Businesses protest N.Y.’s ‘scaffold law’ as session nears end

June 18, 2007

With the New York Legislature set to adjourn on June 21, business associations and groups representing the state’s agriculture and construction industries again urged Gov. Eliot Spitzer and state legislators to dismantle the so-called “scaffold law.”

The scaffold law — also known as sections 240/241 of the Labor Law — imposes absolute liability on New York’s property owners and contractors in cases of worksite injuries.

“This means that, in claims stemming from worksite injuries, these owners and contractors cannot even defend themselves by introducing evidence of their own commitment to safety or of worker negligence,” said Kenneth Adams, president and chief executive officer of The Business Council.

“In this way, New York State has abandoned the common-sense fairness standard of letting people defend themselves against accusations,” Adams added. “The effects of the scaffold law are nasty: inflated business insurance costs, and higher costs of goods, services, and taxes for all New Yorkers.”

The business and farm groups want the absolute liability standard replaced by a negligence-based standard.

Such reforms, sought for years, have stalled in Albany, despite concerns over how the law hurts the state’s business climate. Lawmakers are scheduled to break for the summer in two weeks.

“Liability insurance costs more in New York State than anywhere else, which gets passed on to taxpayers to the tune of thousands of extra dollars in construction costs on homes and public projects. This law is hurting taxpayers and costing our state jobs. It needs to be changed,” argued Chris Wiest, vice president of public policy for the Rochester Business Alliance and a representative of Unshackle Upstate.

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Insurance Journal Magazine June 18, 2007
June 18, 2007
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