Insurance Journal

September 12, 2012

New Jersey’s Division of Workers’ Compensation has recently proposed an amendment that would increase the 2013 maximum weekly benefit rates from $810 to $826. The rates would be applicable for temporary disability, permanent total disability, permanent partial disability, and dependency under the Workers’ Compensation Law.

The proposed 2013 maximum benefit rate represents a 2.0 percent increase in the current maximum benefit rate.

Officials said the proposed amendment will ensure that payments to workers’ comp recipients entitled to maximum benefits will increase in line with the upward trend of wages in the state’s economy — thus preserving the real purchasing power of their benefits.

A public hearing on the proposed amendment will be held on Oct. 2, at the Trenton office of New Jersey Department of Labor and Workforce Development. Interested parties can contact the Office of Legal and Regulatory Services to submit written comments or to be included on the list of speakers for the hearing.

The increase in maximum weekly benefits in New Jersey is yet another sign that there will be a rise in workers compensation costs. The higher the benefits are, there is a higher risk for cases of fraud, where employees in the bigger pay brackets will be more likely to stay out of work because their workers comp benefits will be comparable to their salaries. If you are an employer who is trying to keep a lid on your workers compensation insurance, there is no quicker and easier way than workers comp premium recovery. Get refunds on your current and prior years' policies, as well as a better underwriting profile to enter the new marketplace with.