This bill amends existing workers' compensation law in New Jersey to establish personal liability for principal owners of employers who fail to secure workers' compensation coverage. Specifically, it introduces joint and several liability for penalties imposed on employers for non-compliance, meaning that both the employer and any principal owner can be held accountable for penalties related to unpaid workers' compensation insurance. The bill defines a principal owner as any individual who holds a beneficial interest or ownership in the employer or has the ability to control the employer.

Additionally, the bill enhances the rights of the uninsured employers' fund by allowing it to pursue claims against both the employer and principal owners for compensation and benefits paid to employees or their dependents. This includes the fund's entitlement to all rights and benefits of the employee against the employer, thereby broadening the scope of accountability for unpaid workers' compensation claims. The changes aim to ensure that employees receive the necessary compensation while holding both employers and their principal owners responsible for compliance with workers' compensation laws.

Statutes affected:
Introduced: 34:15-120.1, 34:15-120.5