In New York, workers’ compensation isn’t optional—it’s a legal requirement. Whether you own a roofing business in Queens or a bakery in Buffalo, New York Workers’ Compensation Insurance is mandatory for nearly all employers. Failing to comply can lead to steep fines, stop-work orders, or lawsuits.
This guide outlines who needs coverage, key benefits, common risks, claim procedures, and compliance requirements under NY Workers’ Comp Requirements.
WHO NEEDS THIS COVERAGE
If you have even one employee—full-time, part-time, or seasonal—you’re required to carry workers’ comp in New York.
Who must comply:
- Full-time and part-time staff
- Seasonal or temporary workers
- Paid family members
- Nonprofit employees
Who may be exempt:
- Sole proprietors without employees
- Partners in partnerships
- LLC members with no employees
- Certain clergy and members of religious orders
Even if exempt, you can elect voluntary coverage for protection while working.
Industry-Specific Workers' Comp NY Mandates
Construction: Under the Construction Industry Fair Play Act, workers are presumed employees unless proven otherwise. Misclassification increases penalties and premium risk.
Agriculture: New York requires workers’ compensation coverage for all farm laborers, regardless of the farmer’s annual payroll. This mandate took effect on January 1, 2020, with the implementation of the Farm Laborers Fair Labor Practices Act.
Healthcare: All staff, including temps and part-time nurses, must be insured. Noncompliance can result in license violations and fines.
KEY BENEFITS & COVERAGE DETAILS
New York’s workers’ comp system operates on a no-fault basis. Injured workers receive benefits even if they contributed to the incident, and employers are generally protected from personal injury lawsuits.
Core protections include:
- Medical Benefits: Covers emergency treatment, surgery, rehab, prescriptions, and therapy
- Wage Replacement: Typically pays two-thirds of the employee’s average weekly wage, up to the state maximum
- Mental Health Coverage: Mental Health Coverage: Effective January 1, 2025, Post-Traumatic Stress Disorder (PTSD), Acute Stress Disorder, and Major Depressive Disorder resulting from extraordinary work-related stress attributable to distinct work-related events are now compensable for all covered employees under New York Workers’ Compensation Law § 10(3)(c).
- Vocational Rehabilitation: Supports retraining and placement if the injured employee cannot return to their prior job
By complying with NY Workers’ Comp Compliance laws, you avoid penalties and ensure injured workers are cared for promptly and professionally.
Want a simple breakdown of how workers’ comp works? Read our guide: Workers’ Comp Insurance Basics – What You Should Know.
COMMON CLAIMS, RISKS & REAL SCENARIOS
Workers’ comp claims span nearly every industry, but the most costly and frequent come from high-risk jobs like construction, manufacturing, and agriculture.
Examples of claims in New York:
- Slips and Falls: Icy sidewalks, wet floors, and ladder mishaps frequently result in fractured bones and long recovery times
- Machinery Accidents: Manufacturing workers often suffer crush injuries or amputations from moving parts
- Overexertion Injuries: Back strains, hernias, and repetitive motion damage affect warehouse staff, nurses, and laborers
- Mental Health Claims: Stress-related conditions from hostile work environments or trauma are now compensable
- Agricultural Hazards: Tractor rollovers and livestock injuries are on the rise in upstate counties
- Urban Construction Risks: Scaffold falls and equipment-related accidents remain a leading claim type in NYC
Average claim duration in New York is 12 months, but serious cases can extend far longer and cost six figures.
COSTS, FACTORS & STATE SPECIFICS
Premiums for New York Workers’ Compensation Insurance depend on multiple factors:
- Payroll: Premiums are calculated per $100 of payroll
- Industry Classification: Riskier sectors (e.g., roofing, trucking) have higher base rates
- Claims History: More past claims = higher premiums. A clean record may earn discounts
- Coverage Limits: Higher wage replacement caps or extended benefits increase costs
- Carrier Type: Choose from private insurers or the New York State Insurance Fund (NYSIF), which often has lower underwriting restrictions
- Self-Insurance Option: Only available to financially secure businesses that meet strict requirements
Workers' Compensation Claims Process NY: Legal Requirements & Deadlines
Following the correct Workers’ Compensation Claims Process NY protects both your employee and your business after an injury. Understanding the distinct responsibilities and timelines is critical for compliance.
Steps to follow:
- Employee Notification: The injured worker must provide written notice to you (the employer) within 30 days of the accident.
- Employer Reporting: You (the employer) must report the injury to the Workers’ Compensation Board and your insurer by filing a First Report of Injury (Form C-2F) within 10 days.
- Formal Claim Filing: The injured worker generally has two years from the date of the accident to file their official claim (Form C-3) with the Board.
- Carrier Review: Your insurance company or NYSIF investigates and approves or denies the claim.
- Hearings & Appeals: If the claim is disputed, a hearing is scheduled before a state workers’ comp judge.
All businesses must also display Form C-105 or equivalent proof of coverage where employees can see it.
RECENT LEGAL UPDATES (2025)
Two recent changes affect compliance and claims eligibility in 2025:
Mental Health Law Expansion: Stress-related disorders, including PTSD, are now compensable when clearly tied to workplace events like harassment or trauma exposure.
Authorized Provider Access: Injured workers can now select from an expanded network of certified physicians, including resident and fellow physicians under supervision, and mental health professionals, due to recent reforms aimed at removing treatment barriers.
Noncompliance with these updates could trigger significant penalties, including daily fines and criminal prosecution.
BOTTOM LINE & EXPERT RECOMMENDATIONS
If you employ anyone in New York, staying compliant with NY Workers’ Comp Requirements isn’t optional—it’s a critical business responsibility.
Under Workers’ Compensation Law (WCL) § 52(5), the New York State Workers’ Compensation Board (WCB) can impose a penalty of up to $2,000 for each 10-day period if an employer fails to provide coverage. And can issue stop work orders.
Don’t wait until you’re fined—get covered now.
Call 855-718-7552 to speak with a licensed advisor about affordable options today.
