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If you are injured or sick as a direct result of your job, you may be eligible for employee compensation in New Jersey. These benefits range from medical benefits to various disability benefits and even death benefits for your family if you die of a work-related injury or illness.
Each state has its own laws and regulations on employee compensation. Here’s a look at how things work in New Jersey.
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Companies That Must Get New Jersey Workers Comp Insurance
Here’s a look at the different types of New Jersey businesses that are required or excluded from taking out workers’ compensation insurance in New Jersey.
- All companies must maintain workers’ compensation insurance for their employees
- Sole proprietorships that operate in New Jersey and have no other employees are not required to purchase employee insurance
- Partnerships and limited liability companies operating in New Jersey are required to have workers’ compensation insurance for their employees, but that coverage may exclude partners or members of the LLC
- Domestic and farm workers are covered by the New Jersey Workers’ Compensation Act
- Workers who are considered independent contractors rather than employees are not covered by the New Jersey Employee Compensation Act
What New Jersey Workers Comp Insurance Covers
In New Jersey, employee compensation includes a number of benefits such as:
- Medical benefits. Necessary and appropriate medical treatments, prescriptions and hospital stays.
- Temporary incapacity benefits. If an injured worker is incapacitated for a period of more than seven days, he is entitled to temporary incapacity benefits equal to 70% of his average weekly wage.
- Permanent partial services. When work-related injury or illness results in partial permanent disability, benefits are available and paid weekly.
- Lasting overall benefit. If an accident at work or illness prevents an employee from returning to any type of work, he or she may be entitled to full permanent benefits. Total permanent benefits are paid weekly and are based on 70% of the employee’s average weekly wage.
- Death benefits. Relatives of an employee who dies due to work-related injury or illness may be entitled to death benefit. Death grants are weekly payments amounting to 70% of the deceased employee’s weekly wage.
Where Can You Buy Workers Comp Insurance In New Jersey?
One way to get compensation for workers in New Jersey is to get a workers’ compensation insurance company. The premiums are based on the classification of the work performed by the employees as well as the claims history and the employer’s payroll.
New Jersey has more than 400 private, licensed insurance companies authorized to sell workers’ compensation insurance. You can purchase a policy from an insurance company, insurance agent, or broker.
Another option to take out disability insurance is to take out self-insurance. With auto insurance, a company has two ways to manage the program. The company can choose whether to process its compensation claims itself or to commission a third party to implement an employee compensation program.
To self-insure for employee compensation, you must complete an application and obtain approval from the New Jersey Commissioner of the Department of Banking and Insurance. Whether or not a company is approved for self-insurance depends on how well it can meet its obligations under state law and how long it has been in operation.
Largest Workers Comp Insurance Company in New Jersey
Compensation costs for employees in New Jersey
The average cost of insurance for workers’ compensation in New Jersey is 27 cents per $ 100 paycheck for the lowest risk employees and $ 19.72 for every $ 100 payroll for the highest risk employees, according to Cerity.
Penalties for failure to maintain professional association coverage
In New Jersey, failure to provide employee compensation carries penalties of up to $ 5,000 for the first 10 days and up to $ 5,000 for each additional 10-day period of failure to insure.
These penalties cannot be imposed in bankruptcy proceedings.
For a New Jersey company, liability for lack of workers’ compensation insurance can be extended to the company’s officers individually.
When does a claim have to be reported
The employee should inform the employer of an accident at work as soon as possible, but not later than 90 days after the date of the accident.
This notification can be sent to the supervisor, the personnel office or an authorized person at the employer’s headquarters. The termination does not need to be in writing.
Tips on dealing with occupational safety and worker comp
- Create a safety program. Involve your employees in identifying hazardous work practices and potentially harmful work situations, areas and equipment. Set up security teams. Many insurance companies provide free advice to policyholders on creating and maintaining safe jobs. Use these free programs wisely.
- Start a recovery program. Establishing return programs that include minor or changed jobs can encourage workers to return to work earlier and reduce business costs. The employer should provide the injured worker’s job description to their health care provider. This can help facilitate early dismissal of the employee to a changed job.
- Get treatment from medical providers promptly. Getting medical attention immediately to an injured employee can help you get the right treatment and it can help them get back to work faster. Under New Jersey law, employers and insurance companies select medical providers to treat injured workers for work-related injuries. Choose the best medical providers for your employees.
- Maintain good communication with injured employees. Communicate regularly by phone or in person with injured employees. Stay positive and optimistic. Make sure all employees are aware of employee compensation by posting notices. Promote company practices for work-related illnesses and injuries. Let workers know which doctors they need to see for work-related claims.
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