Oops! Something went wrong while submitting the form.
The Empire State is famously known for being one of the most populous states in America. From the bustling crowds and attractions of the Big Apple to the mountain towns and small businesses in the Adirondacks, New York is home to businesses of all shapes and sizes.
With a diverse and robust economy, New York State offers countless opportunities for businesses to thrive. Protecting your company and employees with workers' compensation insurance is essential to ensuring the well-being of your workforce and the longevity of your business in the great state of New York.
Here’s everything you need to know about New York workers’ compensation.
In New York, workers' compensation is a state-mandated insurance program for almost all employers. Coverage provides medical and financial protection for employees who suffer work-related injuries or illnesses.
Without workers’ compensation, the cost of an injured employee’s medical treatment could become the responsibility of your business.
The New York Workers Compensation Board administers the workers’ comp law in the state. The law requires employers with one or more employees to be covered by an active workers’ compensation insurance policy.
New York businesses can get workers’ comp coverage through:
In New York, workers' compensation cases are "no-fault," which means that the amount a claimant receives cannot be reduced due to their own negligence, nor can it be increased due to their employer's fault.
Employees can verify online if their employer has coverage.
Five major players are responsible for governing New York State’s workers’ compensation system.
The primary is the New York State Workers’ Compensation Board. The board oversees claims settlements and ensures businesses protect their employees by having active workers’ compensation coverage.
To operate effectively in such a state with such a large population, the board has nine district offices across New York:
The other four players are:
Policies include protection for all employees. In New York State, this includes:
These employees are legally required to be covered with workers’ comp by their employer.
The following are exempt from workers’ comp if they have no employees:
There are also certain exemptions for non-profits in New York State. Non-profit organization exemptions include:
Workers' compensation covers a range of work-related injuries and illnesses, including physical injuries resulting from an accident and occupational diseases developed over time due to job conditions.
New York workers’ comp insurance provides three types of benefits for work injuries:
Depending on the year an employee was injured, they will be eligible for a weekly benefit rate up to a maximum amount. Each year’s amount does not increase if new maximum benefits become adopted into law.
In the event of a work-related injury or illness:
Employees in New York should report their injury to their employer immediately. Their employer has ten days to report the injury to their workers’ compensation insurance provider.
The employee should immediately seek medical attention.
If an employer’s insurance provider accepts the claim, the worker may begin receiving benefits to cover medical expenses and lost wages.
Following their recovery, a worker is expected to resume work safely. If a work injury has left an injured employee unable to do any type of work, the employee might be entitled to permanent disability benefits.
Employees can choose their doctor for work-related injuries in New York — but there are a few restrictions.
For any non-life-threatening medical treatment, the injured worker must check if their employer uses a Preferred Provider Organization (PPO) to cover their employees’ medical care. If they do, the injured worker must seek treatment with one of the PPO specialists within 30 days.
Once the 30-day period is over, the employee can switch doctors as long as they’re certified by the state’s Workers’ Compensation Board.
Employees are entitled to a portion of their lost wages if their injury or illness affects them in one or both of the following ways:
Lost wage benefits are not paid for the first seven days of the disability unless the period of missed work extends beyond 14 days. After 14 days, employees can receive lost wage benefits for all the time they were unable to work.
Injured workers who disagree with the outcome of their claim can file an appeal with the New York Workers Compensation Board.
Unless exempt, employers in New York must carry workers' compensation insurance or qualify for self-insurance. Compliance with this requirement is essential to protect both the employer and employees.
When selecting a workers' compensation insurance provider, consider factors such as the provider's experience in the industry, financial stability, coverage options, claims process, customer service, and cost.
We recommend requesting multiple quotes and comparing the offerings before making a decision.
Covering your business and employees with a trusted insurance partner — like EverPeak — brings peace of mind so you can focus on your bottom line.
In New York, the penalty for businesses with five or fewer employees that fail to secure within a 12-month period is a misdemeanor punishable by a fine of between $1,000 and $5,000.
Businesses with more than five employees that fail to secure workers' compensation coverage within a 12-month period face being charged with a class E felony punishable by a fine of between $5,000 and $50,000 and is in addition to any other penalties that may apply.
Additionally, businesses risk incurring further civil and criminal penalties.
In most cases, policies bar employees in New York from suing their employers for work-related injuries or illnesses. The workers' compensation system provides an exclusive remedy, meaning that employees typically cannot file a lawsuit against their employers. Instead, they must pursue a workers' compensation claim to receive benefits for their injuries or illnesses.
Generally, a business’s workers’ compensation policy does not cover independent contractors in New York. Workers' compensation laws typically apply to employees rather than independent contractors.
However, it's important to note that the classification of a worker as an independent contractor or an employee can be complex, and misclassification can lead to legal disputes. If unsure whether an independent contractor should be treated as an employee, seek legal guidance.
The incident should be reported immediately or within a few days of the occurrence. Prompt reporting helps ensure the necessary steps are taken to initiate the workers' compensation claims process.
Employees can verify online if their employer has coverage.