Whether you’re an employee or employer in Hackensack, New Jersey, worker’s compensation is beneficial for covering work-related illness and injuries. New Jersey passed the law in 1911 requiring all employers to have it, so you will want to understand how it works.
Overview of workers’ compensation
If an employee is injured on the job, workers’ compensation temporarily provides a portion of income until they can return to work. This coverage also pays for medical treatment to help the employee recover, allowing the employer or the insurance provider to choose doctors. Workers’ comp also offers permanent partial disability to employees who can return to work but earn less because they can’t do the same job.
If the employee cannot return to work at all, they may be eligible for total permeant disability benefits. Many workers’ comp plans also include a death benefit that pays for funeral expenses for employee deaths caused by accidents. If you operate a service across several states, your business must meet the exemption requirements of each state.
What worker’s comp won’t cover
A workers’ compensation injury must meet eligibility under state law, which requires the injury to occur within the scope of employment. For example, if an employee has a vehicle accident in the company truck or falls running errands for you, you may be liable. However, if they run a personal errand while on the job and get injured, the employer is usually not liable.
Workers who get injured engaging in horseplay are typically not covered, but an innocent bystander could get covered. Workers’ compensation will not cover injuries from commuting, personal meals, impairment on drugs or alcohol, illnesses from personal meals, or illegal activity.
Employees and employers should know what workers’ comp law covers to avoid wasting time and resources. Settling a claim out of court is commonly preferable to dealing with litigation.