New Workers’ Comp Reforms Make N.J. Business Climate More Friendly

CRANBURY, N.J.—Sept. 15, 2107—Governor Chris Christie signed reforms to workers’ compensation laws into effect this week (Senate Bill 2512) that makes the business climate more friendly by allowing companies the option to keep their own workers’ compensation policies if they decide to work with a professional employment organization (PEO) like Abel HR.

“New Jersey is being business friendly and this new law affords the PEO industry the ability to help additional clients,” said Jim Bell III, executive vice president of Abel HR in Cranbury, who is responsible for legislative issues and advocacy. “Allowing clients the option to keep their existing policies makes it even easier for them to transition to a PEO like Abel HR because they can stay with coverage that they currently have.”

Workers’ compensation is mandated by state statute and all employers must provide the insurance for all employees.

A company like Abel HR, which has been providing companies with industry leading benefits and service for 25 years, is a co-employer and provides benefits and insurance to its co-employees.

Under the new law signed into effect this week, ownership of the workers’ comp policy can now be written in the client’s name. Clients can now either come onto a policy Abel HR offers or stay on their pre-existing policy. Before the change in the law, the insurance would have to be in both the client’s name and the PEO’s name and only permitted the PEO, in the role of the co-employer, to provide such coverage for worksite employees.

According to the new law, if the client keeps their own workers’ comp insurance, the PEO does not take on responsibility for that policy and is not held responsible workers’ compensation, safety, risk and hazard control at the client worksite. Abel HR will continue to assist the client in workers’ comp and safety matters whenever possible.

The new law goes into effect immediately, although insurance carriers will have up to 180 days following enactment of SB2512 to comply with the new notice provisions.

Businesses that use a PEO like Abel HR see increased revenues and profitability, according to a September 2017 National Association of Professional Employer Organization’s whitepaper “PEO’s: Good for Small Businesses and Their Employees” by McBassi & Company. PEO users expect 40 percent more revenue growth than non-PEO users and 16 percent were more likely to report an increase in profitability, up to twice that of comparable non-PEO firms. The study also found that employees at PEO client firms view the business as taking the right steps to succeed, grow and innovate with higher levels of employee engagement and retention.


About Abel HR

Abel HR helps entrepreneurs grow their business by safeguarding and servicing their employees, a company’s lifeblood. For nearly 25 years, Abel HR has transformed the burden of administration into a tool that allows business owners to efficiently align mission with resources. Abel HR’s services allow entrepreneurs to focus on their business, as human resource professionals spend more time recruiting, hiring and managing talent. The family-owned company provides employment and human resources services that includes payroll administration, employee benefits and risk management, which encompasses Workers’ Compensation, Employment Practice Liability Insurance (EPLI) and compliance with various safety regulations. Abel HR’s dependable and attentive service combined with a friendly, familiar face, is its signature. For more information, entrepreneurs can visit or contact Abel HR at or (800) 400-1968.