Workers' Compensation in New York: What You Need to Know to be Prepared
Being proactive in business can be a crucial part of long-term success. For employers in New York State, finding quality workers' comp insurance at an affordable price is vital to keeping your employees safe and your business protected.
The very name New York elicits an image of significant economic activity. The region is so much more than just the bustling streets, prominent skyscrapers, or dazzling theatre shows of New York City.
Much of New York State's attraction lies in its outstanding economic opportunities. According to recent data, more than 2.6 million businesses operate in the Empire State – employing more than 11 million people. If New York State were its own country, its gross domestic product (GDP) would rank just outside of the top 10 in the world.
With such a large population and so many types of jobs and services offered, there are also plenty of chances for accidents to happen. That's why the workers' compensation laws in New York State are one of the country's most proactive – with specific employer requirements and harsh penalties for violations.
In this article, we'll explore the nuances of the New York State Workers' Comp Law, including who needs the insurance, what benefits are generally covered, and provide a list of steps on how you can best prepare your business to stay compliant.
Who needs workers' comp in New York?
"In short, the answer is just about everybody," says Angelo Boff, licensed agent at Automatic Data Processing Insurance Agency, Inc. (ADPIA®) and vice president of sales at ADP®. The State of New York requires all for-profit businesses and most non-profit organizations to carry some version of workers' comp insurance from their very first employee. According to the New York State Workers' Compensation Board, this includes both full- and part-time employees, as well as temporary and seasonal workers.
Within the workplace, employers are also required to post a Workers' Comp Notice of Compliance in a conspicuous area where all employees can see it. Failure to do so can result in a fine of up to $250 per violation.
Some exceptions apply where workers' comp insurance is not mandatory. For example, a business's self-employed individuals or sole proprietors are not required to purchase insurance for themselves. Furthermore, certain members of non-profit organizations (i.e., members of religious orders or volunteer workers) are exempt from the state's requirement.
Independent contractors could also be allowed to waive the workers' comp requirement; however, they must meet a list of specific criteria to be considered fully exempt.
What does workers' comp insurance cover?
Through workers' comp insurance, business owners can help their employees receive benefits that will help them recover from work-related illnesses or injuries sustained on the job.
"In business, you always want to get what you pay for," adds Boff. "With workers' comp insurance, you want to ensure that your plan covers your employees thoroughly."
No matter where New York employers purchase their insurance coverage, they can safely expect that most plans will cover basic medical expenses, such as an emergency room visit. Ongoing medical treatments (i.e., physical therapy appointments) and lost wages are typically covered. Moreover, workers' comp insurance should cover employees who require temporary or permanent disability benefits, as well as funeral costs should an employee pass away due to a workplace accident. Businesses should always consult their policy for their specific coverage details.
Please visit the New York State Workers' Compensation Board website for more information.
4 tips to help keep your business compliant in New York state
"There's no one-size-fits-all approach for workers' comp insurance," says Boff. "You need to do your homework and understand your business, its employees, and how New York State law and regulations directly affect your company to get the best result."
With that in mind, here are a few helpful tips to consider when building a solid workers' comp strategy:
1. Understand how the law applies to you.
As a business owner, you need to familiarize yourself with how New York State workers' comp laws and regulations regarding insurance will affect you. Simple rule of thumb: Unless you are the only employee in your company, you'll probably need workers' comp insurance. Additionally, you'll have to create a system within your organization to stay up-to-date with new policies or regulations.
2. Evaluate your risks and coverage needs.
Every business is different – making your risks diverse as well. For instance, you'll have a higher workers' comp risk in the construction industry than if you own a small flower shop.
A solid business approach would be identifying potential workplace hazards and assessing the likelihood of accidents or injuries occurring to your workers. While you can always implement safety measures to mitigate these risks, it's crucial that any workers' comp plans cover your actual risks.
3. Consider all your options to get the best results.
New York State employers have options as to where they can purchase quality workers' comp insurance. One choice could be to partner with the New York State Insurance Fund (NYSIF). The NYSIF is a non-profit state agency specializing in workers' comp coverage offerings.
You can also self-fund your workers' comp insurance if you meet specific criteria outlined by the NYS Workers' Compensation Board.
If you want to work with an authorized, private insurance carrier, it's best to call on a knowledgeable licensed insurance agent, like ADP® affiliate, Automatic Data Processing Insurance Agency, Inc. (ADPIA®). Discussing your business needs with a licensed broker, agent, and other professionals will help you stay compliant with laws and regulations and get the most out of your insurance plans. For example, ADP's Pay-by-Pay® Premium Payment Program could be a viable option to manage your workers' comp needs.
4. Continue to prioritize safety in the workplace.
Yes, accidents will happen. However, if you invest in workplace safety initiatives, provide proper employee training, and maintain a safe work environment, you can limit the prevalence of accidents and serious injuries.
"At the end of the day, workers' compensation is no different than any other part of your business operations," concludes Boff. "If you invest in the right coverage, you'll be thankful when the inevitable workplace accident occurs."
To learn more about protecting your employees and your business in New York state, check out ADP® affiliate, Automatic Data Processing Insurance Agency, Inc. (ADPIA®), for the latest in workers' compensation insurance.
Automatic Data Processing Insurance Agency, Inc. (ADPIA) is an affiliate of ADP, Inc. All insurance products will be offered and sold only through ADPIA, its licensed agents, or its licensed insurance partners, One ADP Blvd. Roseland, NJ 07068. CA license #0D04044. Licensed in 50 states. Certain services may not be available in all states with all carriers. Some carriers may charge an additional fee for services. This information is not intended as tax or legal advice. If you have any questions, contact a tax or legal professional. ADP, the ADP logo, and ADPIA are registered trademarks of ADP, Inc. Copyright © 2024 ADP, Inc. All rights reserved.
