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N.J. workers’ comp scofflaws now face stiffer penalties

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in Compensation and Benefits,Human Resources

This summer, Gov. Jon S. Corzine signed a bill raising fines for employers that knowingly fail to provide workers’ compensation coverage for their employees.

The new law, known as the Egan & Quijano bill, also sets higher penalties for employers that misrepresent employees as independent contractors or misstate the number of employees in an attempt to reduce their workers’ compensation premiums.

The Division of Workers’ Compensation can levy a $5,000 fine on employers found to be in violation, with an additional $5,000 for each 10-day period the employer is not in compliance. The law also gives the director of the workers’ comp division the power to issue a stop-work order at each location where a violation occurred. The stop-work order will stay in effect until the director finds the employer to be in compliance.

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