Senate panel to examine state's worker comp system

Hearing to review reports of years-long waits by thousands of employees - ". . . Sarlo said he is convening the May 5 hearing in response to a series of articles in The Star-Ledger that showed how bureaucratic delays, politics and poor state oversight have left thousands of injured workers waiting years for the relief promised by the compensation system. "

Problems with New Jersey's $1.8 billion workers' compensation system will be the subject of a special hearing next month before the Senate Labor Committee, commit tee chairman Paul Sarlo (D-Ber gen) announced yesterday.

Sarlo said he is convening the May 5 hearing in response to a series of articles in The Star-Ledger that showed how bureaucratic delays, politics and poor state oversight have left thousands of injured workers waiting years for the relief promised by the compensation system.

"It's appropriate to take a close look at the workers' compensation system to see whether it can be made more efficient," said Sarlo. "The recent media focus on the system gives us a chance to see if we can make it a better, fairer program so nobody falls through the cracks."

Set up almost a century ago to protect factory owners from expensive lawsuits, the workers' comp system is designed to provide workers with prompt medical treatment and replacement of lost earning capacity without protracted legal wrangling.

State law requires every employer to buy compensation insurance for their workers. But state Labor Department officials concede thousands of employers ig nore the requirement, leaving taxpayers, charity organizations or other employers to provide medical treatment for the uninsured employees who get injured.

The Star-Ledger series also found thousands of workers whose compensation benefits were delayed for years while insurers or state attorneys wrangled over the terms of their injuries or treatment.

Employers pay about $1.8 billion in workers' compensation premiums each year, with benefit payouts totaling about $1.15 billion.

State Sen. Stephen Sweeney (D-Gloucester), an iron workers union official who is Senate majority leader, has proposed numerous bills to boost benefits under workers compensation. Last week he called the system "completely dysfunctional," and said officials need to "completely take it apart and put it back together again so it benefits employers and employees."

New Jersey's system has not been seriously amended since 1979.

Sarlo said his hearing will fea ture testimony from state Labor Commissioner David Socolow and other invited speakers.

"Supporters of the current workers' comp system maintain that it is working well, but critics claim it needs an overhaul," Sarlo said. "The hearing will give us a chance to find the best approach for moving forward on behalf of employers and workers alike."