Both houses of the Legislature are poised to give final approval to two pieces of legislation that will increase the cost of doing business in New Jersey by a significant amount. That’s why NJBIA is urging members to contact their state legislators and urge them to oppose these measures. (See instructions below.)
The two bills, to be voted on separately, would impose a new tax on health insurance and another would presume certain employees contracted COVID-19 at their place of employment, putting put the cost of treating COVID-19 on employers workers’ compensation policies and foregoing federal funds dedicated for the same purpose.
The vote is scheduled for tomorrow, so it is critical that members act immediately. NJBIA has an online system to help members send messages to their elected representatives.
- Go here to send a message on the health insurance tax
- Go here to send a message on the workers’ compensation bill.
“NJBIA opposes both measures because they will add costs for employers who have been struggling for their survival during the pandemic with a major economic shutdown and slow reopening of the economy,” says Chief Government Affairs Officer Chrissy Buteas.
The health insurance tax, S-2676 / A-4389, has been amended to impose a new 2.5% state excise tax on fully insured health insurance premiums for certain health benefits plans.. The bill is similar to a health insurance tax Gov. Phil Murphy proposed in his original FY 2021 budget proposal, which he put forth before the pandemic began in the U.S.
The workers’ compensation bill, A-3999, would create a presumption that certain essential employees contracted COVID-19 on the job and shifts the costs onto New Jersey’s workers compensation system. Not only would this increase the cost of doing business at the worst possible time, but federal money is already allocated to cover the costs of essential workers who contract COVID-19. In other words, passing this bill would leave federal dollars on the table and instead, force employers to shoulder the increase.
