EGAN & QUIJANO BILL TO HELP STATE ENFORCE WORKER COMPENSATION LAWS SIGNED BY GOVERNOR

EGAN & QUIJANO BILL TO HELP STATE ENFORCE WORKER COMPENSATION LAWS SIGNED BY GOVERNOR

(TRENTON) – Legislation Assemblyman Joseph V. Egan and Assemblywoman Annette Quijano sponsored to give the state an additional tool to effectively enforce New Jersey’s worker compensation laws was signed today by Gov. Jon S. Corzine.

The law (A-3569) allows the state to issue a stop-work order against an employer found to have knowingly failed to provide workers’ compensation coverage, misrepresented employees as independent contractors or provided false, incomplete or misleading information concerning the number of employees.

“Most employers responsibly and properly classify their workers and pay workers’ compensation premiums, but some skirt the law,” said Egan (D-Middlesex), the Assembly Labor Committee chairman. “That puts workers at risk and hurts responsible employers who play by the rules. This is, quite simply, an additional tool to help enforce our workers’ compensation laws.”

“Responsible employers throughout the state are hurt by those who trample upon our workers’ compensation laws and put people at risk,” said Quijano (D-Union). “Ultimately, those who play by the rules subsidize companies that don’t, so this new law is good for business. It protects hard-working New Jerseyans and responsible employers alike.”

Under the bill, the state shall issue, not later than 72 hours after the determination is made, a stop-work order requiring the cessation of all business operations at every site at which the violation occurred. The order shall remain in effect until the director releases the stop-work order upon finding that the employer has ended noncompliance and paid any penalty assessed.

A stop-work order issued against an employer shall apply equally to any successor firm, corporation or partnership of the employer.

An employer who is subject to a stop-work order has the right to apply, not more than 10 days after the order is issued, for a hearing to contest whether the employer committed the violation on which the order was based.

The hearing shall be afforded and a decision rendered within 48 hours. Failure or refusal to comply with a stop work order issued pursuant to the law will result in a penalty of not less than $1,000 and not more than $5,000 for each day of non compliance.

Also, an employer who misrepresents one or more employees as independent contractors, or provides false, incomplete or misleading information concerning the number of employees, is - like an employer who entirely fails to provide workers compensation coverage - guilty of a disorderly persons offense and, if the violation is knowing, guilty of a crime of the fourth degree.

A stop work order will apply only to the employer who knowingly committed the violation and not to any other employer at the worksite.

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