Workers' Compensation: Sherrill's Win Locks In Worker Protections

Under the Democratic leadership of Governor Phil Murphy, New Jersey began a distinct, liberalizing shift in the application of its Workers' Compensation statute. Rather than a total systemic overhaul, the Murphy administration enacted targeted legislation that expanded coverage and lowered the burden of proof for key segments of the workforce.

With Democrat Mikie Sherrill winning the governorship (56.3%) and the party retaining control of both the State Assembly and Senate, this pro-worker, liberalizing agenda is poised to continue and potentially deepen. Sherrill, with a strong pro-labor platform, is expected to champion policies that further expand benefits and tighten enforcement of existing laws.

The specific laws enacted during the Murphy era—from creating a presumption for COVID-19 to expanding mental health services—provide a forward-looking analysis of the new political landscape. The key legislation anticipated under Governor Sherrill, focusing on issues such as worker classification (the ABC test) and the push for medical marijuana coverage, will significantly impact both employees and employers in the Garden State.

Workers' Compensation Legislation Enacted Under Governor Murphy

The legislation signed by Governor Murphy has demonstrated a trend toward expanding coverage and benefits, particularly for essential and front-line workers. Key enacted legislation includes:

COVID-19 Workers' Compensation Presumption (S2380/A4134 - 2020): This law created a rebuttable presumption that certain essential employees (e.g., healthcare, food store, and other front-line workers) who contracted COVID-19 during a declared public health emergency did so in the course of their employment, significantly easing the burden of proof for those workers to receive workers' comp benefits.
First Responder Mental Health Coverage (S-4590/A-5792 - 2025): This legislation expanded workers' compensation coverage to include confidential counseling services for first responders (police, firefighters, EMTs, 9-1-1 dispatchers) who experience a "critical incident" in the line of duty.
Expansion for Public Safety Personnel (A-5909/S-4267 - 2024): This bill revised and expanded workers' compensation coverage for certain injuries, including heart attacks or strokes, to volunteer and professional public safety and law enforcement personnel, especially those responding to an emergency. It effectively created a high rebuttable presumption in favor of compensability for these specific health events.
Increased Attorney Contingency Fees (A-3986/S-2822 - 2024): This law increased the maximum contingency fee for attorneys in workers' compensation cases from 20% to 25% of the award, which can incentivize legal representation for claimants.
Domestic Workers' Bill of Rights (2024): This legislation granted a broad range of protections to domestic workers, including coverage under workers' compensation (along with unemployment and temporary disability benefits).

These acts generally indicate a trend toward liberalization, as they lower barriers to coverage and expand the definition of compensable injuries for specific groups.

Anticipated Changes Under the Sherill Administration

Medical Marijuana Coverage (Pending Legislation): There has been ongoing legislative interest in requiring workers' compensation to cover the medical use of cannabis under certain circumstances (e.g., A4371/S1943). This is a policy with significant momentum in progressive states.
Statute of Limitations: Bills have been introduced to reduce the statute of limitations for medical fee disputes (e.g., A1934/S786).
Worker Classification (ABC Test): There is a continued push (which has been a Murphy administration focus) to codify and clarify the "ABC test" for determining independent contractor status. Broadening the interpretation of the ABC test would classify more workers as employees, thereby increasing the number of individuals covered by the workers' compensation system.

Key Takeaways

Political Mandate: Governor Mikie Sherrill's victory and Democratic control of the legislature ensure a strong political mandate to continue the pro-worker, liberalizing trend of the Murphy administration.
Targeted Expansion (Murphy Era): Past changes focused on specific groups (front-line workers, first responders, domestic workers) by expanding coverage and easing the burden of proof.
Enforcement Focus (Sherrill Era): Expect a strong emphasis on rigorous enforcement of labor laws, including wage theft and prevailing wage requirements, led by Sherrill's appointed Commissioner of Labor and Attorney General.
Worker Classification (The ABC Test): The next administration is likely to aggressively address worker misclassification, codifying or strengthening the ABC test to ensure more gig workers and independent contractors are covered by Workers' Compensation.
Anticipated New Laws: Momentum is expected to build for high-profile liberalizing legislation, such as mandating Workers' Comp coverage for medical marijuana and further expanding benefits for public sector and essential employees.