Expanding Parking Lot Law Increases Workers’ Comp Exposure

An area of workers’ compensation that has grown in controversy over the years is when is an employee considered to be ‘at work.’

A question arises if an employee is injured when in a parking lot outside of their place of employment either starting their day or leaving after clocking out.

Depending on the workers’ compensation law in your state, this type of injury may not be a compensable work-related accident. However, some states are changing legislation to expand the boundaries of workers’ compensation to allow for more covered areas putting a greater burden on the employer and its workers’ compensation carrier to ensure against accidents in areas over which they have no control.

On January 10, 2022, New Jersey Governor Phil Murphy signed Senate Bill 771, significantly impacting current workers’ compensation law in that state.

In New Jersey, the law was consistent for over a decade or so. An injured worker was entitled to workers’ compensation benefits for an accident ‘arising out of and in the course of employment.’ N.J.S.A. 34:15-7. Prior to 1979, the courts in the state of New Jersey applied the ‘going and coming rule’ to determine if an injured worker was entitled to workers’ compensation benefits.