New Jersey To Consider Positive Reform For Their Workers' Compensation System!

Saturday, May 24, 2008
BY DUNSTAN McNICHOL
Star-Ledger Staff

At Least They're Trying To Fix Their Problems! It's A Start!

New Jersey

Workers' Compensation judges would get new enforcement powers, employers who don't buy compensation coverage would face criminal sanctions and the insurance industry would lose its monopoly on the panel that helps determine how much these policies cost, under reform measures introduced in the state Senate this week.

Sen. Paul Sarlo (D-Bergen), chairman of the Senate Labor Committee, introduced the six-bill package of reforms in response to a series of reports in The Star-Ledger that highlighted enforcement problems, bureaucratic delays and political entanglements that have left thousands of injured workers waiting months or years for the relief promised by the workers compen sation system.

The bills, numbered S-1913 through S-1918, were introduced late Thursday, and their text was made available yesterday.

One of the bills (S-1917) would add three new members representing labor, business and the general public to the governing board of the Compensation Rating and Inspection Bureau. The bureau, which helps set rates for the Workers' Compensation insurance all New Jersey employers are required to carry, currently includes only insurance company representatives.

Another bill (S-1916) would require injured workers to get hearings within five days on claims that they have been denied medical treatment their doctors certify they need.

The bill to increase Workers Compensation judges' power (S- 1913) would give them the authority to file contempt charges in Superior Court against companies or attorneys who fail to comply with orders or deadlines.

And a fourth measure (S-1915) would require proof of compensation insurance coverage for any employer seeking renewal or issuance of a taxi or liquor license, a construction permit or registration to operate a temporary help firm. State audits have found those businesses routinely operate without the required compensation coverage.

Set up almost a century ago, Workers' Compensation is designed to give injured workers prompt medical care and wage replacement in return for the promise they will not sue their employers for on-the-job injuries.

More than 100,000 workers seek comp benefits each year, and employers pay about $1.8 billion in premiums for the required compensation insurance annually.



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