An Employer’s Workers Compensation Insurance Carrier can make what is referred to as a “Voluntary Tender”. A Voluntary Tender provides an injured Worker with permanent disability benefits prior to a formal award or settlement in a Workers Compensation case.
New Jersey Statute NJSA 34:15-64 states that: “When, however, at a reasonable time prior to any hearing compensation has been offered and the amount then due has been tendered in good faith or paid within 26 weeks from the date of notification to the employer of an accident or an occupational disease or the employee’s final active medical treatment or within 26 weeks after the employee’s return to work whichever is later or within 26 weeks of the employer’s notification of the employee’s death, the reasonable allowance of the attorney’s fee shall be based upon only that part of the judgment or award in excess of the amount of compensation, theretofore offered, tendered in good faith or paid.”
In practice, Workers’ Compensation insurance carriers will make voluntary tender offers on cases where it is very clear that the Petitioner (injured worker) will ultimately be awarded permanent disability benefits as a result of their work accident. The advantage to the Workers Compensation insurance carrier is that it saves the attorney fee on the amount that it pays voluntarily. Many competent Workers Compensation Attorneys will ask Respondent’s (employer’s) counsel to make a Voluntary Tender in very serious injury cases at the termination of temporary disability benefits because the Petitioner (employee) is unlikely to be able to return to gainful employment and needs some money while counsel wait the appropriate time period before scheduling permanency examinations (See 26 Week Rule Article), court scheduling and settlement negotiations before settlement or a judge’s permanency award via a trial.