What Happens When Employers Fail to Insure for Workers’ Compensation?
                     WHAT HAPPENS WHEN 
AN EMPLOYER FAILS TO 
INSURE FOR WORKERS’ 
COMPENSATION?
New Jersey law requires all employers in New 
Jersey, except for public employers and 
employers of domestic workers, to provide 
workers’ compensation benefits, either 
through an insurance policy or through a 
state-approved self-insurance plan. 
FAILURE TO DO SO CAN CARRY WITH IT THE 
FOLLOWING LEGAL CONSEQUENCES:
• A disorderly person criminal charge for failing to 
insure;
• A charge for a fourth-degree crime, if the action 
was willful;
• A fine of $5,000 for the first 10 days and up to 
$5,000 for each additional 10-day period of non 
insurance; and/or
• Personal liability for officers of the company if the 
employer is a corporation.
The employer cannot discharge the penalties if it 
goes bankrupt.
When an employee is injured or killed in a work-
related accident, an employer (including the 
officers, partners, or member of a limited liability 
company) who fails to insure for workers’ 
compensation is liable for:
• Medical expenses;
• Temporary or permanent disability;
• Dependent benefits (in case of death); and
• Civil penalties.
If you think any New Jersey employer is uninsured 
for workers’ compensation, you should notify the 
appropriate authorities by calling the New Jersey 
Office of Special Compensation funds at (609) 
292-0165 or filling out and mailing or emailing a 
“Report of Non-Compliance” form. 
You may remain anonymous, but be prepared to 
give the name and exact address of the employer 
and, if you know this information, the names of 
the principal operators of the business.
If you have been injured at work, get legal help 
from an experienced 
New Jersey workers compensation attorney.
An experienced attorney can guide you throughout 
the legal process, fight for your rights, and help 
you secure the compensation you deserve.
FOR MORE DETAILS VISIT: 
WWW.DMLAWYER.COM