Gov Signs Workers Compensation Bills
Yesterday, Governor Corzine signed five bills into law that will bolster New Jersey's Workers Compensation system. The Star-Ledger exposed systematic errors that caused years of delayed payments due to the state's bureaucracy and employers gaming the system. State lawmakers that crafted the changes worked to help ensure the changes pursued bad actors while not harming innocent businesses, which is why CIANJ supported some of the measures.
Explanation of the changes as detailed by New Jersey Law Journal,
• S-1913 permits workers comp judges to hold a separate hearing on any issue of contempt, and if contempt is found, the successful party can file a motion in Superior Court for enforcement. A judge may also impose costs and simple interest on money due and, in the event of an unreasonable delay, may award legal fees of up to 20 percent of the award.
• S-1914 strengthens enforcement actions against employers for failure to provide workers’ comp coverage. Those employers that knowingly fail to provide coverage can be charged with a second-, third- or fourth-degree crime and can be fined up to $5,000. Employers that fail to report workplace incidents to the Division of Workers’ Compensation without reasonable cause could be assessed penalties of up to $1,000.
• S-1915 requires all employers to submit proof of workers’ comp coverage as part of its annual report. If a statement of proof is not included, the annual report will not be considered as properly filed.
• S-1916 says that when a doctor states that an injured worker is in need of emergent medical care that the employer has not authorized, the worker can file a request for treatment with the Division of Workers’ Compensation. The division and the employer must answer the request within five calendar days.
The bill also requires workers’ comp carriers to designate a contact person to handle requests for emergency treatment. Noncompliance carries a potential fine of up to $2,500 per day.
• S-1917 revises the membership of the Compensation Rating and Inspection Bureau, presently made up primarily of insurance industry representatives. The bill requires the Department of Banking and Insurance to include members who do not represent the industry but rather representatives of employers, labor and licensed insurance producers.
