How a Dual Claim Helps

By combining both types of claims, you can receive immediate medical care and wage assistance through workers’ compensation, while also seeking long-term compensation for personal damages through the lawsuit. It’s a strategic way to maximize your recovery.

 

Subrogation: What You Need to Know

What Is Subrogation?

Subrogation allows your employer’s workers’ compensation insurer to reclaim some of the money they paid you if you also recover damages from a third-party lawsuit. If your personal injury claim is successful, you may be required to reimburse the insurance company.

Why This Shouldn’t Stop You

Even after subrogation, many injured workers come out financially ahead because personal injury lawsuits can lead to large awards for pain and suffering, emotional distress, and more. Plus, a skilled attorney may be able to negotiate a lower reimbursement amount on your behalf.

 

Common Scenarios Where You Can Sue

1. Driving a Company Vehicle

If you’re driving a company-owned car and another driver causes a crash, you may have a strong dual claim case. Workers’ compensation will cover your injury, and you can sue the negligent driver for personal damages.

2. Rideshare and Delivery Drivers

If you drive for work—whether you’re a delivery driver, rideshare driver, or courier—you’re especially vulnerable to car accidents. Depending on whether you’re classified as an employee or independent contractor, your legal rights may vary. Either way, you should speak to an attorney about your options.

3. Off-Duty vs. On-the-Clock

If the accident occurred during personal time or while running a non-work-related errand, workers’ compensation likely won’t apply. However, you might still have the right to file a personal injury claim against the at-fault driver.

 

What Can You Recover Through a Lawsuit?

Going Beyond Workers’ Compensation

A personal injury lawsuit allows you to recover damages that workers’ compensation doesn’t cover. These may include:

1. Pain and suffering
2. Emotional trauma
3. Future medical costs
4. Full lost income, not just a percentage
5. Loss of future earning potential

Workers’ compensation is helpful, but it often doesn’t reflect the true impact a serious accident has on your life. A lawsuit can help bridge that gap.

 

Do You Need a Lawyer to Handle a Dual Claim?

Yes—Here’s Why

Pursuing both a workers’ compensation claim and a personal injury lawsuit can be legally complex. Issues like subrogation, insurance coordination, and settlement negotiations require a detailed understanding of New Jersey law.

A lawyer can help by:

1. Filing both claims correctly and on time
2. Determining who the liable parties are
3. Negotiating with insurers and opposing counsel
4. Maximizing your compensation and reducing what you owe in subrogation

Don’t Miss the Statute of Limitations

In New Jersey, you typically have two years from the date of the accident to file a personal injury lawsuit. Waiting too long could cost you the right to sue, even if your case is strong.

 

Frequently Asked Questions (FAQ)

Can I still sue the other driver if I’m receiving workers’ compensation?
Yes, you can. In New Jersey, workers who are injured in a car accident while on the job are entitled to file a workers’ compensation claim to cover medical bills and lost wages. At the same time, if another party—such as the driver of the other vehicle—was responsible for the crash, you can also pursue a personal injury lawsuit against that person. This is known as a third-party claim, and it is fully legal and commonly pursued when the injury was caused by someone outside your employer or company.

What if my employer already paid for my medical bills and lost income? Can I still file a lawsuit?
You can still file a lawsuit against the at-fault driver or third party even if your employer’s workers’ compensation insurer has already paid you. However, under New Jersey law, the workers’ compensation insurance provider may have a right to be reimbursed from the proceeds of your third-party claim. This process is known as subrogation. While it may sound like you’ll lose a large portion of your settlement, the truth is that you may still receive additional compensation for damages that workers’ compensation does not cover—such as pain and suffering.

What if I was partially at fault for the accident?
New Jersey follows a legal standard called “comparative negligence.” This means that you can still recover damages from a third party as long as you were not more than 50% responsible for the accident. However, the amount you recover will be reduced by your percentage of fault. For instance, if you were found to be 20% at fault, your final compensation would be reduced by 20%.

Do I need my employer’s permission to sue a third party?
No, you do not need your employer’s permission to sue a third party. Your workers’ compensation claim and your third-party lawsuit are two separate legal matters. The third-party lawsuit targets the person or entity that caused the accident, and your employer is not involved in that lawsuit unless they are also partially responsible, which is rare.

What damages can I claim in a lawsuit that I can’t get from workers’ compensation?
Workers’ compensation provides limited benefits—typically medical treatment, partial wage replacement, and disability benefits. A personal injury lawsuit, on the other hand, allows you to pursue damages for pain and suffering, full wage loss, emotional distress, loss of future earning capacity, and property damage (such as to your vehicle). These types of damages can often make a significant difference in your financial recovery.

 

Contact The Epstein Law Firm, P.A., Today

If you’ve been injured in a car accident while working in New Jersey, you may be entitled to more compensation than workers’ compensation alone can provide. In many cases, pursuing a third-party lawsuit is the only way to fully recover your losses and obtain justice.

Don’t leave money on the table. These cases are time-sensitive, and your next steps could impact the rest of your recovery.

Contact The Epstein Law Firm, P.A., today for a free consultation. A qualified lawyer can assess your case, explain your rights, and help you take the right legal steps to maximize your recovery.