WCAX reports that “A new law stiffens penalties for businesses who don’t carry [workers' compensation] insurance, or who misclassify workers.”

This is part of a Vermont Department of Labor effort to make sure companies not only have workers’ compensation insurance, but are carrying the right kind as well.

“The state labor commissioner, Patricia Moulton Powden, says the law is targeted toward businesses that try to lower costs by classifying employees as independent contractors,” writes WCAX.

Powden says that having the right insurance is a smart choice. An employer could stand to lose everything in a civil law suit if he does not carry workers’ compensation insurance.

According to WCAX, noncompliance among businesses will result in a high fine and inability to bid on any state contract for three years.

If you or someone you know has been injured in the workplace, call the New Jersey workers’ compensation lawyers at 1-800-34-NJ-LAW to help you collect on your Workers’ Compensation benefits.