Failure to pay comp insurance liability would extend to employer owner under bill
Reprints
New Jersey lawmakers filed legislation Monday that would extend liability to company owners in cases where employers fail to pay for workers compensation insurance.
Assembly Bill 4283 “expands the reach of the ‘uninsured employer’s fund’ through subrogation, to pursue payment for benefits of the claims related to an employee’s injury from an uninsured employer to include any principal owner of the employer, in addition to the employer,” the bill states.
Under New Jersey law, employers who fail to provide workers comp insurance face a $1,000 penalty and an additional assessment of 15% of the award in workers comp claims. The penalties are added to the uninsured employer’s fund.
Employers and principal owners would be subject to joint and several liability under the bill, making any penalties for failing to pay for comp insurance collectible against both the employer and owner.
The bill was referred to the Assembly Labor Committee.
