In 1911, the legislature enacted the Workers’ Compensation Act as a “trade-off” under which employees relinquished their right, and the necessity, to pursue common-law remedies against employers for work-related injuries. The trade-off is that the employer gains immunity from suits by employees for ordinary common law liability. Prior to enactment of this remedial social legislation, passed by many other jurisdictions at about this time, the employee would have to sue the employer to obtain medical treatment and for loss of income as the result of disablement.

There is in the act, however, an intentional wrong exception to employer immunity which allows employees to recover common law damages if they are injured by reason of their employer’s “intentional wrong.” N.J.S.A. 34:15-8 provides that if an injury or death is compensable under the Workers’ Compensation Act, no employer shall be liable to anyone at common law or otherwise for any act or omission occurring in the workplace for injury or death “except for intentional wrong.” The intentional wrong exception governs the relationship between the employee and the employer. It is not specifically directed toward the relationship between the employer and the employer’s workers’ compensation/employer liability insurer.