Are New Jersey Employers Required to Have Workers’ Compensation Insurance?

Workers’ compensation insurance is a vital component for both businesses and employees. It’s intended to address workplace injuries and illness.

Are employers in New Jersey required to provide workers’ compensation coverage for their employees? Here’s what you need to know.

Do NJ Employers Need to Have Worker’s Compensation Insurance?

Yes. New Jersey law requires all employers who hire one or more employees, whether full-time, part-time, or seasonal, to carry workers’ compensation insurance coverage. This applies to both public and private employers, regardless of whether the employment is in the form of a contract of hire, apprenticeship, or written or oral agreement. The only exception to this requirement is if the employer qualifies for exemption under state law.

In New Jersey, workers’ compensation benefits are governed by the New Jersey Workers’ Compensation Act.

Failure to carry workers’ compensation insurance coverage in New Jersey can lead to fines, civil penalties, and even criminal penalties. If an employer knowingly fails to provide coverage, they can be fined up to $5,000 for each day of noncompliance.

Additionally, the employer could face a range of civil penalties, including suspension of business licenses. And, if an employee sustains work-related injuries, the employer could face legal action for damages.

Who Provides Workers’ Compensation Insurance?

Employers in New Jersey can obtain workers’ compensation insurance through private insurance providers or the New Jersey Workers’ Compensation Insurance Plan. This plan allows employers who are unable to obtain coverage through the private market to secure insurance through the state-run program.

The Department of Banking and Insurance sets the insurance premium rate annually. It’s based on the employer’s industry classification, payroll, and experience modification rating.

What Does Workers’ Compensation Insurance Cover?

Workers’ compensation benefits in New Jersey can cover medical expenses, temporary or permanent disability benefits, and death benefits for surviving dependents. Injured employees have a limited time in which to file a workers’ compensation claim with their employer after an injury or illness. Employers must report workplace injuries to their insurance carrier within ten days of notice or knowledge of the injury. Failure to do so can result in fines and other penalties.

Speak to a Workers’ Compensation Attorney

Working with an experienced workers’ compensation attorney ensures you won’t miss any deadlines. They can also help you should the insurance provider deny your claim.

Employers in New Jersey must carry workers’ compensation insurance coverage for their employees. This is the case unless they qualify for an exemption under state law. Failure to do so can result in severe penalties and legal action.

Employees who sustain work-related injuries can receive medical benefits and workers’ compensation benefits. It is important for New Jersey employers to understand their obligations under the state’s workers’ compensation laws. They must secure adequate insurance coverage.

For more information about workers’ compensation or to speak to someone about your workplace injury, contact Livingston DiMarzio Brown, LLP at (973) 943-4961.