NJ Amends Workers' Compensation Law
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NJ Amends Workers' Compensation Law
In October 2008, New Jersey adopted several key amendments to its workers’ compensation system. This legislation is significant because it is the first major legal overhaul of the state's workers' compensation system within the last three decades.
According to its supporters, these amendments will expedite the processing of employee claims while preventing unnecessary delays in adjudicating requests for workers' compensation benefits.
The amendments that were signed into law by Governor Jon Corzine passed both houses of the state legislature this past summer with minimal opposition.
These new amendments modify New Jersey’s workers' compensation law as follows:
Increased Contempt Power for Workers’ Compensation Judges
Under the new law, workers' compensation judges can now hold separate hearings on contempt issues. Where contempt is found, the successful party can also bring a motion in New Jersey Superior Court to enforce the contempt ruling.
Enhanced Enforcement Measures Against Non-Compliance
The new law also enhances the kinds of enforcement actions that can be brought against employers that fail to provide workers’ compensation coverage for their work force. Employers can have fines imposed of up to $5,000.
Moreover, employers that fail to promptly report workplace incidents to the Division of Workers’ Compensation without reasonable cause can be penalized with fines of up to $1,000.
Enhanced Annual Reporting Requirement
Employers under the new law must also for the first time submit proof of workers' compensation coverage as part of the filing of their annual report to the state.
Emergency Care Procedures
Special procedures have been created for addressing situations where a doctor believes that emergency care for an employee is needed but the employer refuses to authorize such treatment. Under the new law, a worker can file a request for treatment directly to the Division of Workers' Compensation.
In addition to creating this special procedure, all workers’ compensation carriers must immediately designate a contact person to handle requests for emergency treatment or be fined up to $2,500 per day.
Revised Membership of Compensation Rating and Inspection Bureau
Currently, all members of the Compensation Rating and Inspection Bureau are representatives of the insurance industry. The new law mandates that membership must now include representatives of employers, laborers and licensed insurance producers.
Most of the changes take immediate effect. The only exceptions are the changes to the annual report requirement and the composition of the Compensation Rating and Inspection Bureau, which go into effect within 90 days and on July 1, 2009.
How Extensis Can Help
With the recent changes made to New Jersey workers’ compensation system, it is a good time for employers to ensure that all legal requirements mandated under New Jersey law are effectively met by the company.
Given these recent amendments, it will now be more critical than ever for employers to timely report workplace incidents and not intentionally engage in delay tactics to avoid claims for benefits under New Jersey’s workers’ compensation system.
Extensis is closely monitoring these changes to proactively ensure our client’s ongoing compliance. Please contact us directly to discuss any questions or additional measures you can take to effectively manage your worker's compensation costs.