ASSEMBLY LABOR COMMITTEE

STATEMENT TO

ASSEMBLY, No. 361

with committee amendments

STATE OF NEW JERSEY

DATED: FEBRUARY 22, 1996

      The Assembly Labor Committee reports favorably Assembly Bill No. 361 with committee amendments.

      As amended by the committee, this bill requires the Division of Workers' Compensation to order an immediate termination or denial of workers' compensation benefits with respect to a claim if the division finds that the claimant has willfully obtained or attempted to obtain benefits by knowingly making, when making that claim, a false statement or representation concerning any fact or thing material to that claim for the purpose of obtaining those benefits. The division may order, with respect to the claim, a forfeiture of all rights of compensation or payments sought.

      The bill requires an employee who receives benefits to which the employee is not entitled to repay the sum of the benefits plus simple interest to the employer or have it deducted from future benefits, and requires the division to issue an order providing for the repayment or deduction.

      The bill requires the employee to repay or have deducted any benefits wrongly paid, not just indemnity benefits.

      The committee amendments require that when the fraudently-obtained benefits are repaid or deducted, simple interest be added to the repayment or deduction.

      This bill was pre-filed for introduction in the 1996 session pending technical review. As reported, the bill includes the changes required by technical review which has been performed.