why does workmans comp have to be repaid from a settlement ? dont you work for that insurance and shouldnt your employer have to pay that ?

Insurance companies are very powerful in NJ where Prudential has its world HQ.    In NJ if you settle a third party case, say e.g. against a machine manufacturer whose machine didn't have a guard,  some of that settlement has to be returned to the workers compensation carrier because of existing law.   Sometimes the workers compensation lien can be negotiated downwards.   Generally they want two thirds of what they paid, but there are exceptions.   Write to your legislators in Trenton and tell them to change this.