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New Jersey Workers Compensation at a Glance
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 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.
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.
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.
Frequently Asked Questions
How much does Workers' Compensation pay employees in NJ?
Workers' Compensation coverage for temporary income in New Jersey is available to workers who miss more than 7 days of work due to their work-related injuries and pays 70% of that worker's gross weekly wages, up to a maximum weekly amount that changes each year.
Where can I buy Workers' Compensation in New Jersey?
You can purchase required Workers' Compensation coverage through an agent or broker, or online using a portal such as CoverWallet, which can also provide other essential insurance policies for your business. Unlike some other states, New Jersey does not offer a state fund, but businesses having trouble finding coverage can utilize New Jersey’s assigned risk pool, which will place their business with a carrier.
How Much Does Workers' Compensation Insurance Cost in New Jersey?
New Jersey utilizes its own rating bureau, the New Jersey Compensation Rating and Inspection Bureau (NJCRIB) to help determine Workers' Compensation rates for businesses in the state. Similar to the factors used to determine rates in other states, the type of industry, claims history, and payroll all effect Workers' Compensation costs, causing rates to vary depending on your specific business.
What is covered by New Jersey Workers' Compensation?
Workers' Compensation coverage in New Jersey provides medical treatment and income replacement for workers injured on the job or suffering from work-related illnesses. Income replacement of up to 70% of the worker's average gross wages is paid, provided that the work injury prevents an employee from returning to work. Death benefits to surviving dependents are also available for workplace injuries resulting in death.