Workers compensation law, rules and policy information for New Jersey



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State: New Jersey

Updated: Rating Payroll 08-10-2023

Authority/State Rating Bureau: The New Jersey Compensation Rating and Inspection Bureau (NJCRIB), an agency in the New Jersey Department of Banking and Insurance, is responsible for establishing and maintaining regulations and premium rates for workers’ compensation and employers’ liability insurance. Contact them at:

New Jersey Compensation Rating and Inspection Bureau
60 Park Place
Newark, NJ 07102
(973) 622-6014
The New Jersey Compensation Rating and Inspection Bureau

Compulsory: Yes

Private Insurance: Allowed

Self-Insurance: Allowed

State Fund: No

Assigned Risk: New Jersey Compensation Rating and Inspection Bureau

Assigned Risk Contact Information: New Jersey Compensation Rating and Inspection Bureau: http://www.njcrib.com

New Jersey Compensation Rating and Inspection Bureau
60 Park Place
Newark, NJ 07102
(973) 622-6014

Numerical Exceptions: None

Individual Waivers Allowed: No

Small Deductible Program Details:
Allowed: NA
Deductible Range: NA
Type: NA
Effect on Experience Rating: NA
Available In: NA
For More Information About How Deductible Programs Work

Sole Proprietor: Excluded from coverage/may elect to be included – All sole proprietorships operating in New Jersey must maintain workers’ compensation insurance or be approved for self-insurance so long as any one or more individuals, excluding the principal owner, performs services for the business for prior, current or anticipated financial consideration. When included the rating payroll used for a sole proprietor is banded between a minimum of $29,640 and a maximum of $118,040 as of 1-1-11, $30,160 / $120,640 as of 1-1-2013, $30,680 / $123,240 as of 1-1-2014, $31,720 / $125,840 as of 1-1-2015. Minimum of $640 per week and a maximum of $2,570 per week as of 1-1-2018. Minimum of $660 per week and a maximum of $2,640 per week as of 1-1-2021.

Partners: Excluded from coverage/may elect to be included – All partnerships operating in New Jersey must maintain workers’ compensation insurance or be approved for self-insurance so long as any one or more individuals, excluding partners, perform services for the partnership, for prior, current or anticipated financial consideration. When included the rating payroll used for a partner is banded between a minimum of $29,640 and a maximum of $118,040 as of 1-1-11, $30,160 / $120,640 as of 1-1-2013, $30,680 / $123,240 as of 1-1-2014, $31,720 / $125,840 as of 1-1-2015. Minimum of $640 per week and a maximum of $2,570 per week as of 1-1-2018. Minimum of $660 per week and a maximum of $2,640 per week as of 1-1-2021.

Corporate Officers: Included in coverage – All corporations operating in New Jersey must maintain workers’ compensation insurance or be approved for self-insurance so long as any one or more individuals, including corporate officers, perform services for the corporation for prior, current or anticipated financial consideration. Financial consideration means any remuneration for services and includes cash or other remuneration in lieu of cash such as products, services, shares of or options to buy corporate stock, meals or lodging, etc. Rating payroll used for a corporate officer is banded between a minimum of $29,640 and a maximum of $118,040 as of 1-1-11, $30,160 / $120,640 as of 1-1-2013, $30,680 / $123,240 as of 1-1-2014, $31,720 / $125,840 as of 1-1-2015. Minimum of $640 per week and a maximum of $2,570 per week as of 1-1-2018. Minimum of $660 per week and a maximum of $2,640 per week as of 1-1-2021.

LLC Members: Excluded/may be included – All limited liability companies (LLC’s) operating in New Jersey must maintain workers’ compensation insurance or be approved for self-insurance so long as any one or more individuals, excluding members of the LLC, perform services for the LLC, for prior, current or anticipated financial consideration*. When included the rating payroll used for a partner is banded between a minimum of $29,640 and a maximum of $118,040 as of 1-1-11, $30,160 / $120,640 as of 1-1-2013, $30,680 / $123,240 as of 1-1-2014, $31,720 / $125,840 as of 1-1-2015. Minimum of $640 per week and a maximum of $2,570 per week as of 1-1-2018. Minimum of $660 per week and a maximum of $2,640 per week as of 1-1-2021.

