In the News | New York Workers' Compensation Rule Raises Questions

New York Workers' Compensation Rule Raises Questions

The Workers' Compensation regulatory board in New York implemented a new rule effective September 9, 2007 that requires out-of-state employers with employees working in New York to carry a "full, statutory New York State Workers' Compensation insurance policy." The rule says an employer has full, statutory Workers' Compensation (WC) coverage when the WC information page lists New York under item 3A. Taken to the extreme, this means an out-of-state employer must provide evidence that New York Workers' Compensation benefits are available to an employee who attends a conference or visits a customer in New York. As a practical matter, enforcement will be difficult unless an employee suffers a compensable injury and makes a claim for New York benefits. In that case, an employer could be liable for the uninsured benefits, as well as subject to civil and criminal penalties. Agents, carriers, the Big "I" association in New York and others in the industry are working with regulators to address this issue and craft a solution for employers who send employees to New York, as well as avoid possible retaliatory action against New York employers by other state regulators. Although NY has recognized the unexpected ramifications that resulted from this change and clarification of the new legislation is in progress, their enforcement continues. IMA is actively monitoring the situation and will keep you advised as developments progress. For further information, please refer to the NY Workers' Compensation Board or talk with your IMA representative.