2009 NJ Workers’ Compensation Benefit Will Amount to $19.32 Per Hour

The 2009 workers’ compensation benefit rate for 2009 has been announced and it will increase to a maximum of $19.32 per hour or the equivalent of $40,196. per year. NJ bases its rate on only 70% of the SAWW.

• NJ SAWW $1030

• NJ SAWW Hourly $25.75/hr

• 2009 Annual Benefit 75% SAWW of the 2008 SAWW $773.00

• 2009 Maximum Annual SAWW cap = $19.32/hour

• $19.32 x 40 x 52 = $40,196.00 per year

Where NJ Stands in Comparison to Other States
13 States have SAWW Caps that are higher than 100% of the SAWW. Iowa has 200%. 20 States, including close or nearly adjacent States/Federal District (Pennsylvania, Rhode Island, Connecticut, Massachusetts and District of Columbia.), have 100%.

Of the States with fixed dollar caps on benefits, 33 States have caps that are 100% or greater than New Jersey and only 6 states have dollar caps lower than NJ.

What an Increase of the “CAP” Would Cost
Some proponents have sough a legislative change in NJ to increase the benefit payment, It has been estimated that in increase in the cap from merely from 75% to 80% would cost no more that a 1% percent increase in total cost and therefore an increase to 100% would be no more than 5% or about $100 million in total premium dollars.