New York State workers’ compensation is a mandatory insurance system for employers with one or more employees and protects employers in the event of on-the-job injury or illness. In the event of a workplace incident, employees will be covered for any costs relating to workplace injuries and illnesses, and employers are protected from potential lawsuits related to workplace incidents.
To maintain compliance with New York workers’ compensation laws, generally, all businesses must provide employees with workers’ compensation coverage, regardless of whether he or she are full-time, part-time, or seasonal employees.
New York State Workers’ Compensation Law was first enacted in 1914 as a New York Labor Law and operates on the premise of a tradeoff in which employers assume all liability for injuries that occur during the course of employment, regardless of fault. In exchange, workers receive limited wage replacement benefits and are entitled to have necessary medical costs paid. Further, employees are prohibited from filing a lawsuit against the employer.
New York State requires all employers to provide workers’ compensation insurance policies to workers through a private insurance carrier or a State Insurance Fund. Otherwise, businesses must self-insure.
The New York State Insurance Fund (NYSIF) is a not-for-profit, public insurance carrier for the State of New York, with the mission to guarantee the availability of paid family leave, workers’ compensation, and disability insurance at the lowest possible cost for New York employers. The NYSIF serves as a guaranteed source of coverage for employers struggling to find coverage elsewhere due to the business being too high a risk for private insurance coverage.
Employers seeking coverage can purchase a policy through the NYSIF regardless of the type of business, safety record, or size. However, employers can be denied coverage if the business owes the NYSIF from a previous bill or account.
Employers of for-profit businesses and non-profit entities that compensate individuals for services must provide workers’ compensation coverage for all employees, including part-time, full-time, temporary, and seasonal workers, with a few exceptions.
Employees falling into the following categories are not covered by New York workers’ compensation:
The City of New York self-insures its workers’ compensation requirements for all covered city workers. All city employees are covered by workers’ compensation insurance except for the following:
If an employee is injured at work, he or she should submit a written notice within 30 days of the injury to the employer. If the employee fails to notify their employer within 30 days after the injury, he or she may lose workers’ compensation benefits.
Injured workers must then file an Employee Claim (Form C-3) to the Workers’ Compensation Board as soon as possible. Employees filing claims are required to notify the board of injury or illness within two years of the incident occurring.
Additionally, employees filing on account of a repeat injury or illness must file a Limited Release of Health Information (Form C-3.3).
If an injury or illness occurred on the job and required medical treatment beyond first aid, or if an employee has lost at least one day of work other than the date the injury or illness occurred, the employer is required to notify the workers’ compensation insurance carrier within 10 days of the date of injury.
Within 14 days of the employer notifying the insurance carrier of the injury or illness, the insurer provides employees with a written Statement of Rights (Form C-430S), as well as any other requirements for using pharmacy or diagnostic testing networks.
Within 18 days of the notification of injury or illness to the insurance provider, the insurer will then begin the payment of benefits if lost time exceeds seven days.
Injured or ill workers approved for payments will receive continued payments for benefits every two weeks during the disability period.
In the event of a work-related injury or illness, employees may file a workers’ compensation claim and receive the following benefits:
The amount of weekly benefits an injured worker is eligible to receive is approximately two-thirds of the employee’s average weekly wage, up to a weekly maximum of $1,222.42 effective July 1st, 2025. The maximum weekly benefit updates on July 1st of each year.
Additionally, the rate at which benefits are paid to an injured worker is based upon the level (or “degree”) of disability on the medical reports.
Wage loss benefits will be payable on the eighth day after injury. Once the injured employee has missed 14 days of work, the employee may receive retroactive payments for the first seven days.
If an injured worker has a claim disputed by the insurer, he or she is eligible to receive disability benefits until the case is heard by a judge or the judge has ruled in the worker's favor. If the case has been won in favor of the worker, the disability benefits would be deducted from the worker's lost wages reward.
Employers must post a Notice of Compliance - Workers’ Compensation Law (Form C-105) in a place of business at all times. These forms can be obtained from the insurance carrier or a licensed NYS insurance agent.
A New York State labor law poster subscription service is a great way to ensure an organization has the proper posting requirements.
Employers in New York State that are required to provide workers’ comp coverage will be subject to penalties if compliance requirements are not met.
Penalties include:
Employers in violation of New York workers’ comp laws may be faced with civil and criminal penalties. Fines may be assessed of at least $1,000, all the way up to $50,000, depending on the offense.
In New York State, workers’ compensation premiums are based on the payroll estimate an employer provides at the beginning of the policy year.
Workers’ compensation premiums can be affected if an employer misclassifies an employee. The New York State Construction Industry and the Commercial Goods Transportation Industry Fair Play Acts established legal guidelines for determining the status of workers as employees or independent contractors.
To ensure that the auditing process is as accurate as possible, it is important to have the proper records on hand.
When preparing for a workers’ compensation audit in New York State, it is important to have the following documentation ready:
Running a business in New York State is not an easy job. Employers must ensure compliance all around and protect both the employees and the business from potential compliance risks related to workers’ compensation.
Get started by consulting a New York HR service provider and get the workers’ compensation insurance that suits your needs and safeguards your business.