Which New York employers need workers’ comp coverage?

Many New York employers are required by state law to have workers’ compensation insurance for their employees. Steep penalties exist for employers who do not have required workers’ compensation coverage. This blog post will explore the topic of which New York employers must have this kind of insurance policy. A New York workers’ compensation attorney should be consulted for further information.

Workers in all for-profit businesses – and most workers paid by not-for-profit organizations – must be covered by workers’ compensation insurance. Also, farm workers must be covered if their employer paid $1,200 or more for farm labor in the prior calendar year.

Furthermore, many domestic workers must be covered by workers’ compensation insurance. While many states allow employers not to insure their domestic workers, the Empire State requires many of these workers to be covered. If a domestic worker, sitter, companion or live-in maid is employed for 40 weeks in a residence, they must be covered by workers’ compensation insurance.

Some businesses do not need to have workers’ compensation coverage. These include sole proprietorships and partnerships if they do not have any employees. These also include one- or two-person corporations where the owners own all stock and hold all corporate offices, but only if the corporation has no employees.

As mentioned above, the penalties can be severe for employers determined not to have proper workers’ compensation coverage for their employees. The penalties can include civil fines and criminal liability as well. However, many employers have had positive outcomes when they mount a vigorous workers’ compensation small business defense soon after allegations surface.