Election or Rejection of Coverage Form: New Jersey Workers Compensation Insurance Plan – Notice of Election for Proprietors, Partners and LLC Members Be sure to check with the New Jersey Department of Labor for confirmation and details on exclusion and inclusion.

Notes About Forms: Be sure to contact your insurance company for information about additional forms they may use for exclusion or inclusion of coverage.


Contractors: NA

Special Notes: The New Jersey Workers’ Compensation Act is liberally interpreted with respect to the definition of “employee” and is broader than the Internal Revenue Code and Unemployment Compensation statute. A variety of working relationships have been determined to be that of an employer-employee, including some that would not appear to be a typical employment situation. Further, a contract or other agreement as to whether an individual is an employee is not binding in determining whether an employee–employer situation is present.

New Jersey courts, in deciding this issue, have developed two tests: the “control test” and the “relative nature of the work test.”

Under the “control test,” the relationship between a business and the individual is reviewed. There is employment if the business retains the right to supervise the individual and control what is done as well as how it shall be done.

Under the “relative nature of the work test,” there is employment if an individual relies on income from the business and the work performed by the individual is an integral part of the activities of the business. If any or both of these tests are met, an employee–employer relationship is established.

You can obtain workers’ compensation insurance coverage from any of the more than 400 private licensed insurance companies authorized to sell workers’ compensation policies in New Jersey. You can purchase a policy directly from an insurance carrier, an insurance agent or an insurance broker. For further assistance with obtaining coverage, please contact the NJ Compensation Rating & Inspection Bureau, contact information is listed above.

Experience Rating Eligibility: New Jersey employers will receive an experience modification rate or EMR once they meet this trigger as indicated in the New Jersey CIRB Manual:

  • An employer will qualify if payrolls developed during the three year experience period produce a premiu of $6,000 at manual rates.
  • Be sure to check with the NJCIRB to verify when qualification applies.

New Jersey Subrogation:  New Jersey 34:15-40 is the statute that deals with workers compensation subrogation for this state. 34:15-40 is titled Liability of Third Party. To access this statute use the link we’ve provided below. This link will take you to New Jersey Statutes which are in a pdf format. Scroll down the index on the left until you reach 34:15-40, click on that and the page will come up for your viewing.

New Jersey Subrogation Statute

New Jersey Workers Working In Other States; Other States Workers Working In New Jersey, Extraterritorial, Reciprocity and Non-Compliance:  New Jersey is silent on this topic. Extraterritorial and reciprocity issues are not addressed by New Jersey statute. Compliance of workers compensation laws varies from state to state and it is important for an employer with workers performing duties in other states to be aware of the specific state rules that govern their coverage. We’ve provided the below general information about extraterritorial and reciprocity as a basic guide. Please contact your New Jersey state authority with your specific questions concerning this topic!

  • Extraterritorial:
    • Provisions: No
    • Duration: Does not apply
  • Reciprocity:
    • Allowed: No
  • Specific Statute or Reference: None
  • For More Information Contact: New Jersey Department of Workers Compensation shown below.




Regulated By:New Jersey Department of Labor and Workforce Development

New Jersey Department of Labor and Workforce Development
Division of Workers Compensation
P.O. Box 381
Trenton, NJ 08625-0381
Phone 609-292-2515 Fax 609-984-2515
New Jersey Department of Labor and Workforce Development

New Jersey Department of Insurance
20 W State Street
Trenton, NJ 08625
609-292-5360
New Jersey Department of Insurance

Workers compensation statute can be found here:

verification of workers compensation coverage New Jersey Workers Compensation Statute

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Information on this page is provided only as a reference. While we strive to mantain accurate information on this site please realize workers compensation laws are complicated and subject to change at any time. No warranty as to the accuracy or completeness of this information is provided or to be implied. You must verify this data before use with the individual governing authority for this state. If you need help with a workers compensation problem or have a specific situation or question please contact our office. Otherwise please consult your states governing authority or an attorney in your state of residency for assistance.

Contact Us:
WORKERS COMPENSATION CONSULTANT
Voice: (573) 489-8323
Fax: (573) 447-4998
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