New York is a difficult state for employers and business owners. The state is known for challenging penalties for any disobedience and the State Insurance Fund has percentages that are disproportionate to all workers’ comp policies in the state. Multiple insurance companies dislike the regulatory environment in the state. In addition to the fact that NYS has unusual requirements such as employer-paid disability coverage attached to every worker’s comp policy, the state also has complicated coverage requirements and owner exclusion requirements for business owners.
New York employers are told to work with insurance agencies to get workers’ compensation quotes from a minimum of 3 insurance companies to help ensure they find the most competitive rates for their business.
In NYS, all profitable businesses that have full-time or part-time employees are required to buy coverage. Employers of workers at home and home health aides who work 40 hours a week in a residence are also required. Additionally, most organizations that are nonprofit are required to pay for workers’ compensation insurance.
Some types of workers, usually considered a thousand ninety-nine independent contractors, are considered to be employees per state statute, in case they are under the employer’s direct control. This applies also when they are considered independent contractors for IRS purposes.
Business owners with no employees, individuals in partnerships, LLC, and 1 or 2-person corporations, in which all the stock is held by the owners, are not really required to be able to provide themselves for workers’ compensation but can include themselves if desired.
New York also has multiple unusual options for workers’ comp besides obtaining insurance from a private insurance carrier. An employer may purchase workers’ comp through the State Insurance Fund. An employer also can become self-insured or become a member of a group self-insurer authorized by the Board.
A business established as either a sole-proprietorship or partnership is excluded from coverage unless they choose to be included. LLC Members are also ruled out for workers comp unless they choose to be included. Corporate officers, however, are considered employees and must be included except if there are 1 or two owners who hold all of the company’s stock.
In New York, owners who want to depart from the default owner exemption rules must be listed on the signed Acord 130 application sent to the insurance company so it can be filed. They must also complete the C-105.32 Notice of Election and send it to the carrier.
Penalties relating to workers’ compensation are very strict In New York state, and failure to carry coverage is a misdemeanor. In case you have five or fewer employees it is punishable by a fine between $1,000 and $5,000. In addition, If you have more than 5 employees, it becomes a felony which is punishable by a fine between $5,000 and $50,000. A stop-work order may also be issued, plus the extra costs incurred for paying the compensation and medical expenses due to the injured employee, and for defending a civil suit filed by the injured worker which is allowed if there is no insurance. Speaking with a local worker’s comp attorney is the best course of action for navigating the legal complexities surrounding workers comp insurance in NYC.
Katz & Cruz is the leading worker’s comp law firm in the Bronx, contact us for a free consultation:
Katz & Cruz Bronx Workers Compensation Firm 1963 Grand Concourse 1st Fl, Bronx, NY 10453 (718) 269-3881 https://bronxworkerscomplaw.com/