NJ Offers Tax Credits to Employers to Offset Minimum Wage Increases for Workers with Impairments

A $10 million tax credit program put into effect for the 2019 tax year will help offset payroll cost increases for employers of workers with impairments.

The program was created through the minimum wage law signed by Governor Murphy in 2019 to ease the transition for businesses to a $15 minimum wage, and is administered by the New Jersey Department of Labor and Workforce Development. It is designed to help bridge the economic gap for employers as the minimum wage rises by $1 per hour each year until it reaches $15 per hour in 2024 for most employees.

Employers of workers with impairments will be able to claim credit for the cost of the wage increases and corresponding increases in payroll taxes that the employer pays on those workers’ wages.

“Every hardworking New Jerseyan working full-time deserves a fair, livable wage,” said Governor Phil Murphy. “With this new program, we are committed to providing individuals with disabilities the opportunity to fully participate in our society and economy while ensuring the viability of businesses in New Jersey.”

“While it is critical for workers to be able to earn a living wage, we must also continue to support our business community, especially those who provide employment for hard-to-place workers,” said Labor Commissioner Robert Asaro-Angelo.

The program is part of Gov. Murphy’s Jobs NJ, a multi-pronged initiative to grow New Jersey’s talent pool to meet the needs of businesses into the future. It is part of the governor’s over-arching goal of providing equitable opportunities in the workforce and building a stronger, fairer economy for all. To learn more about Jobs NJ, click here.

Qualifying employees are those who earn at least minimum wage and whose work capacity is “significantly impaired by age or physical or mental deficiency or injury” and who are found by the state to be eligible for personal assistance or prescribed drugs to be able to perform the essential tasks of the job.

Eligible employers must complete an Application for Certification, which can be found here.

To read more about "minimum wage" and workers' compensation, click here.

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Jon L. Gelman of Wayne NJ is the author of NJ Workers’ Compensation Law (West-Thomson-Reuters) and co-author of the national treatise, Modern Workers’ Compensation Law (West-Thomson-Reuters). For over 4 decades the Law Offices of Jon L Gelman 1.973.696.7900 jon@gelmans.com has been representing injured workers and their families who have suffered occupational accidents and illnesses.

Workers’ Compensation Benefits for Injured Workers Continue to Decline While Employer Costs Rise

Study Finds Benefits as a Share of Payroll Approach Lowest in Three Decades

Workers’ compensation benefits as a share of payroll for injured workers continue to decline even as employment grows and overall employer costs increase, according to anew report from the National Academy of Social Insurance (the Academy).

Spoliation of Evidence: Sanctions Reversed in Employer Fraud Case

Where an employer was unable to retrieve unfamiliar accounting records because his computer was “totally broke down,” and he tossed it out, a NJ Appellate Court overruled the Trial Court’s imposed discovery sanctions.

The case involved a claim brought by both, Liberty Mutual Insurance Company [LM] and the State of New Jersey [NJ], against an employer, and their accountant.  At the employer’s request his acceptant allegedly maintained two sets of payroll records. 

One set was the “big payroll roll,” [between $2 and $3 million], and the other set was labeled the “small payroll [$5000,000.]” The employer was charged with fraudulently paying premiums for workers’ compensation based upon the small payroll.

An audit by LM of the employer’s payroll records, initiated after  an anonymous telephone call, revealed the discrepancy that eventually resulted in charges being brought by the NJ State Office of Insurance Fraud Prosecutor.

During the discovery phase of the case, the employer was unable to timely produce QuickBooks accounting records from his computer. The resulting discovery sanctions were imposed. They resulted in a cascading series of legal determinations resting in a judgment against the employer.

The Appellate Court held that the discovery sanction were too harsh. It reversed and remand the case for further proceedings.

Liberty Mutual Insurance Company v. Viking Industrial Security, Inc., 2014 WL 51615 (N.J. Super. A.D.) Decided January 9, 2014

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Jon L. Gelman of Wayne NJ is the author NJ Workers’ Compensation Law (West-Thompson) and co-author of the national treatise, Modern Workers’ Compensation Law (West-Thompson). For over 4 decades the Law Offices of Jon L Gelman  1.973.696.7900  jon@gelmans.com  have been representing injured workers and their families who have suffered occupational accidents and illnesses.

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Workers compensation rates to decline in Oregon in 2014

Oregon has been notorious in limiting benefits for injured workers. Today's post was shared by WCBlog and comes from www.oregonlive.com

Oregon employers next year, on average, will pay $1.63 per $100 of payroll for workers' compensation insurance. That figure covers the pure premium, the premium assessment, the Workers' Benefit Fund assessment and insurer profit and expenses. Figures above have been adjusted to reflect the 2012 mix of employment and payroll. Oregon Department of Consumer and Business Services Following two years of increases, state officials say workers' compensation insurance rates should decline for most employers in 2014. The Oregon Department of Consumer and Business Services said last week that the "pure premium" - the portion set by the state - will drop on average by 7.6 percent. That does not include insurer expenses and profit. It also does not include smaller taxes that cover the state's administrative costs, reserves for self-insured employers and employer groups and a fund for injured worker benefits and return-to-work programs. Including those costs, premiums will average $1.63 per $100 of payroll in 2014, down from $1.75 in 2013, a 6.9 percent decrease, state officials said. Actual rates will vary by industry, the insurer and by individual employer claim experience and payroll size. But the construction and manufacturing sectors, both historically hazardous industries, should see drops of 11 percent and 8.5 percent respectively, said John Shilts, the state's workers' compensation division administrator. "The performance of construction and manufacturingin...

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