NJ workers comp exempt?
Ok, so I wanted to do this mural job that I found on craigslist, but they said that you have to be workers comp exempt, which I have no idea how to do. I live in NJ and I looked up workers comp, and it said you cannot have an exemption... so is that even possible??
Here'e the ad on craigslist:
(We are a mural company based in Orlando, FL. We are looking for talented artists with some experience painting to help paint large scale murals. Artists need to be workman comp. exempt and or liability. The project will take about a month from mid Dec thru mid Jan in NJ. After project is complete a team will be picked to do touch-ups when needed.)
Answers & Comments
Verified answer
Basically, what this prospective employer is trying to tell you is, they will not accept liability should you be injured during the performance of this job. Because the State of New jersey REQUIRES all workers to be covered for industrial accidents, (including private contractors and their employees) they are required to do this. However, they have the option with private contractors to request that they carry their own accidental injury insurance, or to put up a bond in a specific amount for this purpose. In either scenario, they are then "exempt" from the responsibility toward you should you be injured.
Personally, I wouldn't work for any company that had this type of requirement. But I am not a construction, painting, or artistic contractor. You may already carry this kind of coverage for yourself. It's only smart if your self-employed, otherwise an industrial accident can wipe you out.
So that's it. They're not asking for an employee to be exempt. They are asking a prospective contractor to cover themself for industrial accidents. Either you purchase your own insurance for this purpose, or you put up a surety bond in an amount equal to that state's requirement for just such a bond. (usually around $10k, or so)
Hope that helps.
Yep, they're trying to wiggle out of covering you for workers comp.
Which they can't, in NJ.
Here's how the law reads:
The following employing entities must have workers' compensation insurance in effect:
Corporations – All corporations operating in New Jersey must maintain workers' compensation insurance or be approved for self-insurance so long as any one or more individuals, including corporate officers, perform services for the corporation for prior, current or anticipated financial consideration *.
Partnerships/LLC's – All partnerships and limited liability companies (LLC's) operating in New Jersey must maintain workers' compensation insurance or be approved for self-insurance so long as any one or more individuals, excluding partners or members of the LLC, perform services for the partnership or LLC, for prior, current or anticipated financial consideration*.
Sole Proprietorship – All sole proprietorships operating in New Jersey must maintain workers' compensation insurance or be approved for self-insurance so long as any one or more individuals, excluding the principal owner, performs services for the business for prior, current or anticipated financial consideration*.
* Financial consideration means any remuneration for services and includes cash or other remuneration in lieu of cash such as products, services, shares of or options to buy corporate stock, meals or lodging, etc.
THere are no exemptions in NJ. It sounds like they want you to carry liability insurance, also.
I would advise not working for them. If they are unethical enough to try to avoid the law, they're unethical enough to screw you over the money, too.
I was wondering much the same question