Bill > A3724

This bill expands personal liability for employers who fail to pay for workers' compensation coverage, meaning that in addition to the employer itself, any "principal owner" of the employer can also be held responsible for penalties. A "principal owner" is defined as anyone who directly or indirectly owns or controls the employer. Currently, if an employer fails to provide workers' compensation insurance, the Director of the Division of Workers' Compensation is required to impose a $1,000 penalty and an additional assessment of up to 15% of any awarded claims (capped at $5,000 per claim), with these funds going into the "uninsured employer's fund." This bill allows the "uninsured employer's fund" to pursue payment for benefits related to an employee's injury from these principal owners, in addition to the employer, through a process called subrogation, which essentially means the fund steps into the employee's shoes to recover costs. This ensures that the fund, which covers benefits for injured workers of uninsured employers, can recoup its expenses from those who have a significant stake in or control over the non-compliant employer.

Labor and Employment

https://www.njleg.state.nj.us/bill-search/2026/A3724