Workers' Compensation Reform in New York
Issue Overview: Workers' compensation in New York has long been an impediment to economic growth. With the second-highest premiums for employers and the second-worst benefits in the nation for workers, New York is a bad deal for both job providers and their employees.
Last spring, legislation was introduced (S.5322 -- Bruno/A.6163 -- Silver) to address this problem. The plan would achieve a savings for business while increasing the benefit rate for injured workers by capping permanent partial disability payments. These payments account for only 17 percent of comp cases, but a staggering 81 percent of costs. The legislation would also close the costly second injury fund, which has been financed by additional assessments paid by employers.
NFIB Position: We supported this legislation because it would reduce premiums by 10-15 percent. Workers' compensation reform has been a top priority of our members for many years.
Issue Status: We scored a major victory in March when the Legislature unanimously passed and the governor signed into law workers' compensation reform. Projected premium savings are expected to be in excess of 20 percent on average. We'll continue to closely monitor implementation of the new law to ensure that intended savings for our members are realized, and we'll continue to advocate for additional steps to make New York's workers' compensation system more affordable.
