Everything You Need to Know About Workers Comp in New Jersey

Workers’ compensation in New Jersey is designed to offer coverage for employees who provide their services while also protecting employers and encouraging them to carry workers’ compensation insurance. New Jersey does some things a little differently than other states to ensure that every worker who qualifies has access to NJ workers’ compensation insurance. 

For instance, the State Boards conduct cross-matches of employer records to identify possible employers without NJ workers’ compensation insurance. These employers receive a formal letter demanding that they obtain adequate NJ workers’ compensation insurance coverage. 

They have also established a hotline where people can report non compliant employers by phone or via email. NJ workers’ compensation insurance is serious business, and there are some other things you may need to know as an employer.

NJ Workers Compensation Insurance Worksite Form

NJ employers must post a specific form in a conspicuous place accessible by all employees. It’s really more of a sign stating that the employer carries NJ workers’ compensation insurance. The sign can be requested from insurers, usually for free. It must include the name of your NJ worker’s compensation insurance carrier along with other information required by the Department of Banking and Insurance. 

Periodically Provide WC Information

Employers are required to explain NJ workers compensation insurance benefits and coverage to employees when they are hired and periodically throughout employment. You must also let employees know how and when to report an injury on the job and to whom they must report it. 

The last bit of information you must convey to employees is where they should go to seek medical treatment for injuries sustained while on the job. Remember, this information about their NJ workers’ compensation insurance coverage and benefits must be given to them at hire as well as periodically throughout the calendar year. 

Defining Employees

For the purpose of providing NJ workers’ compensation insurance benefits, employment or the definition of an employee is determined on a case-by-case basis. The state of New Jersey is attempting to provide NJ workers’ compensation insurance coverage to more workers by modifying the definition of an employee only for this purpose. 

The ‘control test’ determines that a worker is an employee entitled to NJ workers’ compensation insurance benefits if the employer or business retains the right to supervise how work is performed. Under the ‘relative nature of the work test’ employment exists if the work performed is an integral part of company activities and the individual performing the work relies solely on the income generated from such company activities.

Comprehensive NJ Workers Compensation Insurance

NJ workers’ compensation insurance is a comprehensive element in the business economics of the state, and employers must proactively stay compliant. It operates a little differently than many states but generally provides the same coverage. Modifying the definition of an employee for the specific purpose of extending coverage allows a greater number of workers to be protected. Employers must remember to post the relevant NJ workers’ compensation insurance information and ensure employees understand exactly where to go to seek medical treatment in the event of an on-the-job accident. Taking steps to be compliant ensures the safety of all New Jersey employees.