The New Jersey Senate on Monday advanced legislation to assist New Jersey entrepreneurs and reform workers’ compensation laws.
Sponsored by Sen. Anthony Bucco, R-25th District, Senate Bill 967, revises the definition of “employer” within the workers’ compensation law to make certain exceptions.
“For a one-person business or partnership just staring out, acquiring worker’s compensation insurance solely for themselves is an onerous and expensive mandate,” Bucco said in a statement. “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 possibly hire employees in the future.”
Bucco and his late father Sen. Anthony Bucco Sr. introduced this legislation in the last session after speaking with a constituent concerning the high costs of doing business.
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 provides that a partnership is not subject to the workers’ compensation law if there are only two partners, and if there is no other person who performs services for the partnership.