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New Jersey's workers' compensation system stands as a cornerstone of protection for employees across the state, offering crucial support in times of work-related injuries or illnesses. This comprehensive system ensures workers receive necessary medical treatment, wage replacement benefits, and rehabilitation services, regardless of fault.
Workers’ compensation coverage in New Jersey ensures that workers are fairly compensated for lost wages and medical expenses.
Here’s everything you need to know about New Jersey workers’ compensation.
Workers' compensation is a state-mandated insurance program for nearly all employers in New Jersey. Employers are required to have an active policy before hiring their first employee. Coverage provides medical and financial protection for employees who suffer work-related injuries or illnesses.
Without workers’ compensation, the cost of a work-related injured employee’s medical treatment could become the responsibility of your business.
The State of New Jersey Department of Labor and Workforce Development Division of Workers’ Compensation administers the workers’ comp law in the state.
According to the New Jersey Workers Compensation Act, passed in 1911, the law requires employers with one or more employees to be covered by an active workers’ compensation insurance policy.
Businesses can obtain workers’ comp coverage through a partner like EverPeak Insurance. Alternatively, companies that meet the state’s requirements may also apply to be self-insured.
In New Jersey, workers' compensation cases are "no-fault," which means that the amount a claimant receives will not increase or decrease regardless of who was at fault.
Employees can verify online if their employer has coverage.
Policies include protection for full and part-time workers.
Some New Jersey workers’ comp exemptions include:
Workers' compensation covers a range of work-related injuries and illnesses, including physical injuries resulting from an accident and occupational diseases developed over time due to job conditions.
New Jersey workers’ comp insurance provides three types of benefits for work injuries:
New Jersey workers’ comp benefits include:
Employee workers’ comp lost wage pay is 70% of their average weekly wage.
As of 2024, the maximum New Jersey workers’ comp weekly benefit is $1,131.
In the event of a work-related injury or illness:
Employees in New Jersey should report their injury to their employer within 24 hours.
The injured worker and their supervisor must complete the Employer’s First Report of Accidental Injury and Occupational Disease together within 24 hours of the accident. The employer should promptly file this form with their workers’ comp insurance provider.
The employee should immediately seek medical attention.
If an employer’s insurance provider accepts the claim, the worker may begin receiving benefits to cover medical expenses and lost wages.
Following their recovery, the worker is to resume work safely. If a work injury has left an injured employee unable to do any type of work, the employee might be entitled to permanent disability benefits.
Employers are responsible for selecting a provider or giving a list of providers their workers’ comp insurer approves for the injured employee.
In New Jersey, if an employee cannot work for seven days (including weekends and holidays), they are eligible for temporary disability benefits. The seven days need not be consecutive.
Injured workers who disagree with the outcome of their claim can file a formal Claim Petition or an Application for an Informal Hearing with the Division of Workers' Compensation.
Unless exempt, employers in New Jersey must carry workers' compensation insurance or qualify for self-insurance. Compliance with this requirement is essential to protect both the employer and employees.
When selecting a workers' compensation insurance provider, consider factors such as the provider's experience in the industry, financial stability, coverage options, claims process, customer service, and cost.
We recommend requesting multiple quotes and comparing the offerings before making a decision.
Covering your business and employees with a trusted insurance partner — like EverPeak — brings peace of mind so you can focus on your bottom line.
In New Jersey, the penalties for businesses without workers’ compensation coverage include:
In most cases, policies bar employees in New Jersey from suing their employers for work-related injuries or illnesses. The workers' compensation system provides an exclusive remedy, meaning that employees typically cannot file a lawsuit against their employers. Instead, they must pursue a workers' compensation claim to receive benefits for their injuries or illnesses.
Generally, a business’s workers’ compensation policy does not cover independent contractors in New Jersey. Workers' compensation laws typically apply to employees rather than independent contractors.
However, it's important to note that the classification of a worker as an independent contractor or an employee can be complex, and misclassification can lead to legal disputes. If unsure whether an independent contractor should be treated as an employee, seek legal guidance.
The incident should be reported immediately or within a few days of the occurrence. Prompt reporting helps ensure the necessary steps are taken to initiate the workers' compensation claims process.
Employees can verify online if their employer has coverage.