Short answer: Yes. New Jersey requires every employer not covered by a federal program to carry workers' compensation insurance or be approved to self-insure, according to the Division of Workers' Compensation. There's no minimum payroll or headcount. Failing to insure is a disorderly persons offense, a fourth-degree crime if willful, with penalties up to $5,000 per 10-day period.
Who must insure
The Division's employer requirements page states that every New Jersey employer not covered by a federal program must have workers' compensation insurance or be approved to self-insure. That applies to corporations, partnerships, LLCs and sole proprietorships with employees. The Division's Employer's Guide explains the details. Public agencies must provide benefits but aren't required to buy insurance.
What counts as an employee
New Jersey looks at the working relationship, not job titles or 1099 forms. Part-time and seasonal employees are covered. A sole proprietor or partner is not automatically covered but can be included by endorsement.
Posting and reporting
Employers must post the state-prescribed notice of coverage in a conspicuous place at each worksite. The Division also runs a cross-match program that compares employer records against coverage filings, so a lapse can surface without any injury.
Consequences of not insuring
According to the Division:
- Failing to insure is a disorderly persons offense, and a crime of the fourth degree if willful.
- Penalties can be assessed up to $5,000 for the first 10 days and up to $5,000 for each additional 10-day period.
- An uninsured employer is liable for benefits owed to an injured worker, and the Uncompensated Employers' Fund may pursue repayment.
Out-of-state employers
If your employees work in New Jersey, confirm with your carrier that New Jersey is listed in Item 3A or properly covered under Item 3C of your policy before work begins.
Bottom line
In New Jersey, hiring anyone means buying coverage the same day. See our workers' compensation insurance overview.
Questions? Contact Alishahi Insurance or call (877) 711-4545. See insurance in New Jersey.
Frequently asked questions
Is workers' comp required in New Jersey?
Yes. Every employer not covered by a federal program must insure or be approved to self-insure.
Is there a minimum number of employees in New Jersey?
No. There is no headcount or minimum payroll threshold.
What is the penalty for no workers' comp in New Jersey?
A disorderly persons offense, a fourth-degree crime if willful, and penalties up to $5,000 per 10-day period.
Do New Jersey employers have to post a notice?
Yes. A state-prescribed notice of coverage must be posted conspicuously at each worksite.
Are sole proprietors covered in New Jersey?
Not automatically, but they can be included by endorsement.
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. This isn't legal, tax or financial advice or a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.