NJ S794

Expands the definition of "employee" for workers' compensation purposes to include S corporation shareholders who actively perform services for the corporation, in addition to existing categories of self-employed persons, limited liability partnership partners, limited liability company members, and partnership partners

Clarifies that "employee" includes those who perform services for financial consideration specifically in the form of a salary or wage

Allows businesses, partnerships, LLCs, and S corporations to elect workers' compensation coverage for their partners, members, or shareholders at the time of policy purchase or renewal, with coverage unable to be withdrawn during the policy term

Exempts these business entities from mandatory workers' compensation insurance requirements unless they employ at least one traditional employee who is not an owner, partner, member, or shareholder actively performing services

Takes effect 180 days after enactment and applies to all policies issued on or after that date