New York State Workers’ - wcb.ny.gov

1 Employers Handbook to Workers Compensation in New york State December, 2011 10 New york State Workers Compensation Board Employers Handbook A Guide to the Workers Compensation and the Disability Benefits Systems for the New york State Business Owner Employers Handbook to Workers Compensation in New york State December, 2011 2 0 BTable of Contents 0 BTable of Contents .. 2 Introduction .. 8 Message from Advocate for Business Neil Gilberg .. 9 4 BChapter One .. 10 17 BHow the Workers Compensation System Began .. 10 50 BThe Triangle Shirtwaist Factory Fire .. 10 51 BWorkers Compensation - The Historic Agreement .. 10 5 BChapter 11 18 BThe Players in the System .. 11 52 BWorkers Compensation Board.

2 11 53 BNew york State Department of Financial Services (Formerly the Insurance Department) . 12 54 BNew york Compensation Insurance Rating Board .. 12 55 BInsurance Carriers .. 13 188 BUPrivate Insurance Carriers .. 13 189 BUState Insurance Fund .. 13 56 BSelf-Insurers .. 13 190 BUIndividual Self-Insurance .. 13 191 BUGroup Self-Insurance .. 14 192 BULocal Government Self-Insurance .. 14 57 BNew york State Department of Labor .. 15 6 BChapter 16 19 BWho is Covered by the Workers Compensation Law? .. 16 20 BWho is Not Covered by the Workers Compensation Law?.. 17 21 BWho Is An Employee Under the Workers' Compensation Law? .. 18 58 BEmployees in For-profit Businesses .. 18 59 BEmployees in Nonprofit Organizations.

3 19 22 BIdentifying an Independent Contractor .. 19 60B2010 Construction Industry Fair Play Act .. 19 193 BUOverview .. 19 194 BUApplication .. 20 195 BUPenalties .. 21 61 BIdentifying Independent Contractors in Non Construction Industries .. 21 23 BExamples Where Workers Compensation Insurance Coverage is Generally Required .. 23 24 BExamples Where Workers Compensation Insurance Coverage is Generally Not Required Because the worker is Not an Employee Under the Law .. 25 25 BAdditional New york State Workers Compensation Coverage Situations .. 26 62 BAthletic Leagues/Teams/Businesses .. 26 196 BUFor-profit athletic leagues/ 26 197 BUNonprofit athletic leagues/ 26 63 BBlack Car Operators .. 26 64 BBorrowed Employees.

4 27 65 BCorporate Officer Coverage Requirements .. 27 Employers Handbook to Workers Compensation in New york State December, 2011 3 198 BUFor-profit Corporate Officers with Employees: Coverage Requirements for Penalty Purposes .. 27 199 BUFor-profit Corporate Officers with No Employees Coverage Requirements for Penalty Purposes .. 28 200 BUFor-profit Corporate Officers Coverage Requirements for Subcontractors .. 28 201 BUNonprofit Executive Officer Coverage Requirements .. 28 66 BDomestic Workers Hired by Individuals .. 29 67 BDomestic Workers Provided by Agencies or Government Programs .. 29 68 BFamily Members .. 30 69 BFarms .. 30 70 BForeign Government Employees .. 30 71 BHomeowners Workers Compensation Insurance Rider.

5 31 72 BIndependent Contractors and Subcontractors .. 32 73 BInsurance Agents -- Certain Licensed Insurance Agents Are Independent Contractors .. 32 74 BJockey Fund .. 33 75 BLeased Employees: Professional Employer Organization .. 33 202 BUWorkers Compensation Coverage Requirements for Clients of Leasing Firms .. 33 203 BUWorkers Compensation Coverage Requirements for the Leasing Firm .. 34 76 BLLCs & LLPs .. 34 77 BMedia Sales Representatives .. 34 78 BModels .. 35 79 BNative American Enterprises .. 35 80 BNonprofit Organizations .. 36 204 BUNonprofit Executive Officer Exclusions .. 37 81 BOther states Government Employees .. 37 82 BOut-of- State Employers with Employees UJUST LIVINGU in New york State .

