Key New York workers compensation reform proposals

Key elements of the proposed reform package as released by Gov. Spitzer’s office are as follows:

• The maximum weekly benefit for injured workers will be increased from $400 to $500 in the first year, $550 in the second year, $600 in the third year, and to two-thirds of the average weekly wage in New York in the fourth year. Once the maximum benefit reaches two-thirds of the average weekly wage, the maximum benefit will be indexed annually.
• The minimum weekly benefit will be increased from $40 to $100.
• Cost savings worth hundreds of millions of dollars will be achieved by setting maximum number of years that a small population of claimants can receive cash benefits.
• New programs will be established to get workers prompt medical treatment and to help them return to work.
• Strong anti-fraud measures will be adopted, including the ability to stop work on a job site where a company has failed to purchase insurance for its workers, higher criminal penalties for violators and debarment provisions.
• The expensive Second Injury Fund that is now financed by assessments passed through to employers will be closed. The fund was initially set up to help injured Word War II veterans, but is now instead used by some insurance carriers as a costly loophole to avoid paying claims; and
• The Compensation Insurance Rating Board, which helps determine workers’ comp costs for employers, will sunset as of Feb. 1, 2008. The Superintendent of Insurance will make a recommendation to the Legislature in September 2007 as to what, if anything, should replace it.

Topics New York Workers' Compensation Talent