Workers Compensation in New Jersey
State-specific overview · Employment Law
New Jersey requires all employers with one or more employees to carry workers' compensation insurance.
How New Jersey treats Workers Compensation
New Jersey's Division of Workers' Compensation administers the program with mandatory coverage for virtually all employers. Employers must purchase insurance from private carriers or the state fund (NJSIF), or qualify for self-insurance. Benefits include medical treatment, temporary and permanent disability payments at two-thirds of average weekly wage, and vocational rehabilitation. New Jersey also provides supplemental job displacement vouchers to workers with permanent partial disabilities to help with retraining.
The general definition of Workers Compensation
Insurance that provides medical benefits and wage replacement to employees injured during work.
Workers compensation is a form of insurance that employers are required to carry to protect employees who are injured or become ill as a result of their job. When an employee is hurt at work, workers compensation covers medical expenses, rehabilitation costs, and a portion of lost wages while the employee recovers. In exchange, the employee generally gives up the right to sue the employer for the injury. The system is designed to provide quick, predictable benefits without the need for a lawsuit. Benefits vary by state and depend on the severity of the injury.
Read the full Workers Compensation entry →This page is a plain-English reference and is not legal advice. State laws change frequently. For specific situations consult a licensed attorney in New Jersey.