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Understanding workers’ compensation laws and requirements are crucial to running a smooth operation. New Jersey is a state that has very specific laws when it comes to workers’ compensation insurance. To ensure that you comply with the state, it is essential to understand these laws.Here is what you need to know about NJ workers compensation insurance.
Understanding NJ Workers’ Compensation Insurance
1. It’s Mandatory
Under New Jersey law, employers must provide workers’ compensation insurance for their employees if they have at least one employee, including part-time and seasonal employees. This includes corporations, partnerships, and sole proprietorships. There are a few exceptions to this rule, such as independent contractors.
Government agencies are not required to purchase insurance or receive approval as self-insurers but must provide workers’ compensation benefits. They can obtain an insurance policy or pool with other companies to cover Workers’ Compensation.
2. Many Benefits
Workers’ compensation benefits include medical expenses, hospital and doctor bills, and payment for lost wages. In some cases, employees may also be eligible for additional benefits, such as vocational rehabilitation or permanent partial disability benefits.
3. No At-Fault policy
If an employee is injured on the job, they are entitled to receive NJ workers’ compensation insurance benefits, regardless of who was at fault for the injury. This means that if the employee was injured because of their negligence or because of the negligence of their employer, then they are still entitled to receive workers’ compensation benefits.
4. Navigating Disputes
In a dispute over workers’ compensation benefits, the employer or the employee can request a hearing before a workers’ compensation judge. The judge will review the case and make a decision on the dispute.
5. Fraud laws
Filing a fake or exaggerated claim to get a large payout from the insurance company is serious because it lacks integrity and can damage your business’s reputation. Employees may file a false claim to secure undeserved compensation. Also, some employers may misclassify employees to avoid being sued.
Filing a false claim for workers’ compensation to get money for an illness or injury isn’t worth the risk. The consequences of insurance fraud include fines and jail time, with penalties ranging from hundreds to thousands of dollars. In setting up safe practices and clear-cut claims reporting procedures, you can help to prevent false claims from being filed against your company.
6. Failure To Insure
Not providing Workers’ Compensation coverage can lead to heavy fines regardless of whether an employee gets hurt on the job. Failure to insure is a disorderly person’s offence, and if it is determined that the failure was willful, then it becomes a crime of the fourth degree.
If a corporation fails to insure, corporate officers can be held liable. And failure to insure is not dischargeable in bankruptcy. When an employee is hurt or killed on the job, the employer may be liable for paying medical expenses, disability benefits and death benefits to that worker’s dependents.
Conclusion
If you are an employer in New Jersey, it is important to ensure that you comply with the NJ workers’ compensation insurance laws. Failure to do so can result in penalties, such as fines or even jail time.
