Improves Workers’ Comp Laws for Small Startups
Senator Anthony Bucco’s legislation to assist New Jersey entrepreneurs and reform workers’ compensation laws has passed the New Jersey Senate.
Bucco’s legislation, S-967, revises the definition of “employer” within the workers’ compensation law to make certain exceptions.
Sen. Anthony Bucco’s legislation to assist entrepreneurs and reform workers’ compensation laws has unanimously passed the Senate. (©iStock)
“For a one-person business or partnership just staring out, acquiring worker’s compensation insurance solely for themselves is an onerous and expensive mandate,” said Bucco (R-25). “Starting a business in New Jersey is expensive as it is, so we should look for every opportunity to lower unnecessary costs for those creating companies from the ground up. Giving new business owners this option will allow them to use more of their money to grow their operations and possible higher employees in the future.”
Senator Bucco and his father, the late Senator Anthony R. Bucco, introduced this legislation in the last session after speaking with a constituent concerning the high costs of doing business.
“A local business owner was the sole employee of a startup operating out of his home. He had yet to earn any revenue with his new company, and he was stunned when he was threatened with a penalty for not obtaining workers’ compensation for himself,” said Bucco (R-25). “I am thankful this constituent came forward to tell me about this predicament. New Jersey can and must do more to create a business-friendly environment.”
Under the bill, an S corporation that has one sole employee, who is also the sole shareholder, may choose whether or not to obtain workers’ compensation coverage.
The legislation also provides that a partnership is not subject to the workers’ compensation law if there are only two partners, and if there is no other individual or individuals that perform services for the partnership.
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