Illegal for Employer to Retaliate for Workers' Compensation Claims

New Jersey law prohibits employer retaliation for workers' comp claims. Learn your rights and what to do if your employer retaliates against you.

Illegal for Employer to Retaliate for Workers' Compensation Claims

You were hurt on the job, and you are hesitating to file the workers' compensation claim because you are afraid of what your employer will do. New Jersey law speaks to that fear directly: retaliating against an employee for claiming workers' compensation benefits is unlawful, and it can expose the employer to reinstatement, lost wages, fines, and even jail time. A federal lawsuit against the Newark Housing Authority shows how these disputes play out.

By Michael Gorny, Esq.

In the lawsuit, filed in March 2015, former NHA employee Cheryl Goins claimed, among other things, that her supervisors caused her post-traumatic stress disorder and retaliated against her for refusing to participate in illegal activity. She also claimed that she was forced to work in a building that aggravated her asthma. According to the complaint, when she attempted to file a workers' compensation claim for her injuries and missed time from work, she was not only denied benefits but also retaliated against for pursuing them.

Whether or not those particular claims hold up, the case highlights an important aspect of New Jersey workers' compensation. Injured employees often fear retribution from their employers for seeking benefits. Retaliating against a worker for filing a claim exposes the employer to a lawsuit and even criminal charges. The statute, N.J.S.A. 34:15-39.1, states: "It shall be unlawful for any employer or his duly authorized agent to discharge or in any other manner discriminate against an employee as to his employment because such employee has claimed or attempted to claim workmen's compensation benefits from such employer, or because he has testified, or is about to testify, in any proceeding under the chapter to which this act is a supplement. For any violation of this act, the employer or agent shall be punished by a fine of not less than $100.00 nor more than $1,000.00 or imprisonment for not more than 60 days or both. Any employee so discriminated against shall be restored to his employment and shall be compensated by his employer for any loss of wages arising out of such discrimination; provided, if such employee shall cease to be qualified to perform the duties of his employment he shall not be entitled to such restoration and compensation."

Keep the injury report, claim paperwork, discipline notices, schedule changes, and communications that followed the request for benefits. The timing and stated reason for an adverse employment action matter to a retaliation claim.

The denied and disputed claims guide outlines the records and hearing path when an employer or carrier contests benefits.

Reviewed by

Britt J. Simon, Esq.

Managing Partner

Simon Law Group, LLC

Reviewed May 25, 2026

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