On Thursday, the Assembly Labor Committee favorably reported A-5659, which increases workers’ compensation contingency fees.
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.
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 as to why this was, and a plan enacted to reduce these premium costs to municipal taxpayers is enacted.
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.
Since this legislation is likely to continue to advance during the remaining days of this legislative session, we encourage you to reach out to your legislators and share your thoughts on A-5659.
Contact: Paul Penna, Senior Legislative Analyst, ppenna@njlm.org, 609-695-3481, x110.