What If My Boss Doesn’t Have Workers’ Comp Insurance?

If you’ve sustained an injury while on the job, you will likely look to your employer’s workers’ compensation policy for relief. However, what course of action is available if your employer has neglected to secure the legally required insurance? Please continue reading to discover what happens if your employer doesn’t have coverage and how our experienced Hudson County Workers’ Compensation Lawyers can help you navigate your options.  

Are Employers Required to Carry Workers’ Compensation Insurance?

In New Jersey, employers are legally required to carry workers’ compensation insurance for their employees, covering job-related injuries or illnesses. Employees are prohibited from contributing to this cost. Unlike certain deductions, such as Social Security or health insurance contributions, employers are forbidden from subtracting workers’ compensation fees from an employee’s wages. This type of insurance is designed to safeguard both parties by ensuring financial aid for staff hurt while working and restricting the employer’s liability for occupational injuries. 

Most companies are required to secure this insurance or obtain official authorization for self-insurance. Non-compliance can lead to harsh penalties. The required coverage must include both medical care and wage benefits. 

Are All Workers Covered? 

While the majority of employees are covered by workers’ compensation, there are a few exclusions. Generally, staff with full-time or part-time positions, those hired for specific seasons, and various laborers and administrative personnel are normally covered. However, potential exemptions apply to self-employed individuals in certain circumstances and some temporary non-regular staff. It’s crucial to bear in mind that disagreements about proper classification can sometimes occur when drawing these lines. 

What Happens If My Employer Doesn’t Have Coverage? 

If your employer fails to carry workers’ compensation insurance, they will face serious consequences. For starters, they are looking at hefty fines and possible criminal charges. Employers can be held personally responsible for your medical bills and lost income. 

Workers’ compensation operates on a principle of no-fault liability, which affords employers a measure of protection from legal action. Consequently, employees are entitled to receive compensation without being obligated to demonstrate employer negligence. However, if an employer fails to comply with workers’ compensation mandates, these legal safeguards are forfeited, exposing the employer to direct civil lawsuits for negligence, which may include claims for non-economic damages. 

The Garden State also provides the Uninsured Employers Fund (UEF) as a safety net, covering medical expenses and temporary disability benefits to those injured while working for an employer who fails to provide workers’ compensation coverage. 

At Lerner, Piermont, Riverol & Lawlor, P.A., we are prepared to help you understand your rights and fight for the benefits you need. Connect with us today to schedule a consultation.