New Jersey employees need to know the basics about workers’ compensation if they are going to assert their right to benefits. Schibell & Mennie, LLC can help you learn about your rights so that your employer or their insurance company does not try to take advantage of you when you are injured.
We have following locations to serve you throughout New Jersey:
Some basic workers’ comp info is provided below to get you started.
What Is Workers’ Compensation?
Workers’ compensation is a no-fault insurance program that provides benefits to workers if they are injured at work. The employer has workers’ compensation insurance either through their own insurance program or through a third-party network.
If a worker is injured or contracts an illness from work, he or she should be able to get benefits while they heal, benefits for any permanent damage, and medical expenses in most situations. These benefits should be available regardless of who is at fault.
What Does the Division of Workers’ Compensation in New Jersey Do?
In New Jersey, the main goal of the workers’ compensation program is to ensure timely and fair benefit payments for injured workers.
The Division of Workers’ Compensation in New Jersey is also required to be sure that those employers who are required to obtain and maintain workers’ compensation insurance actually do that.
They are also allowed to impose fines and other penalties if employers fail to carry out their responsibilities for workers’ compensation.
All corporations, partnerships/LLCs, and sole proprietorship must maintain workers’ compensation insurance in New Jersey, assuming they have employees that work for a fee.
There are generally two types of insurance coverage in New Jersey:
1. Insurance Policy – This type of coverage works a lot like regular automobile insurance or homeowners’ insurance. The employer purchases a plan from a third party and pays a monthly premium for the plan.
The carrier must be authorized to write insurance in New Jersey for it to be valid. The premiums will vary depending on what kind of work the employer does.
2. Self-Insurance – Some employers choose to be self-insured instead of purchasing an insurance plan. This type of insurance plan seems to work well for larger employers.
In New Jersey, the employer must apply and be approved by the Commissioner of the Department of Banking and Insurance in order to be self-insured. The Commissioner will examine the financial stability of the employer, among other things.
If an employer is self-insured, they will sometimes contract with a third-party administrator to take care of the administrative details of workers’ compensation.
The Division also provides benefits to some workers who are totally and permanently disabled because of a work-related injury. Benefits from the division “kick in” after the benefits from the employer are completely paid.
Which Workers Are Covered by Workers’ Compensation?
Only employees are included under workers’ compensation benefits. New Jersey law tries to give this as wide a range as possible. That often means that has a more expansive definition than under the Internal Revenue Code or under New Jersey unemployment laws. Sometimes those who do not appear to be employees at the outset are considered employees for workers’ compensation purposes.
There are two tests that New Jersey law will consider to determine whether you are an employee for purposes of workers’ compensation:
1. Control Test: Under this test, the law considers whether the employer supervises you and has control over how you do your work and what should be done. If they do, then you are likely considered an employee for workers’ compensation purposes.
2. Relative Nature of the Work: Under this test, the Division will consider whether the work that you are doing for the employer is an integral part of their business.
They will also take into account whether you rely on the income from the service that you provide to the employer. If these two qualifications are met, then you are likely considered an employee for workers’ compensation purposes.
There are so many facets to workers’ compensation that it is extremely difficult to summarize all of them. That is why it is so important to use a New Jersey workers’ compensation lawyer if you are hurt at work.
Meet with an Experienced New Jersey Workers Compensation Lawyer
Your attorney can walk you through all of the workers’ comp info that you need to know to assert your rights after an injury or illness.
Call Schibell & Mennie, LLC at 732-774-1000 for more information.
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