6 37 83 BOut-of- State Employers with Employees UWORKINGU in New york State .. 38 84 BPartnerships .. 39 85 BPayroll Companies .. 40 86 BPerforming Artists .. 40 87 BReal Estate Brokers .. 40 88 BReligious Organizations .. 41 89 BSole Proprietorships .. 41 90 BSpouses .. 42 91 BStudent Interns .. 42 92 BTaxi Cabs - Most Taxi Cab Operators Are Considered Employees .. 42 93 BTemporary Service Agencies .. 43 94 BUnions .. 43 95 BVolunteers .. 43 96 BWrap-Up Workers Compensation Insurance Policies for Construction Projects .. 44 26 BBusiness Permits/Licenses/Contracts and the Workers Compensation 45 97 BWCL 57 Restriction on Issue of Permits and the Entering of Contracts Unless Compensation Is Secured.

7 45 98 BOut-of- State Companies Working in New york State .. 46 205 BUWorkers Compensation Insurance Requirements .. 46 Employers Handbook to Workers Compensation in New york State December, 2011 4 206 BUWorkers Compensation Restriction on Issuance of Government Issued Permits, Licenses and Contracts .. 46 207 BUDisability Insurance Requirements .. 47 208 BUDisability Benefits Restriction on Issuance of Government Issued Permits, Licenses and Contracts .. 47 99 BDebarment Lists .. 48 TFailure to Maintain Accurate Payroll RecordsT .. 48 100 BMisrepresentation .. 48 101 BStop Work Orders .. 49 7 BChapter Four .. 50 27 BEmployers Responsibilities .. 50 28 BEmployers Rights .. 52 8 BChapter Five .. 53 29 BComplying with New york s Workers Compensation Law.

8 53 102 BAre Any For-Profit Businesses Exempt? .. 53 103 BWhat Does Workers Compensation Insurance Buy? .. 53 30 BObtaining Workers Compensation Insurance Coverage .. 54 104 BInsurance Carriers .. 54 209 BUPrivate Insurance .. 54 TUState Insurance Fund (SIF)UT .. 55 210 BUSafety Group Plans .. 55 105 BSelf-Insurers .. 55 211 BUIndividual Self-Insurance .. 55 212 BUGroup Self-Insurance .. 56 213 BULocal Government Self-Insurance .. 56 106 BGetting the Right Coverage .. 56 107 BPosting of Notice of Workers Compensation Insurance Coverage .. 57 31 BPenalties and Liabilities for Not Carrying Workers Compensation Coverage .. 58 108 BAscertaining Violations of the Law .. 58 109 BPersonal Accountability .. 58 110 BLiability for Claims Incurred by an Uninsured Employer.

9 58 111 BPenalties for Noncompliance .. 58 214 BUAdditional Liability for Uninsured Employers .. 60 112 BDebarment Lists .. 60 TFailure to Maintain Accurate Payroll RecordsT .. 61 113 BMisrepresentation .. 61 114 BStop Work Orders .. 61 Coverage Search Application .. 62 32 BThe Workers Compensation Noncompliance Process .. 62 115 BImportant Note for Employers Regarding FEINs .. 63 9 BChapter 64 33 BUnderstanding Insurance .. 64 116 BRates .. 64 117 BLost Costs .. 64 118 BExperience Modification Factor .. 65 119 BAssessments .. 66 Employers Handbook to Workers Compensation in New york State December, 2011 5 120 BTerrorism .. 67 121 BPayroll .. 67 122 BPayrolls of Executive Officers/Sole Proprietors/Partners/Members.

10 68 EXECUTIVE OFFICERS .. 68 SOLE PROPRIETORS AND PARTNERS/MEMBERS .. 70 123 BDeductibles .. 71 215 BUDeductibles Under the NYS Workers Compensation Law .. 71 TUDeductibles Under the NYS Insurance Law .. 72 124 BMisrepresentation .. 72 125 BNew york Construction Employment Payroll Limitation .. 73 126 BNew york State Loss Prevention Programs Surcharge and Credits .. 73 216 BUCompulsory Workplace Safety and Loss Consultation Program .. 73 217 BUWorkplace Safety and Loss Prevention Incentive Program .. 73 127 BAudit .. 74 128 BPayroll Audits .. 74 218 BUAuditing of Payroll Independent Contractors .. 74 219 BUClassifying Independent Contractors and Employees .. 75 220 BUAuditing of Payroll Remuneration.