Alert from NJBIA: Tell the Legislature Not to Raise Workers’ Compensation Costs

Alert from NJBIA: Tell the Legislature Not to Raise Workers’ Compensation Costs

January 8, 2014

Capture

 

 

As members of the New Jersey Business & Industry Association, we at Interstate Motor Carriers/Capacity Agency would like to share a notice from the NJBIA with all employers in NJ.

On Thursday the Legislature will vote on a bill that would increase workers’ compensation costs for most employers in New Jersey. NJBIA urges members to contact their state legislator immediately using their easy-to-use on-line system to ask them to vote “NO”.

Senate Bill 613 (Sweeney, Madden)/Assembly Bill 4514 (Burzichelli/Riley), imposes an annual cost-of-living adjustment (COLA) on workers’ compensation benefit rates for certain disability cases that occurred after 1980. The extra money would be generated by increasing the surcharge employers pay on their premiums to maintain New Jersey’s Second Injury Fund for injured workers. The estimated cost may be in the tens of millions.

Here is some additional information about the bill:

bullet Workers’ compensation costs are already climbing in New Jersey. Workers’ compensation costs have risen steadily in recent years due largely to medical inflation. Increasing the Second Injury Fund surcharge, which is already among the highest in the nation, would only push overall workers’ compensation costs higher.

bullet Bill may not result in increased benefits for injured workers. If this measure is enacted, Social Security may simply reduce its payment to the worker by the amount of the increased workers’ compensation payment. This would increase employers’ cost without providing any additional benefits to workers.

bullet Cost borne solely by private employers. While both public and private-sector workers’ compensation beneficiaries will benefit from the higher rates, the added expense will be shouldered solely by private-sector employers through increases in the surcharge paid to the Second Injury Fund.

NJBIA urges members to contact their state legislator immediately using their easy to use on-line system to ask them to vote “NO”.

«
»