State Senate President Steve Sweeney introduced S-2380, which would create a rebuttable presumption that certain essential employees contracted coronavirus during the scope of their employment for workers’ compensation purposes. While the business community is appreciative of the need to ensure that our front-line workers who have contracted COVID-19 and who have been negatively affected receive the benefits that they need to make them whole, NJBIA has voiced opposition to the legislation.
The bill is scheduled for a vote before the Senate Labor Committee on Tuesday at 3:00. The Assembly counterpart, A-3999 (Giblin, D-34), has not been scheduled for a vote at this time.
“We have significant concerns with using the workers’ compensation system as the primary method to provide these benefits,” said NJBIA Chief Government Affairs Officer Chrissy Buteas. “Our concerns are primarily that the cost of these claims can overwhelm the system, which was not designed to handle claims during a worldwide pandemic, and that the costs will be pushed back onto the business community, which is also struggling to survive.
“Worker compensation benefits are, by law, an injured worker’s exclusive remedy for workplace injuries,” Buteas added. “Therefore, this legislation will serve only to shift the cost of pandemic response to New Jersey’s workers’ compensation system and the essential businesses paying premiums for this insurance.”
Because existing federal programs are already addressing the immediate needs of workers, NJBIA believes now is not the time to enact a program that would displace otherwise available federal dollars. The association also has particular concerns centered on some specific provisions in the legislation, including but not limited to the definition of essential employee, theory of exposure, and the duration of the rebuttable presumption.
The Business Coalition, which is comprised of over 80 business associations across the state, sent memos on federal funding and details on the bill to the Senate Labor Committee members in advance of their committee hearing on Tuesday.
If you have any questions, please email Chrissy Buteas, Chief Government Affairs Officer, at Government_Affairs@njbia.org.
4 responses to “Business Community Opposes Workers’ Compensation Legislation”
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Stop costing businesses money…
First changing ppp rules now nj wants to kill our loss runs… The politicians should run a business not their mouths and other people lives…
Chrissy my main concern is this is a reaction to remedy an issue which is still unknown
A solution to Covid19 or any pandemic is premature.
We still don’t have an effective cure
Once we get ahead of this, with proper data and knowledge we can begin to discuss what parties should work together to pass responsible legislation and practices
New Jersey Government wants to make the cost for business unbearable. Comp costs are already extremely high and significant. The businesses of New Jersey can take no more increases. The task force wants to know how we can make more products in New Jersey, which is a great idea but ideas like shifting more costs to businesses make this idea totally untenable. Reduce the cost, that is the way.
Those who were considered “essential” include grocery store workers, fast food employees, pizza shop workers, gas station attendants, in addition to medical professionals of all kinds, nurses, doctors, aides, hospital employees in any job. I can think of 100 more jobs that would meet the criteria. The worker’s comp system should not respond to claims for COVID-19 infection. The spread is not due to the job but due to a pandemic that is a global issue. Our federal government should establish a fund, and pay for it thru a tax similar to the Federal Unemployment tax, that will reimburse essential workers for their out of pocket expenses and unpaid time off of work that was caused by the virus. Adding this liability to the Works Comp system threatens the ability to pay other work-related injuries that will continue to occur. Do the right thing but do it the right way.