Bill Text: NJ A5125 | 2016-2017 | Regular Session | Introduced
Bill Title: Concerns availability of certain insurance for employers of self-directed employees in Division of Developmental Disabilities in DHS.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2017-07-13 - Introduced, Referred to Assembly Human Services Committee [A5125 Detail]
Download: New_Jersey-2016-A5125-Introduced.html
Sponsored by:
Assemblyman DANIEL R. BENSON
District 14 (Mercer and Middlesex)
Assemblywoman VALERIE VAINIERI HUTTLE
District 37 (Bergen)
Assemblywoman PATRICIA EGAN JONES
District 5 (Camden and Gloucester)
SYNOPSIS
Concerns availability of certain insurance for employers of self-directed employees in Division of Developmental Disabilities in DHS.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the availability of certain insurance for employers of self-directed employees and supplementing Title 30 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. The Department of Human Services shall require an entity, which has entered into a contract with the State to provide fiscal intermediary and financial cash and counseling services on behalf of the department, to act as a broker for recipients of services through the Division of Developmental Disabilities, or their authorized representatives, who employ self-directed employees to purchase employment practice liability insurance.
2. This act shall take effect upon the issuance, renewal, or extension of any contract between a State entity and a private entity to provide fiscal intermediary and counseling services, or similar services, for the Department of Human Services.
STATEMENT
This bill requires the Department of Human Services to ensure that recipients of services through the Division of Developmental Disabilities (DDD), or their authorized representatives, who act as employers when hiring self-directed employees are given the opportunity to purchase employment practice liability insurance (EPLI).
On July 1, 2017, the department is entering into a new contract with a private entity to provide fiscal intermediary and financial cash and counseling services on behalf of the department for recipients of services in the department who act as employers when hiring self-directed employees. Recipients of services through DDD will be transitioning from an Agency of Choice Model to a Fiscal/Employer Agent Model.
Prior to July 1, 2017, recipients of DDD services, or their authorized representatives, who choose to hire self-directed employees, use an Agency of Choice Model in which self-directed employees are employed by a separate agency, referred to as the agency of record. The agency of record is responsible for hiring the self-directed employees and managing tax, labor, and insurance issues related to being an employer.
After July 1, 2017, recipients of DDD services, or their authorized representatives, will be transitioned to a Fiscal/Employer Agent Model. In this model, recipients, or their authorized representatives, will be responsible for hiring the self-directed employees and managing more of the tax, labor, and insurance issues related to being an employer.
Individuals who will be acting as employers after July 1, 2017 have expressed concern that the new Fiscal/Employer Agent Model will not adequately protect them against cases of certain employer liability issues, such as discrimination claims. This bill will ensure that these individuals are given the opportunity to purchase EPLI.
EPLI covers employers against claims or lawsuits filed by employees, former employees and employment candidates regarding their employment interaction with an employer. EPLI insures against claims of discrimination, sexual harassment, wrongly termination, infliction of emotional distress and breach of contract, and violation of any leave laws.
This bill will require the fiscal intermediary to act as a broker to facilitate the purchase of employment practices liability insurance for the individuals, or their authorized representatives. The current contract between the fiscal intermediary and the department only specifies that the fiscal intermediary is required to facilitate the purchase of workers' compensation for these individuals, or their authorized representatives. These changes will be effective upon the issuance, renewal, or extension of a contract to provide these services.
