The New Jersey Senate yesterday easily approved three measures designed to reform the state’s workers’ compensation system.
All three bills now go to the Assembly.
- S1913 allows judges to issue contempt orders and levy fines for disobeying any order of a judge or any regulation regarding workers’ comp.
- S1914 strengthens enforcement against employers for failure to provide workers’ comp coverage.
- S1917 adds three new members to the New Jersey Compensation Insurance Rating and Inspection Bureau.
Out of 40 votes, 38 were in favor of S1913, 36 for S1914, and 38 for S1917.
“The bills will make minor improvements to the system but do not represent a major overhaul,” says Laura Kersey, American Insurance Association assistant vice president, Northeast Region.
None of the three measures have drawn objections from trade group representatives.
Another comp bill not voted on yesterday, S1918, was referred to the Senate Budget and Appropriations Committee and will be the subject of a hearing on Monday. The bill is a companion measure for Assembly bill A2970. It would require insurance fraud prosecutors to join forces with the Department of Labor and Workforce Development to investigate cases of failure to provide workers’ comp coverage.
The four bills are expected to pass before June 26 when lawmakers adjourn for their summer break. Assembly voting sessions are scheduled for June 23 and June 25.
In all, the legislature has been at work on a six-bill comp reform package. Two remaining measures are seen as unlikely to pass the Assembly until the fall, but the Senate is likely to pass them before adjournment, said State Sen. Paul Sarlo, D-Bergen, who sponsored the package.
The Senate Labor Committee will hold a hearing on the stalled bills Thursday, and they are scheduled to be on the Senate floor June 24.
S1916 drops the deadline for mandated hearings on emergency care for injured workers from 30 days to two days, providing insurers with minimal research time. Insurers believe the timeframe is “unreasonable and unworkable,” said Ms. Kersey.
S1915 requires proof of workers’ comp coverage from certain licensed entities before they can renew their licenses.
Patrick Breslin, assistant secretary at New Jersey Manufacturers, said he believe the objections to the bills in question can be resolved.