In New Jersey’s workers’ compensation system, specific monetary values are assigned to different anatomical regions affected by work-related injuries. This valuation process is critical in determining the financial compensation awarded to injured employees. For instance, the permanent loss of function in an arm will result in a different monetary award than the permanent loss of function in a finger, reflecting the varying degrees of impact on the employee’s overall capabilities and livelihood. The schedule of payments for these impairments is defined within the state’s workers’ compensation laws.
The objective valuation of physical impairments provides a degree of objectivity and consistency in the compensation process. This systematic approach aims to ensure equitable treatment for injured workers across diverse occupations and industries. The establishment of standardized values also helps to streamline claims processing, potentially reducing disputes and accelerating the payment of benefits. Historically, the move toward scheduled losses stemmed from a need to address inconsistencies and perceived unfairness in the earlier, more subjective assessment methods. The scheduled loss system brought more predictability and transparency to the determination of impairment benefits.
