Committee Advances Invoice Permitting Sure Small Companies to Forgo Staff’ Compensation

Assembly woman BettyLou DeCroce

PARSIPPANY – Small businesses and startups that are mandated to acquire workers’ compensation despite the shortage of workers may find some relief from the legislation put forward by the Assembly Working Committee today.

The Bill (A508), sponsored by Rep. Betty Lou DeCroce and Rep. Jay Webber, revises the definition of employer in the Workers’ Compensation Act. Partnerships consisting of two partners or S-companies with only one employee, who is also the sole shareholder, could save unnecessary coverage.

“Our small businesses are struggling to stay afloat in the face of the coronavirus shutdown and the time has come to remove this inappropriateness of mandate that is affecting their viability,” said DeCroce (R-Morris). “The revision of the Workers’ Compensation Act so that companies without workers can save unnecessary coverage is one way our state can support their success.”

About three in ten small businesses in the state have closed during the coronavirus crisis.

“To fuel economic recovery, New Jersey needs to increase its support for small businesses,” DeCroce continued. “It’s important to find ways to help the owners at every stage – the startups trying to get going, small businesses that need help to get out of this crisis, and those that are growing want. With this bill, small businesses can save on excessive insurance and spend that money on efforts to better achieve their goals. “

Currently, if the insurance is not properly taken out, it could result in fines of up to $ 5,000 for the first 10 days and up to $ 5,000 every 10 days thereafter. It is classified as a disorderly person’s offense and, if found to be intentional, a fourth-degree crime.

The Senate unanimously passed the law (S967) on February 10th.