Workers Compensation New Jersey

New Jersey Workers Compensation at a Glance

• New Jersey Specific Requirements for Workers’ Compensation

  The State of New Jersey requires all employers except those covered by federal programs for those approved for self-insurance to carry Workers’ Compensation coverage. This requirement applies to all NJ businesses with one or more employees, excluding the principal owner, and they also apply to out-of-state businesses who have work performed in New Jersey.

• New Jersey Workers’ Compensation exceptions

  New Jersey allows exceptions to its Workers' Compensation requirement for a business's principal owner and in cases where a business is approved by the state for self insurance, the latter of which is typically reserved for larger corporations doing business within the state.

• Inform employees and new hires about Workers’ Compensation

  Like many states, New Jersey requires that employers post a notice in a common area that explains the basic benefits of Workers’ Compensation coverage. Employers must also keep records of any work-related injuries and promptly report any work-related injuries or illnesses to their insurer.

• Avoid New Jersey penalties for failure to insure workers

  Even without a work-related injury, New Jersey law deems a failure to insure workers as a criminal offense with penalties of up to $5,000 for the first 10 days and another $5,000 for each additional 10 day period during which an employer does not carry required Workers' Compensation coverage. In cases involving work-related injuries without the required coverage, the employer and its corporate officers can be held liable.