New York Eases Some Workers’ Compensation Policy Rules

New York has eased some workers’ compensation insurance requirements for out-of-state businesses that do only occasional, non-construction work in the Empire State.

The rule change comes after years of lobbying by agents and their trade groups in the state.

The change, announced in a new bulletin by the New York Workers’ Compensation Board, adds some coverage exemptions for section 3.A. of a workers’ compensation policy.

There are now five new exemptions that will allow businesses to avoid enforcement actions by state workers’ comp regulators.

Under the change, business policies can list New York in section 3.C. if a business

• Is not required to pay unemployment taxes
• Has no permanent location in the state
• Is not working on any state or municipal contract, permit or licenses
• Is not working as a contractor or subcontractor on a construction project
• Had no employees based in the state for certain periods of time

The change is a welcome one, said Donna Chiapperino, president of the Professional Insurance Agents of New York.

“While still more restrictive than many surrounding states, this change in enforcement standards is a welcome improvement for employers conducting incidental and temporary work in New York,” she said.

Enforcement of out-of-state workers’ compensation policies has become a controversial issue in the last few years. Recently the state of Massachusetts also eased rules for some workers’ comp policies for businesses that do occasional work in the Bay State.