LEGISLATIVE FISCAL ESTIMATE
SENATE, No. 3884
STATE OF NEW JERSEY
221st LEGISLATURE
DATED: MARCH 6, 2025
SUMMARY
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Synopsis: |
Establishes “Occupational Heat-Related Illness and Injury Prevention Program” and occupational heat stress standard in DOLWD. |
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Type of Impact: |
Increase in annual State expenditures and revenues; annual local expenditure increase. |
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Agencies Affected: |
Department of Labor and Workforce Development; the Judiciary; Department of Agriculture; Department of Health; Rutgers University; local governments; school districts. |
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Office of Legislative Services Estimate |
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Fiscal Impact |
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One-Time State Cost Increase |
At least $65,000 |
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Annual State Cost Increase |
At least $615,000 |
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Annual State Revenue Increase |
Indeterminate |
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Annual Local Expenditure Increase |
Indeterminate |
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· The Office of Legislative Services (OLS) estimates that the bill will generate $65,000 in one-time State costs to the Department of Labor and Workforce Development. The OLS estimates that annual costs to the department will be at least $615,000.
· State and local government employers, including all counties, municipalities, and school districts in the State, will incur an indeterminate amount of additional costs to comply with the bill. Some of these employers may have one-time costs to develop their own heat-related illness and injury prevention plan or to modify the model plan developed by the department. All will incur an indeterminate amount of annual workload increases to provide the required education and training on the plan to their employees.
· The Judiciary may also incur some additional annual costs because the bill permits employees to bring civil actions against employers that violate their rights under the bill. The OLS lacks the informational basis to determine how frequent such violations will be to arrive at an estimate for the related court costs.
· An indeterminate amount of fine and penalty revenue may accrue to the State from violations of the bill’s provisions, but the extent of employer non-compliance cannot be reliably forecast to estimate the associated revenues.
BILL DESCRIPTION
This bill requires the Department of Labor and Workforce Development to establish by rule a heat stress standard for indoor and outdoor workplaces that contains the following:
1. a standard that establishes heat stress levels for employees that, if exceeded, trigger actions by employers to protect employees from heat-related illness and injury; and
2. a requirement that each employer implement an effective heat-related illness and injury prevention plan for employees, which is to be reviewed annually by the employer.
The bill is applicable to all private and public sector employees, with exceptions for amusement parks and certain operations that are directly involved in the protection of life or property.
The department is required to develop a model heat-related illness and injury prevention plan, consistent with the provisions of the bill, which employers may adopt. Employers may alternatively develop their own heat-related illness and injury prevention plan consistent with the provisions of the bill.
The bill requires the department to establish an Occupational Heat-related Illness and Injury Prevention Program to enforce the provisions of the bill. The department will have the authority to investigate and audit all employers in the State, with limited exceptions, to ensure compliance with the bill and may issue a stop-work order against an employer when violations are found. An employer has the right to appeal the order and the right to an administrative hearing on the matter. An employee may institute a civil action in Superior Court against an employer that retaliates through termination of employment, discipline, or in any other manner against the employee for exercising any rights granted by the bill.
The bill gives the Department of Agriculture the power to develop a heat standard specifically for commercial farm operators, in consultation with the Department of Labor and Workforce Development, Department of Health, and the New Jersey Agricultural Experiment Station at Rutgers University. The bill otherwise excludes commercial farms from its requirements.
Finally, the bill imposes various monetary penalties for violations of its provisions.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS estimates that the bill will generate $65,000 in one-time State costs to the Department of Labor and Workforce Development. This amount reflects the salaries and benefits for two full-time equivalent employees working for three months to develop the required regulations and the model heat-related illness and injury prevention plan. Some additional one-time costs will be incurred by the Department of Agriculture, which, in consultation with the Department of Health, Department of Labor and Workforce Development, and the New Jersey Agricultural Experiment Station at Rutgers University, is to develop a heat-related illness and injury prevention plan for all farm workers specific to operations conducted on commercial farms.
The OLS estimates that annual costs to the department will be approximately $615,000 to establish and enforce the required Occupational Heat-related Illness and Injury Prevention Program. This assumes that resources of five full-time equivalent employees, including salaries and benefits, will be required to ensure employer compliance with the provisions of the bill. The OLS notes that the department’s enforcement efforts will cover nearly all public and private sector employers in the State, with only limited exceptions for amusement parks and certain operations that are directly involved in the protection of life or property. Moreover, year-round enforcement operations will be necessary as the bill applies to both indoor and outdoor work environments.
State and local government employers, including all counties, municipalities, and school districts in the State, will incur an indeterminate amount of additional costs to comply with the bill. A certain number of these employers may have one-time costs to develop their own heat-related illness and injury prevention plans or to modify the model plan developed by the Department of Labor and Workforce Development. Annually thereafter, all of these public employers will incur an indeterminate amount of workload increases to provide the required education and training on the plan to their employees.
The Judiciary may also incur some additional annual costs because the bill permits employees to bring civil actions against employers that violate their rights under the bill. The OLS lacks the informational basis to determine how frequent such violations will be to arrive at an estimate for the related court costs.
An indeterminate amount of fine and penalty revenue may accrue to the State from violations of the bill’s provisions, but the extent of employer non-compliance cannot be reliably forecast to estimate the associated revenues.
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Section: |
Commerce, Labor and Industry |
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Analyst: |
Associate Fiscal Analyst |
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Approved: |
Thomas Koenig Legislative Budget and Finance Officer |
This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.
This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).