What are the laws that govern workers’ compensation insurance in New Jersey?

According to the New Jersey state website

“New Jersey law requires that all New Jersey employers, not covered by Federal programs, have workers’ compensation coverage or be approved for self-insurance. Even out-of-state employers may need workers’ compensation coverage if a contract of employment is entered into in New Jersey or if work is performed in New Jersey.

The following employing entities must have workers’ compensation insurance in effect:

Corporations – All corporations operating in New Jersey must maintain workers’ compensation insurance or be approved for self-insurance so long as any one or more individuals, including corporate officers, perform services for the corporation for prior, current or anticipated financial consideration *.

Partnerships/LLC’s – All partnerships and limited liability companies (LLC’s) operating in New Jersey must maintain workers’ compensation insurance or be approved for self-insurance so long as any one or more individuals, excluding partners or members of the LLC, perform services for the partnership or LLC, for prior, current or anticipated financial consideration*.

Sole Proprietorship – All sole proprietorships operating in New Jersey must maintain workers’ compensation insurance or be approved for self-insurance so long as any one or more individuals, excluding the principal owner, performs services for the business for prior, current or anticipated financial consideration*.

* Financial consideration means any remuneration for services and includes cash or other remuneration in lieu of cash such as products, services, shares of or options to buy corporate stock, meals or lodging, etc.

Consequences for Failure to Insure

The consequences for failure to provide workers’ compensation coverage can be very significant, even without a work-related injury. Specifically, the law provides that failing to insure is a disorderly persons offense and, if determined to be willful, a crime of the fourth degree. Moreover, penalties for such failure can be assessed up to $5,000 for the first ten days and up to $5,000 for each additional ten-day period of failure to insure thereafter. In the case of a corporation, liability for failure to insure can extend to the corporate officers individually. Penalties assessed for failure to insure are not dischargeable in bankruptcy.”

What does workers’ compensation insurance cover in New Jersey?

According to the the New Jersey state website:

Workers’ compensation is a “no fault” insurance program that provides the following benefits to employees who suffer job-related injuries or illnesses.

• Medical Benefits
• Temporary Total Benefits
• Permanent Partial Benefits
• Permanent Total Benefits

It also provides death benefits to dependents of workers who have died as a result of their employment. An injured employee will receive benefits regardless of who was at fault. In exchange for these benefits, the worker cannot bring a civil action against the employer for pain and suffering or other damages, except in cases of intentional acts. For more information about workers’ compensation.

If you are injured, you should notify your employer as soon as possible. The notice may be given to your supervisor, personnel office, or anyone in authority at your place of business. Notice does not have to be in writing. If you need medical treatment, a request should be made to your employer as soon as possible. Under the NJ workers’ compensation law, the employer and/or their insurance carrier can select the physician(s) to treat injured workers for work related injuries.

Employer’s Responsibility After an Injury

Once an accident is reported to an employer, they should notify their insurance carrier immediately so that a First Report of Injury can be filed with the State. The employer’s WC insurance carrier will evaluate the claim and determine if it’s compensable under the WC law. They will contact the injured worker, the employer and the medical provider to make this assessment. If the claim is accepted, they will direct the injured worker to an authorized medical provider for treatment. If time out of work extends beyond 7 days, they will also provide the injured worker temporary disability benefits during the period of rehabilitation.

Within 26 weeks after the worker returns to work or reaches maximum medical improvement, the insurance carrier is required to submit another form to the Division called the Subsequent Report of Injury. A copy of this form is sent to the worker for their review.

How do I get workers’ comp for my New Jersey business?

Workers’ compensation insurance in New Jersey can be obtained easily through our free quote service. Once a New Jersey employer obtains workers’ comp insurance or authority to self-insure, the employer is required to post a notice of workers’ compensation insurance advising their employees of the coverage and of the employee’s right to reject this coverage. The employer is also required to supply “rejection” forms for employees.