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Common Questions about New Jersey Workers’ Compensation

Common Questions about New Jersey Workers CompensationCommon Questions about New Jersey Workers’ Compensation

One of the most common questions that your client may have about workers compensation is what they can do when an employee is out on New Jersey Workers’ Compensation leave for an extended amount of time. Can they legally terminate the employee? What policies must they follow to do so? Honestly, the answer to these questions will depend on the size of your clients’ business, how crucial the injured employees’ role is to the success of your business, and what their business necessities are. Overall, your client needs to establish a policy for such scenarios to protect themselves.

The good news is, even though New Jersey Workers’ Compensation laws may seem to prevent the ability to discipline or terminate an injured employee, your clients can still stay within the boundaries of New Jersey Workers’ Compensation laws while effectively implementing employee discipline and even terminating employees for a reasonable cause.

Another situation that many employers question is whether they need to create or find a position for an employee who was gone on New Jersey Workers’ Compensation leave when they come back, even if their position had to be replaced due to lack of staffing. This type of situation requires a detailed “business necessities” analysis. It must be shown that there was a true business necessity to replace them before they were able to recover enough to return to work. It’s important to note that if the employee was replaced while on temporary disability, your client may not be able to justify the business necessity since it can’t be show that the employee would never be able to return.

One last common question your clients may have about New Jersey Workers’ Compensation is what they should do if they expect a fraudulent claim. Unfortunately, there’s no simple answer to this. If a client has this occurring frequently, such as with seasonal employees, they may want to consider pre-employment physical evaluations. While it may not be practical, and your client will have to check with local laws, it is an option.

Workers’ Compensation laws can be confusing for many employers, but it’s important to ensure that they are complying with those laws. To learn more about how New Jersey Workers’ Compensation Insurance can work for your client’s industry, please contact ASIA at (866) 679-7457. Insurance agents and brokers with access to competitive markets have the opportunity to leverage an improving economy set to spur the workers compensation industry with an increase in jobs and payroll exposure, all while capitalizing on the ability to secure coverage for their clients.

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