Tips for Navigating New York’s Comp System

Worker Compensation
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When a worker sustains an injury while on the job, they are typically required to submit a claim to their employer’s Workers’ Compensation insurance in order to recoup any financial losses incurred as a result of the injury, including lost wages and medical bills. Curious about how it operates and who among New York’s business community is mandated to have it.

What’s the Deal with New York’s Workers’ Comp System?

When an employee is injured in Rochester or becomes ill on the job, they are entitled to benefits under a no-fault system known as workers’ compensation. Businesses in New York, both for-profit and non-profit, are required by law to provide workers with health insurance.

Every proprietor of a company operating in the state of New York is obligated to purchase some form of insurance coverage, whether it be through a private insurance company, the New York State Insurance Fund, or themselves.

When Must Workers’ Comp Insurance Be Obtained?

In New York, workers’ compensation insurance is required by law for all for-profit businesses and a significant portion of non-profit organizations. All employees, whether they be full-time, part-time, or seasonal, as well as those who are, are covered by this rule.

  • Casual or part-time employees
  • Individuals within the family who are employed by the business
  • Personnel on temporary loan
  • Workers or interns who are not compensated

Is Workers’ Compensation Required for Every Employer in the State of New York, or Are There Exceptions to This Requirement?

There are only a handful of exceptions to New York’s requirements for for-profit enterprises:

  • Individual entrepreneurs
  • Forming a partnership in accordance with New York law
  • A company that consists of just one or two people, who hold all of the company’s offices and control all of the stock.
  • No workers of any kind, be they, unpaid volunteers, members of the family, independent contractors, or seasonal workers, are allowed.

In addition, the following types of non-profits are exempt from certain requirements:

  • people in religious orders or the clergy carrying out their responsibilities.
  • Participants in a non-professional, governed athletic league.
  • Volunteers in the field of education work for a good cause.
  • A recipient of aid from a religious or charitable organization who is expected to perform some sort of service in exchange.
  • Employees of a nonprofit who do not perform manual labor.
  • Executives in the non-profit sector receive salaries from the organization.