Sponsored by:
Senator BOB ANDRZEJCZAK
District 1 (Atlantic, Cape May and Cumberland)
SYNOPSIS
Requires reduced worker's compensation premiums for farm employers and small employers.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning premiums for workers' compensation insurance and supplementing P.L.2008, c.97 (C.34:15-90.1 et al).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. As used in this act:
"Bureau" means the Compensation Rating and Inspection Bureau as continued pursuant to section 1 of P.L.2008, c.97 (C.34:15-90.1).
"Commissioner" means Commissioner of Banking and Insurance.
"Farm employer" means any employer who employs one or more farm workers on a farm.
"Farm" means land which is used for commercial raising, growing and producing of any crop, livestock, or fur products; not less than five acres in area; and not used in the business of buying farm products for resale.
"Small employer" means any employer who employed less than six employees for every working day during each of a majority of the calendar workweeks in the current calendar year and less than six employees for every working day during not less than 48 calendar workweeks in the preceding calendar year, except that, if the employer was newly established during the preceding calendar year, the employer shall be regarded as a "small employer" if the employer employed less than six employees for every working day during all of the weeks of that year, and during a majority of the calendar workweeks in the current calendar year, and, if the employer is newly established during the current calendar year, the employer shall be regarded as a "small employer" if the employer employed less than six employees for every working day during a majority of the calendar workweeks in the current calendar year.
b. The Compensation Rating and Inspection Bureau shall, upon the recommendation of the Commissioner of Banking and Insurance, reduce the workers' compensation premiums paid by farm employers and small employers by five percent. Three years after initial approval by the commissioner, the bureau, upon the approval of the commissioner, may increase or reduce the reduction by no more than 2.5 percent, according to any factors that the bureau deems relevant, including, but not limited to, the experience of the employer. Any reduction granted pursuant to this section shall remain in effect until the commissioner revokes its approval.
c. (1) A farm employer operating a farm or a small employer may apply to the commissioner for a workers' compensation premium reduction in accordance with subsection b. of this act. Upon receipt of an application, the commissioner shall determine the employer's eligibility for the program, and if the employer is eligible, the commissioner shall notify the bureau of the approved reduction.
(2) Following initial approval of a premium reduction, an employer shall continue to submit statements on an annual basis certifying as to the employer's continued eligibility for the premium reduction. An employer shall promptly notify of the commissioner of any change to the employer's status that would disqualify the employer from receiving the premium reduction, including, but not limited to, an increase in the number of employees for an employer designated as a small employer.
(3) The commissioner may assess a civil penalty of $100 per day against an employer for each day that the employer fails to report a disqualifying change to the commissioner subsequent to initial approval. That penalty shall be collected by the commissioner in a summary proceeding in accordance with the "Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.).
2. This act shall take effect on January 1 next following the date of enactment, except the Commissioner of Banking and Insurance may take any anticipatory administrative action in advance as shall be necessary for the implementation of this act.
STATEMENT
This bill requires the Compensation Rating and Inspection Bureau, the agency responsible for setting premiums for workers' compensation insurance, to reduce premiums for farm employers and small employer by five percent.
Under the bill, "farm employer" means any employer who employs one or more farm workers on a commercial farm, and "small employer" means an employer with less than six employees.
An employer seeking the premium reduction is required to file an application with the Commissioner of Banking and Insurance, who will determine an employer's eligibility for the premium reduction. An employer approved for a premium reduction is subject to an ongoing responsibility to update the commissioner of any change to the employer's status that would disqualify the employer from receiving the premium reduction. If an employer fails to report a disqualifying change to the commissioner subsequent to initial approval, the commissioner may assess a civil penalty of $100 per day against the employer for each day of its failure to notify the commissioner.