Does New York require workers’ compensation insurance?
Yes. New York requires workers' compensation from the first employee: the Workers' Compensation Board says virtually all employers must cover their employees under WCL sections 2 and 3, and part-time, seasonal, day-labor, unpaid, and family workers all count. A sole proprietor, partnership, or LLC with no employees does not need a policy, and neither does a one- or two-officer corporation whose officers own all the stock and have no other workers.
Updated . Written by Andre Beukers, principal at Redoubt, a commercial insurance agency in Salt Lake City, not a government office.
How many employees before New York requires workers' comp?
New York has no minimum head count. The Workers' Compensation Board treats almost anyone working under a for-profit business's direction and control as its employee, whether full-time, part-time, temporary, seasonal, day labor, leased, borrowed, or unpaid, and family members count. Household employers owe coverage for a domestic worker employed 40 or more hours a week.
The same employers also owe New York disability benefits and Paid Family Leave coverage, which is a separate policy or endorsement. In construction, the Construction Industry Fair Play Act presumes a worker is the contractor's employee unless the contractor can prove the statute's independent contractor test.
Source: NY Workers' Compensation Board, Coverage Requirements, checked .
Which owners, officers, and family members are exempt in New York?
A sole proprietor with no employees, and a partnership, LLC, or LLP with no employees, does not need coverage; owners, members, and partners can buy it for themselves voluntarily. A corporation is exempt only when it has one or two officers who together own all the stock, each holding an office and at least one share, and nobody else works for it: no employees, day labor, family volunteers, or subcontractors. A spouse who helps in the business, paid or not, counts as an employee.
A corporation with more than two officers or shareholders, or whose officers do not own all the shares, needs a policy. Whether an officer of a corporation that has employees can be left off the policy depends on the carrier and the Board's current rules, so confirm with the carrier before assuming it.
Source: NY Workers' Compensation Board, Coverage Requirements, checked .
What happens to a New York employer with no workers' comp?
The Board can assess up to $2,000 for every 10-day period without coverage, or up to twice the cost of compensation for its payroll over that period (WCL 52(5)); by the first penalty notice the bill can already top $12,000. Criminally, going uninsured with five or fewer employees in a 12-month period is a misdemeanor with a $1,000 to $5,000 fine, and with more than five it is a class E felony with a $5,000 to $50,000 fine (WCL 52(1)(a)).
A repeat conviction within five years is a class D felony. For a corporation, the president, secretary, and treasurer are personally liable for the Board's penalty. An uninsured employer also pays every benefit awarded on its employees' claims and can be sued by the injured worker, and a stop-work order under WCL 141-a halts all business activity until coverage is in place.
Source: NY Workers' Compensation Board, Violations of WCL, checked .
Who enforces workers' comp in New York?
The New York State Workers' Compensation Board administers the Workers' Compensation Law. It tracks the coverage status of every covered employer, mails inquiry and penalty notices when it has no policy on file, and issues stop-work orders. Carriers report each policy to the Board under the employer's FEIN, so a wrong FEIN on the policy can look like a lapse. The Department of Financial Services regulates the carriers, not the employers.
Source: NY Workers' Compensation Board, Players in the System, checked .
Where do New York employers buy coverage?
New York has a competitive state fund. Employers can buy from any of the 200-plus private carriers the Department of Financial Services authorizes, from the New York State Insurance Fund (NYSIF), or qualify to self-insure. NYSIF competes with private carriers and is the guaranteed source of coverage: it has to write any employer that applies, regardless of industry, safety record, or size, unless the employer owes NYSIF money from a past account.
Source: NYSIF, About NYSIF, checked .
Who sets the class codes and rates in New York?
New York does not use NCCI. The New York Compensation Insurance Rating Board (NYCIRB), a nonprofit association of carriers that includes the State Insurance Fund, is the licensed rating organization: it sets the classifications and underwriting rules, recommends rate changes to the Department of Financial Services, and calculates experience modification factors for employers paying more than $5,000 in premium.
Source: NY Workers' Compensation Board, Players in the System, checked .
Is there an exemption or waiver form in New York?
Partly. A business with no employees can get a Certificate of Attestation of Exemption (CE-200) through New York Business Express, but only to show a state or local government office that it needs no coverage for a specific permit, license, or contract; building-permit certificates are job-specific. The Board says a CE-200 cannot be shown to another business or its carrier, so it does not answer a general contractor's request for proof of coverage.
A subcontractor with no employees who is asked for proof by a general contractor usually needs a policy. The Board notes that carriers routinely charge a general contractor premium for any subcontractor without its own New York policy.
Source: NY Workers' Compensation Board, CE-200, checked .
Sorting out New York workers' comp for your business
Tell Redoubt what the business does, who works in it, and what the New York requirement in front of you says. We will say whether a policy, a waiver, or an exclusion fits.
This is general insurance information, not legal advice or a coverage determination. Statutes, agency instructions, policy forms, and the facts of the business control.
Workers’ comp requirements in every state
Each state page gives the employee threshold, the owner and officer exemptions, the penalty for going without, the rating bureau, the market, the enforcing agency, and the exemption filing, each with its statute or agency source.
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
The hub, and the New York pages that go deeper
New York workers’ comp FAQ
Do I need workers' comp in New York for one part-time employee?+
Yes. The Workers' Compensation Board counts part-time, temporary, seasonal, day-labor, and unpaid workers, including family members, as employees of a for-profit business. Coverage has to be in place while that person works, with no lapse even when you switch carriers.
Can I give a general contractor my CE-200 instead of a certificate of insurance?+
No. The Board limits the CE-200 to showing a government office that you need no coverage for a specific permit, license, or contract. It cannot be used with another business or that business's carrier, and the contractor's carrier may charge them for your payroll if you have no New York policy.
Do I have to buy from the State Insurance Fund?+
No. New York is not a monopolistic state. More than 200 private carriers are authorized to write workers' compensation there, and NYSIF competes with them. NYSIF must accept any employer that applies, which makes it the backstop when private carriers decline, unless the employer owes NYSIF from an earlier policy.
Does a New York workers' comp policy cover disability and Paid Family Leave?+
No. The Board requires employers to carry disability benefits and Paid Family Leave coverage for their employees as well, and each has its own notice of compliance to post at the workplace. Ask about all three when you quote.