If you’re a New Jersey small business owner, chances are you’ll need workers’ compensation insurance to protect your employees.
We know running a small business can be demanding, so we’ve distilled New Jersey’s workers’ compensation requirements down to the basics. That way, when you’re ready to get coverage for your employees, you’ll be informed and prepared to ensure you’re in compliance with the law.
Laws change and every business situation is different, so be sure to consult your workers’ comp agent and/or legal counsel to confirm your business is meeting the requirements.
*Data below pulled from the State of New Jersey Department of Labor and Workforce Development.
- In New Jersey, corporations, partnerships, LLCs, and sole proprietorships must have workers’ compensation insurance or self-insurance if they have one or more employees.
- Partners, LLC members, and principal owners may exempt themselves from workers’ compensation coverage by filing the required documentation.
- Although principal owners of sole proprietorships, partners, and LLC members are not required to be covered under workers’ compensation insurance, they may elect to obtain coverage.
- Getting workers’ compensation coverage is a wise decision, even if you’re not required to have it by the state of New Jersey. Workers’ comp can provide valuable protection for you, your employees, and your business should you or a worker be injured on the job.
- To obtain workers’ compensation insurance in New Jersey, you can purchase coverage from any of more than 400 private, commercial insurers who are licensed in the state. You can also apply to be self-insured by contacting the state workers’ compensation board.
- As an employer, you must post notices naming the company insuring its compensation liability “in a conspicuous place or places in and about the employer’s place of business.”
- New Jersey workers’ compensation rates are set by the Compensation Rating and Inspection Bureau of the Department of Banking and Insurance.
- In New Jersey, employers must report accidents to their insurance carrier immediately, and insurance carriers must then electronically file a “first notice of accident” with the Division of Workers’ Compensation through the Compensation and Rating and Inspection Bureau.
- In New Jersey, misrepresenting payroll or improperly classifying employees by failing to obtain workers’ compensation insurance coverage is considered workers’ compensation fraud. It is punishable by a $10,000 fine, up to 18 months in jail, and substantial civil penalties.
- The state organization that enforces workers’ compensation laws is the NJ Division of Workers’ Compensation, which is part of the State of New Jersey Department of Labor and Workforce Development.
If navigating New Jersey’s workers’ compensation rules seems complicated, we can help! We’ve taken the guesswork out of the insurance process, and we’re passionate about providing affordable workers’ comp insurance for small businesses across the country.
Pie Insurance is proud to be a licensed provider of workers’ compensation insurance in New Jersey.
Remember, every situation is different and state workers’ compensation laws are subject to change, so be sure to do your research and speak with a trusted advisor.
Thanks for reading! Please note that this content is intended for educational purposes only. As laws change regularly, you should refer to your state legislation and/or an advisor for specific legal counsel. If you’re a small business owner, learn more about workers’ compensation insurance or check your current rate in 3 minutes.
