This bill amends the New Jersey workers' compensation law to clarify the definition of "employee" and the insurance requirements for certain business structures, particularly S corporations. It specifies that an individual who is the sole shareholder and only person performing services for an S corporation will not automatically be considered an "employee" for the purposes of receiving benefits and paying premiums unless the corporation opts to obtain coverage for that individual. Additionally, the bill establishes that a self-employed person, partners in a limited liability partnership, members of a limited liability company, or partners in a partnership who actively perform services for their business will be deemed employees for coverage purposes if the business elects to provide such coverage.

The bill also introduces new provisions regarding the responsibilities of insurers and the application process for workers' compensation coverage. It states that insurers will not be liable for damages if a business fails to elect coverage for self-employed individuals unless the insurer's actions are willful or grossly negligent. Furthermore, the bill mandates that applications for workers' compensation must include notices about the availability of coverage for self-employed individuals and the implications of not electing such coverage. The act will take effect 180 days after enactment and will apply to all policies issued thereafter.