NJ Workers Compensation Rate Chart 2018: How Employers Set Premiums

Understanding the 2018 Rate Chart

The New Jersey Department of Labor and Workforce Development publishes an annual workers' compensation rate chart that lists premium rates per $100 of payroll for each occupation code. In 2018, the chart reflected a 5.4% increase over the previous year, driven largely by higher claim costs in high‑risk industries.

How Rates Are Determined

Premiums are calculated using three factors: the employer's loss experience, the state's experience rating, and a state‑wide safety incentive factor. Employers with a history of fewer or lower‑value claims receive a lower rate, while those with a high claims history face a higher rate. The 2018 chart applied a 1.5% safety bonus for companies that achieved a 10‑year record of zero fatal accidents.

Occupation Code Breakdown

Each industry is assigned a specific code (e.g., 21‑01 for construction laborers, 41‑01 for office clerks). The rate per $100 of payroll varies by code; construction codes generally sit above $0.80, while clerical codes are below $0.40. Employers must file their payroll data under the correct code to receive an accurate premium estimate.

Impact of Payroll Size

Premiums are prorated by payroll. A small business with $200,000 annual payroll in a high‑risk occupation may pay around $1,600 in premiums, whereas a large firm with $10 million payroll in the same occupation could pay $80,000. The 2018 rate chart used a payroll threshold of $1,000,000 for rate adjustments, meaning larger employers see a marginally lower rate per $100 due to bulk‑rate discounts.

Managing Premium Costs

Employers can lower their 2018 premium by implementing safety training, reducing high‑risk tasks, or reclassifying workers to lower‑risk codes if applicable. The state also offers a voluntary safety program that, if completed, grants a 2% premium reduction.

Accessing the 2018 Chart

The full 2018 workers' compensation rate chart is archived on the NJ Department of Labor website. Employers can download the PDF, cross‑reference their occupation code, and calculate an estimated premium using the provided formula.