Individuals can file a lawsuit alleging discrimination and file a separate claim for Workers’ Compensation.  We frequently have clients who have both a discrimination lawsuit and workers’ compensation claim.  When one of the matters settles, our clients are typically concerned regarding whether the settlement of one lawsuit includes the other lawsuit.

The New Jersey Appellate Division recently ruled in Passaic Beth Israel Hospital v. Perez, that the settlement between the parties resolved only plaintiff's claims of discrimination and wrongful termination and did not encompass the workers' compensation action.  The evidence relating to the settlement agreement's meaning supported the plaintiff's contention that the settlement did not incorporate the compensation action.  However, the settlement agreement did not specifically address the Plaintiff’s workers’ compensation claim.

This opinion should reiterate the need to make settlement agreements specific regarding the claims that are being settled.  Any ambiguity may be construed in a manner that was never discussed or intended by the parties to the agreement.

For more information contact our New Jersey Discrimination Lawyers and read Filing an Employment Lawsuit and Workers' Compensation Claim.

March 10, 2010 - Tom McKinney - Castronovo & McKinney, LLC - NJ Employment Attorneys