New Jersey employers will be facing two important changes to the Workers Compensation system in the New Year. These changes will bring additional costs for employers (while one improves benefits to the injured worker as well) and one change will potentially impact hiring processes for employers.

NJ Work Comp benefits to increase by 10%

As noted in John Geaney’s NJ Work Comp blog, work comp benefits in New Jersey will be increasing by 10% in 2022. This increase impacts weekly payments to employees who are out on workers comp as well as impacting the overall payments for permanent disability for a claimant and increasing the lawyers fees that are paid. One thing to remember is that the increase in payments for permanency awards still happens even if the injured employee even if there was no impact to their wages.

Employers can work to proactively reduce increased workers compensation costs by using customized job descriptions that are up to date, objective and accurately reflect the minimum essential physical and postural demands of the job title. These job descriptions can be used for post-offer pre-employment physical abilities testing, to help guide physicians and physical therapists in rehabilitating an injured employee safely and efficiently, to help identify appropriate modified duty tasks to help return the employee to the workforce as they recover, and to make accurate comparisons of physical abilities as they relate to essential job demands during a Functional Capacity Evaluation.

Gov. Murphy signs A2617 providing preference to employees who have reached MMI

The additional change to NJ Worker’s Compensation occurred in September of this year when Governor Phil Murphy signed A2617 which provides injured workers who have reached MMI hiring preference when they can no longer return to the position in which they were injured. The law does not fully define how the practice of providing preference to these employees will be implemented. The law applies to employers with 50 or more employees.

However, the one area that is defined within the law is that the injured employee must be able to meet the essential functions of the position for which they are applying.

“Following a work-related injury, an employer shall provide a hiring preference to an employee who has reached maximum medical improvement (MMI) and is unable to return to the position at which the employee was previously employed for any existing, unfilled position offered by the employer for which the employee can perform the essential functions of the position.”

This new law adds additional importance for an employer to have accurate, objective, and up to date job descriptions for each job title within their organization. Job descriptions should accurately define the minimum essential physical and postural demands related to the essential tasks performed within a job title. The descriptions should be kept up to date and take into account changes in policies, procedures, and even the items utilized to perform tasks – we have seen that shortages of supplies and mitigation procedures have altered how job tasks are performed. If these changes have become permanent in nature, the job description should reflect those changes and not reflect how the job was performed several years ago.

NJ Ergonomics can help employers to better define their job descriptions with accurate and objective measurements of essential job tasks as measured onsite for an employer. We can assist with helping employers put together defensible post-offer pre-employment testing programs to help identify whether job candidates meet the essential physical and postural demands of the position for which they are being hired.