NJ legislation would increase workers compensation rates

Date: January 01, 2015

S929/A1908 would impose
an increased cost on employers to fund a new cost-of-living adjustment (COLA)
on workers’ compensation benefit rates for certain disability cases that have
occurred since 1980. 

Reasons
why we oppose this bill:

  • The
    estimated $58 million annual cost of this potential change would be generated
    by increasing the $223 million annual surcharge that New Jersey employers are
    currently paying to the Second Injury Fund, which is already the second-highest
    such charge in the nation.
  • The
    $58 million cost of this adjustment is only based on the estimated cost at the
    time of implementation. There is no fiscal note projecting what the cost will be
    10, 20 or 30 years from now. Evidence indicates that the cost will rise
    dramatically in the future.


  • While both public and private-sector workers will receive the COLA – 17% will
    be government workers – the added expense will be borne solely by private
    employers.

  • This bill will impose a permanent statutory cost obligation on employers without
    a long-term fiscal estimate.

We encourage you to reach out to your legislators and
ask them to oppose these bills.

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