FIVE BILL WORKERS COMPENSATION REFORM PACKAGE CEREMONIALLY SIGNED INTO LAW

Measures Make First Substantial Changes to State System Since 1979

(TRENTON) - A comprehensive legislative package sponsored by Assemblymen Joseph Egan and Thomas Giblin aimed at reforming the state's $1.8 billion workers' compensation insurance system was ceremonially signed into law today by Gov. Jon S. Corzine.

The new laws, officially signed into law last week, are the first such improvements to the state's system in nearly thirty years. They come after The Star-Ledger of Newark printed a series of articles that found problems in the workers compensation system.

"Each year thousands of New Jersey's workers injured on the job find that they can't make ends meet when their workers' comp benefits are held up by bureaucratic red tape or the courts," said Egan (D-Middlesex), chairman of the Assembly Labor Committee. "This is simply unacceptable. These are hard-working people and they deserve - if not absolutely depend on - access to these benefits."

Egan and Giblin spearheaded the measures along with Assemblyman Peter Barnes III (D- Middlesex).

"These new laws reform the workers' comp system from all angles," said Giblin. "From giving judges more power to police insurers and employers who fail to do their due diligence, to increasing penalties against employers who fail to purchase coverage, this package is strong and it will make a tremendous difference."

The first new law empowers workers' compensation judges with greater authority to seek contempt-of-court charges against insurers and attorneys who fail to comply with their orders. The judges will also be able to impose fines upon those who fail to comply.

The sponsors noted that for the approximately 100,000 individuals who enter the workers' compensation system each year, benefit payments total approximately $1.3 billion dollars while  insurance companies recoup approximately $1.8 billion.

A second measure will strengthen enforcement against employers for failure to provide workers' compensation coverage.

"By strengthening the penalties for breaking the law and ignoring the requirement to offer workers' compensation insurance, we will ensure hard working New Jerseyans who get injured on the job have coverage in their time of need," said Barnes.

A third new law requires proof of workers' comp coverage to be filed by employers along with certain required annual reports, while another will require an emergency hearing when a worker is in need of doctor-authorized medical treatment.

The final measure revises the membership of the Compensation Rating Inspection Bureau (CRIB) and clarifies its authority. It also was sponsored by Assemblywoman Elease Evans (D-Passaic).

"Since 1917, insurance industry representatives have wielded sole authority in writing workers' compensation insurance in the state," said Evans. "It is far past time that organized labor and the state's business community have a seat at the table."

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