The “Second Injury Fund” (“Fund”) refers to a special fund established by the Workers’ Compensation Act allowing the Department of Labor to collects a surcharge on all workers compensation policies issued in New Jersey. N.J.S.A. 34:15-95. The collected monies create a fund to reduce the costs of “second injuries” on New Jersey’s employers, in order to encourage employers to hire previously-disabled workers. The Law creating the Fund was enacted in 1923, before the Americans with Disabilities Act made it impermissible to discriminate in the hiring of previously-disabled workers. See 42 U.S.C. 126.
The Fund used to be called the “2% Fund” because the surcharge was originally set at 2%. Now the surcharge is 6.76%. As of January 1, 2013. (http://www.njcrib.com/circulars/NJ1849.pdf) As of January 2017, all rating information is available only online. Practitioners use the terms “Second Injury Fund” and “2% Fund” interchangeably.
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