What to know about workers' compensation in New York

Workers’ compensation, which can provide cash and medical care to employees injured on the job, and benefits to survivors in cases of a work-related death, began with a federal program in 1908. It gave benefits to civilian workers whose jobs were hazardous and became the first kind of social insurance established across the United States.

By 1916, the rest of the federal workforce was covered. States meanwhile were enacting their workers’ compensation laws. All but six states and the District of Columbia had them by 1921.

Today, programs exist in all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands.

The details of each program vary by state. Four states—Ohio, North Dakota, Washington and Wyoming—require insurance be obtained through a state-administered fund rather than through a private insurer. Another option is to self-insure for approved businesses. Most states require some businesses to provide coverage and can levy substantial fines for failing to comply. South Dakota and Texas leave the choice to businesses, although Texas makes an exception for construction companies with a government contract.

Simply Business reviewed rules, statistics, and other information about workers’ compensation insurance—including the comprehensive breakdown by the National Federation of Independent Business—to offer a breakdown of what workers’ comp requirements in each state. Rules are subject to updates periodically, so it’s important to stay up-to-date based on your trade and location.

Workers' Compensation in New York

New York says that virtually every employer must provide workers’ compensation coverage to its employees, which can be through the state-administered fund. Some exceptions include occasional chores or yard work at a one-family house occupied by the owner or domestic work of less than 40 hours a week. The domestic workers cannot live in the home for the exception to apply. Employers that fail to comply face penalties as high as $2,000 for every 10-day period without coverage. That penalty could be more than $12,000 by the time an employer receives the first notice.

Workers’ Compensation Benefits, Costs, and Coverage, an October 2021 report from the National Academy of Social Insurance, found that total benefits paid to employees rose by 0.4% nationwide from 2015 to 2019. Cash benefits rose by 2%, but medical benefits fell by 1.1%. Standardized benefits fell— cash by 14% and medical benefits by 16.7%—over the same period.

Keep reading to see what workers' compensation looks like for other states in your area.

Workers' Compensation in Connecticut

Connecticut exempts businesses that can self-insure from workers’ compensation coverage. All others that have at least one full- or part-time or contract employee must provide it. Exceptions include corporate officers who can opt out, sole proprietors, partners, and employees who work in a home for 26 hours or less a week. A business without proper coverage can be fined $300 a day for each worker.

Workers' Compensation in Massachusetts

In Massachusetts, all businesses must have workers’ compensation insurance. Domestic employees must work 16 hours or more each week to be covered under a worker’s compensation policy. Some taxi drivers, workers involved in interstate or international commerce, those selling real estate or goods who are paid by commission, and others are exempt. Sole proprietors, partners and those working at limited liability companies are not required to carry coverage for themselves, though they may. Employers without insurance face stop work orders and minimum fines of $100 a day.