All employers with at least one employee in New Jersey must buy worker’s compensation insurance. This means you will likely be eligible for worker’s comp benefits if you are employed in the state.
State law uses two tests to determine whether the employer-employee relationship exists. If a worker meets either test, they qualify as an employee and can receive worker’s comp benefits for job-related injuries.
Under the control test, the state looks at who determines what the worker does and how, when, and where the worker performs their job duties. If the worker retains control, they may be an independent contractor. When someone else has control, the worker may be an employee.
Under the relative nature test, the state looks at whether the worker relies on the work for income and the business relies on the worker to operate. If a worker’s job meets both of these elements, the worker qualifies as an employee.
Once at least one of these tests is met, the employee will probably qualify for worker’s comp benefits, regardless of the nature of their employment. Specifically, you qualify for worker’s comp even if you:
- Work in New Jersey for an out-of-state employer
- Only work as a part-time employee
- Have a seasonal job
- Work for an independent contractor or subcontractor
New Jersey law only categorically excludes the following from the worker’s comp system:
- Unpaid interns
- Unpaid volunteers other than volunteer firefighters
- Independent contractors
- Sole proprietors with no employees
The system also exempts anyone covered by an alternative federal program. Thus, you will pursue a different type of claim under federal law for your injuries if you work as a:
- Federal employee
- Railroad worker
- Dock Worker
These workers can still pursue compensation for on-the-job injuries. But they must pursue a claim for federally mandated benefits rather than a claim under New Jersey’s worker’s comp laws.