Workers Comp Rates in New Jersey (NJ)
The average workers' compensation rate in New Jersey is $1.38 per $100 of payroll , effective as of 2025-01-01. This is $0.19 (16.0%) above the national average of $1.19 per $100. New Jersey has a competitive insurance market where employers can purchase workers' comp from private insurers. New Jersey requires workers' compensation for all employers. The state has a competitive market with rates above the national average due to high benefits and a litigious environment.
Workers Comp Requirements in New Jersey
Workers Comp Rates by City in New Jersey
The table below shows average workers' compensation rates for 5 cities in New Jersey, sorted by rate from highest to lowest. Rates range from $1.32/$100 in Edison to $1.44/$100 in Paterson. Actual rates depend on your industry class code and claims history.
| City | Rate/$100 | Est. Cost ($250K) | vs. State Avg | vs. National Avg | Notes |
|---|---|---|---|---|---|
| Paterson | $1.44 | $3,600 | +$0.06 | +$0.25 | -- |
| Newark | $1.42 | $3,550 | +$0.04 | +$0.23 | Largest city |
| Jersey City | $1.40 | $3,500 | +$0.02 | +$0.21 | -- |
| Trenton | $1.35 | $3,375 | -$0.03 | +$0.16 | State capital |
| Edison | $1.32 | $3,300 | -$0.06 | +$0.13 | -- |
How New Jersey Compares to Other States
Below is a comparison of New Jersey with five states that have similar workers' compensation rates. This comparison helps illustrate where New Jersey stands nationally in terms of workers' comp costs and requirements.
| State | Rate/$100 | Type | Min Employees | Waiting Period | Est. Cost ($250K) |
|---|---|---|---|---|---|
| New Jersey (NJ) | $1.38 | Competitive | 1+ | 7 days | $3,450 |
| Florida (FL) | $1.40 | Competitive | 4+ | 7 days | $3,500 |
| Washington (WA) | $1.40 | Monopolistic | 1+ | 3 days | $3,500 |
| District of Columbia (DC) | $1.35 | Competitive | 1+ | 3 days | $3,375 |
| Louisiana (LA) | $1.35 | Competitive | 1+ | 7 days | $3,375 |
| Rhode Island (RI) | $1.42 | Competitive | 1+ | 3 days | $3,550 |
Workers Comp Cost Examples for New Jersey
The following table shows estimated annual workers' compensation costs for various payroll sizes in New Jersey using the state average rate of $1.38 per $100 of payroll. Actual costs depend on your industry class code and experience modifier.
| Annual Payroll | Est. Annual Premium | Est. Monthly Cost |
|---|---|---|
| $50,000 | $690 | $58 |
| $100,000 | $1,380 | $115 |
| $250,000 | $3,450 | $288 |
| $500,000 | $6,900 | $575 |
| $1,000,000 | $13,800 | $1,150 |
| $2,500,000 | $34,500 | $2,875 |
Frequently Asked Questions About Workers Comp in New Jersey
How much does workers comp cost in New Jersey?
The average workers' compensation rate in New Jersey is $1.38 per $100 of payroll. For an employer with $250,000 in annual payroll, that works out to approximately $3,450 per year. However, actual rates vary significantly by industry. Office workers may pay as little as $0.20/$100 while high-risk industries like construction or logging can exceed $10/$100.
Is workers comp required in New Jersey?
Yes. New Jersey requires workers' compensation for employers with 1 or more employees. The following are exempt: Sole proprietors, partners, certain corporate officers, casual employees. Penalties for noncompliance include: Criminal offense, up to $5,000 fine per 10-day period and/or 18 months imprisonment.
Where can I buy workers comp in New Jersey?
New Jersey has a competitive workers' compensation market. You can purchase coverage from any licensed private insurance company, through an insurance agent or broker, or in some cases through a state-sponsored program. Shopping multiple carriers is recommended to find the best rate for your industry and claims history.
What is the waiting period for workers comp in New Jersey?
The waiting period in New Jersey is 7 days. This means an injured worker must wait 7 days before receiving wage replacement benefits. Medical benefits typically begin immediately. If the disability extends beyond a certain number of days (usually 14-21 depending on the state), the waiting period benefits are paid retroactively. The maximum weekly benefit in New Jersey is $1,099.
Estimate Your Workers Comp Cost
Use our workers comp cost calculator to estimate your premium based on your specific payroll in New Jersey, or browse all 50 states to compare workers' comp rates across the country. Remember that actual rates depend on your industry classification, claims history, and experience modification rate.