Governor Chris Christie (R) signed Senate Bill 2512 into law today. The new law allows a client or PEO to provide workers’ compensation coverage for worksite employees. Previously, New Jersey law only permitted the PEO to provide such coverage for worksite employees. A client company that assumes the responsibility of providing workers compensation coverage to worksite employees will be required to provide a copy of the client service agreement to its insurance carrier prior to the issuance of the policy or upon partnering with a PEO. In the event that a client company’s policy is cancelled pursuant to New Jersey law, the insurance carrier is required to provide the PEO with copies of all notices required to be issued to the client company by regular mail.
In addition, the law modernizes the state’s PEO statute by:
- Allowing the PEO and client company the flexibility to allocate responsibility for the direction and control over management of safety, risk and hazard control at the client worksite; and
- Requiring the client to accurately report wages to the PEO.
In recent months, both chambers passed the bill by unanimous vote. NAPEO worked to enhance the legislation throughout the legislative process and testified in support of the bill. The new law goes into effect immediately, though insurance carriers will have up to 180 days following enactment of SB2512 to comply with the new notice provisions.
Blog courtesy of Engage PEO and NAPEO. Engage is one of our premier PEO partners.