Key Takeaways
- New Jersey workers' compensation is mandatory for all employers with one or more employees
- Employers can obtain coverage through private insurers or self-insurance with approval
- The Compensation Rating and Inspection Bureau (CRIB) maintains classification systems and experience rating
- Benefits include medical care, temporary disability, permanent disability, and death benefits
- Failure to carry workers' compensation can result in criminal penalties and civil liability
New Jersey Workers' Compensation Insurance
New Jersey has a comprehensive workers' compensation system that provides benefits to employees injured on the job.
Mandatory Coverage
New Jersey requires workers' compensation for all employers with one or more employees:
Who Must Be Covered
| Worker Type | Coverage Required |
|---|---|
| Full-time employees | Yes |
| Part-time employees | Yes |
| Seasonal workers | Yes |
| Domestic workers | Yes (if regularly employed) |
| Independent contractors | Generally no (but classification matters) |
| Corporate officers | Yes (may elect exemption in some cases) |
Exceptions
Limited exceptions exist for:
- True independent contractors (careful classification required)
- Certain agricultural workers (limited exceptions)
- Federal employees (covered under federal programs)
Obtaining Coverage
New Jersey employers have options for workers' comp coverage:
Coverage Options
| Option | Description |
|---|---|
| Private Insurance | Purchase from admitted insurer |
| Self-Insurance | Large employers may self-insure with state approval |
| Group Self-Insurance | Trade associations may form groups |
Self-Insurance Requirements
- Must demonstrate financial ability
- Provide security deposit
- Meet ongoing reporting requirements
- Subject to state oversight
Rate Setting
New Jersey uses classification rating and experience modification:
CRIB Role
The Compensation Rating and Inspection Bureau (CRIB):
- Maintains classification codes
- Calculates experience modifications
- Collects premium and loss data
- Provides advisory rates (not mandatory rates)
Benefits
New Jersey workers' comp provides comprehensive benefits:
Benefit Types
| Benefit | Description |
|---|---|
| Medical Care | All reasonable medical treatment |
| Temporary Total Disability | 70% of wages (up to weekly max) |
| Temporary Partial Disability | 70% of wage difference |
| Permanent Partial Disability | Scheduled benefits based on body part |
| Permanent Total Disability | 70% of wages for duration |
| Death Benefits | To dependents |
Temporary Disability Benefits
- 70% of average weekly wage
- Subject to minimum and maximum limits
- Maximum set annually by state
- Waiting period of 7 days (retroactive after 7 days of disability)
Permanent Disability
| Type | Benefit |
|---|---|
| Scheduled | Set weeks based on body part lost |
| Non-Scheduled | Based on percentage of disability |
| Total | Lifetime benefits at 70% of AWW |
Second Injury Fund
New Jersey maintains a Second Injury Fund:
- Encourages hiring of workers with pre-existing conditions
- Reimburses employers for portion of disability
- Funded by assessments on insurers
- Reduces employer liability for combined disabilities
Penalties for Non-Compliance
New Jersey has severe penalties for uninsured employers:
| Penalty | Details |
|---|---|
| Criminal | Disorderly persons offense (first offense) to 4th degree crime (subsequent) |
| Civil Penalty | Fines up to $10,000 |
| Stop Work Order | Can shut down business |
| Personal Liability | Employer personally liable for claims |
| Loss of Defenses | Cannot use common law defenses |
Exam Tip: New Jersey takes workers' comp compliance very seriously. Penalties include both criminal and civil consequences.
What is the temporary total disability benefit rate in New Jersey workers' compensation?
Which organization maintains classification codes and calculates experience modifications for New Jersey workers' compensation?
What is the criminal penalty for a first offense of operating without workers' compensation insurance in New Jersey?