On Sept 14, 2020, New Jersey Governor Phil Murphy signed into law Senate Bill 2380 (S2380), expanding access to workers’ compensation benefits for workers infected with COVID-19. This bill retroactively covers Covid-19 positive “essential” workers up to March 9, 2020.
This new law diminishes the usual requirement of a worker to prove that his injury or illness was caused on the job. This new law presumes that essential workers’ illnesses arising during the pandemic are related to their work.
Employers can only rebuttal these presumptions if the employer can demonstrate that the essential worker was not exposed to COVID-19 at their place of work.
The law redefines “essential employee” as an employee in the public or private sector who, during a state of emergency: (1) is a public safety worker or first responder; (2) is involved in providing medical and other healthcare services; (3) performs functions which involve physical proximity to members of the public and are essential to the public’s health and safety (e.g. grocery clerk); and (4) any other employee deemed an essential employee by a public authority. It should be noted, however, this presumption will only apply if the employee contracts COVID-19 during the State of Emergency.
Note: Gov. Murphy declared a State of Emergency in New Jersey on March 9, 2020, and has extended that order indefinitely.
New York State currently does not have a similar law but is considering rebuttal presumption legislation also.
Claims paid in relation to this bill would be excluded from consideration when calculating an employer’s Experience Modification Factor, negating any direct impact on the employer’s workers’ compensation premium.
When you see a state’s legislate insurance coverage like this it has a downstream adverse effect in that local market. At the very least, you may see insurance rates increase due to the additional exposure they are asked to carry. The work comp rates currently in effect did not contemplate coverage for a pandemic. Further, they cannot recoup their losses through the EMR as they do with all other claims which means they need to take rate increases. Exactly the wrong time to saddle NJ business owners with higher costs.
Fortunately, as a business owner who is paying attention, there are steps you can take to mitigate this. For More Information on how this new legislation may affect your New Jersey business, contact a Risk Advisor at 924-357-8444.
Photo by Brooke Cagle on Unsplash