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Workers’ Compensation Insurance in New Jersey

Workers' Compensation Insurance in New Jersey

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If your business has employees in the state of New Jersey, you’ll need to make sure you adhere to New Jersey’s Workers’ Compensation Insurance laws. Workers’ Compensation provides medical and financial benefits for employees who suffer work-related injuries or illnesses or for their survivors in the case of an employee death.

Who needs Workers’ Compensation Insurance in New Jersey?

New Jersey requires all employers with at least one employee to obtain Workers’ Compensation Insurance. In New Jersey, an “employee” is generally defined as any individual who performs services for another for wages and is not an independent contractor. 

The New Jersey Workers’ Compensation Act (WCA) defines all of the requirements for Workers’ Comp in New Jersey, and the New Jersey Division of Workers’ Compensation (DWC) monitors, enforces, and administers the program. Ensuring your company is in compliance is critical, as there are serious penalties and fines for those who fail to abide by state regulations.

What employees are covered under Workers’ Compensation in New Jersey?

Almost all workers are covered under Workers’ Compensation in New Jersey. If you provide work or services for an employer for wages, and you are not an independent contractor, you will likely be eligible for Workers’ Compensation Insurance. 

The following are categories of employees that are eligible for Workers’ Comp coverage:

The following are categories of employees that are generally excluded from Workers’ Comp coverage:

What Workers’ Compensation benefits do employees receive?

Under Workers’ Compensation in New Jersey, employers are required to provide the following benefits to employees who are injured in the course of employment:

Medical Benefits

Temporary Total Disability Benefits

Permanent Partial Disability Benefits

Permanent Total Disability Benefits

Death Benefits

What are the penalties for breaking New Jersey Workers’ Compensation laws?

Failure to adhere to the Workers’ Compensation laws set out by the DWC can result in significant fines and even imprisonment. In order to avoid any costly penalties, it’s important to consult the DWC or your insurer to ensure you are in compliance. Below are the major ways in which companies can be penalized:

Failure to Purchase Coverage

Unpaid or Delayed Benefits

Unfiled Reporting


How much does Workers’ Compensation Insurance cost in New Jersey?

According to the National Academy of Social Insurance Workers’ Compensation Report (October 2019), the average employer cost for Workers’ Compensation in New Jersey was $1.45 per $100 of covered wages. This figure is estimated across all insurers and all industries, so the cost to your particular business may vary.

How does the Workers’ Compensation claims process work in New Jersey?

The claims process in New Jersey begins with the employee. If an employee suffers a work-related injury or illness, he or she must report the condition to the employer in writing within 14 days of the injury or accident. Any delay in reporting may result in delays in the claims process, reduction of benefits, or denial of the claim.

The employer must then notify its insurance carrier so that a First Report of Injury form can be filed. This form informs the DWC about the accident or injury, and a copy of the report is sent to the injured employee for verification. Within 26 weeks of the injured employee fully recovering or returning to work, a second report, called the Subsequent Report of Injury, must be filed by the insurance carrier, informing the DWC of any benefits paid. 

New Jersey Workers’ Compensation Insurance Resources

For more information on New Jersey Workers’ Compensation laws and requirements, please visit the following resources:

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