GOVERNOR SIGNS REFORMS TO STRENGTHEN WORKERS’ COMPENSATION SYSTEM

GOVERNOR SIGNS REFORMS TO STRENGTHEN WORKERS’ COMPENSATION SYSTEM 

LYNDHURST - Governor Jon S. Corzine today ceremonially signed a package of five bills that together strengthen the ability of New Jersey’s workers’ compensation system to protect vulnerable workers injured on the job.

In addition to expanding public representation on the Board that sets premium rates for Workers’ Compensation insurance, these bills also provide greater flexibility to address emergent medical needs and provide timely medical care.  They provide enhanced authority for judges of compensation to enforce their decisions and they will help ensure that employees working in New Jersey are properly protected with Workers’ Compensation insurance.

 “With today’s bill signing, we are addressing issues between workers and their employer’s insurance companies before a complaint is even filed,” said Governor Corzine.  “We’re taking steps to make a cost effective and efficient system even better so that injured workers receive the compensation they deserve.”

“Thanks to the leadership of Senator Paul Sarlo and other key legislators, New Jersey now has a tough new set of laws designed to protect injured workers and bolster a 97 year-old workers’ comp system.”

New Jersey employers are statutorily obligated to provide their employees with all reasonable and necessary medical treatment for work-related injuries. This system provides the injured employee with vital medical treatment and wage replacement benefits to sustain the worker until he or she can get back to work. In 2007, New Jersey employers reported nearly 200,000 work-related accidents.

“Today, we are witnessing a positive response to changing a basically good system to make it even better,” said Senator Paul Sarlo (D-Bergen), Chairman of the Senate Labor Committee who called for hearings which initiated the reforms of the workers’ compensation system. “We gave workers’ comp judges the power they need to crack down on the bad players in the system while ensuring greater fairness to both workers and employers.

“The sanctions in this reform program should make it untenable for companies to forego workers’ comp coverage for their employees and it also makes it a lot more uncomfortable for workers who try to game the system,” added Sarlo. “Now, proof of coverage under the workers’ comp system will be a condition for doing business in New Jersey.”

 The first bill, S1917/A2969, revises membership of the Compensation Rating and Inspection Bureau and further clarifies its authority. Public representation on the governing board is expanded by three members representing labor, business and the general public. 

“Each year thousands of New Jersey’s workers injured on the job find that they can’t make ends meet when their workers’ comp benefits are held up by bureaucratic red tape or the courts,” said Assemblyman Joseph V. Egan (D-Middlesex), chairman of the Assembly Labor Committee. “This is simply unacceptable. These are hard-working people and they deserve – if not absolutely depend on – access to these benefits.”

Primary sponsors of the bill include Paul Sarlo (D-Bergen) and Sean T. Kean

(R-Monmouth) in the Senate and  Joseph V. Egan (D-Middlesex/Somerset), Thomas P. Giblin (D-Essex/Passaic), Peter J. Barnes III (D-Middlesex) and Elease Evans (D-Bergen/Passaic) in the Assembly.

A second bill, S1916/A2968, ensures that Workers’ Compensation cases involving emergent medical issues are heard in a timely manner and that treatment and compensation is delivered when it is needed. As a result, claims involving a worker who is denied medical treatment will be prioritized when a doctor certifies that immediate care is needed.

Primary sponsors include Paul A. Sarlo (D-Bergen) and Joseph Pennacchio (R-Morris/Passaic) in the Senate and Joseph V. Egan (D- Middlesex/Somerset), Thomas P. Giblin (D- Essex/Passaic) and Peter J. Barnes III (D- Middlesex) in the Assembly.

Bill S1915/A3059 ensures that all eligible workers are covered by their employers by requiring employers to submit proof of workers’ compensation coverage on their annual reports filed with the Department of Treasury.

Primary sponsors include Paul A. Sarlo (D-Bergen) and Sandra B. Cunningham (D-Hudson) in the Senate and Joseph V. Egan (D- Middlesex/Somerset) and Thomas P. Giblin (D- Essex/Passaic) in the Assembly.

“By strengthening the penalties for breaking the law and ignoring the requirement to offer workers’ compensation insurance, we will ensure hard working New Jerseyans who get injured on the job have coverage in their time of need,” said Assemblyman Peter Barnes III (D-Middlesex).

 Another bill, S1914/A2967, strengthens enforcement against employers for failure to provide workers’ compensation coverage. Employers who fail to provide workers’ compensation will be subject to enhanced administrative and criminal penalties. 

Primary sponsors include Paul A. Sarlo (D-Bergen) and Sandra B. Cunningham (D-Hudson) in the Senate and Joseph V. Egan (D- Middlesex/Somerset ), Thomas P. Giblin (D- Essex/Passaic) and Peter J. Barnes III (D- Middlesex) in the Assembly.

The final bill, S1913/A2966, increases the power of judges of compensation and provides them with the necessary tools to enforce workers’ compensation law against insurers, employers or attorneys who fail to comply with a judge's orders or deadlines.

Primary sponsors of the legislation include Senators Paul A. Sarlo (D-Bergen) and Fred H. Madden Jr., (D-Camden/Gloucester) and Joseph V. Egan (D- Middlesex/Somerset) and Thomas P. Giblin (D- Essex/Passaic) in the Assembly.

“These new laws reform the workers’ comp system from all angles,” said Assemblyman Tom Giblin (D-Essex). “From giving judges more power to police insurers and employers who fail to do their due diligence, to increasing penalties against employers who fail to purchase coverage, this package is strong and it will make a tremendous difference.”

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