On Thursday, the full Assembly was scheduled to vote on A-5659, which increases Workers’ Compensation contingency fees, but was removed from the agenda prior to the voting session.
As we reported last week, the Assembly Labor Committee favorably reported this bill last week. This bill revises the workers’ compensation law to revise the cap on contingency fees to a prevailing party in workers’ compensation matters from 20% to 25%, and it expands the application of the fees to orders for payment of medical and temporary disability benefits on motions and orders approving settlements of any kind.
The League is a member of a broad coalition opposing this proposal including the African American Chamber of Commerce of New Jersey, American Property Casualty Insurance Association, Associated Builders and Contractors – New Jersey Chapter, Chamber of Commerce of Southern New Jersey, Chemistry Council of New Jersey, Commerce and Industry Association of New Jersey, Fuel Merchants Association of New Jersey, Garden State Municipal Joint Insurance Fund, Government Finance Officers Association of New Jersey, Homecare and Hospice Association of New Jersey, Insurance Council of New Jersey, Municipal Excess Liability Joint Insurance Fund, National Association of Mutual Insurance Companies, National Federation of Independent Business, New Jersey Apartment Association, New Jersey Association of Counties, New Jersey Builders Association, New Jersey Business and Industry Association, New Jersey Cable Television Association, New Jersey Civil Justice Institute, New Jersey Dental Association, New Jersey Food Council, New Jersey Independent Electrical Contractors Association, New Jersey Motor Truck Association, New Jersey Propane Gas Association, New Jersey Retail Merchants Association, New Jersey Self Insurers’ Association, New Jersey State Chamber of Commerce, New Jersey State Funeral Directors Association, Public Entity Joint Insurance Fund, and Shipping Association of New York and New Jersey.
The League is grateful that the Division of Local Government Services approved Local Finance Notice 2023-04 which provided appropriation increases in excess of 3.5% for the following budget appropriations: garbage and trash removal and disposal; recycling; PERS and PFRS employer contributions; gasoline and diesel fuel; and worker’s compensation insurance in CY2023/SFY2024. The League has been advocating for these items to be outside the levy cap on a permanent basis.
At the 2023 New Jersey State League of Municipalities Annual Conference, Resolution 2023-14 Urging Action to Provide Relief from Increased Insurance Costs noted that New Jersey has the highest workers’ compensation premiums in the nation and urged that no further legislation be considered until an analysis of why this is, and a plan is enacted to reduce these premium costs to municipal taxpayers.
Consistent with the League Conference Resolution 2023-14, the League opposes this legislation because the increased costs further hamstring municipalities that must comply annually with a 2% levy cap.
Despite the events of this week, this legislation is likely to be considered during the remaining days of this legislative session, we encourage you to reach out to your Assemblymembers and Senators and share your thoughts on A-5659.
Contact: Paul Penna, Senior Legislative Analyst, ppenna@njlm.org, 609-695-3481, x110.