Workers Left Unprotected By Change In Workers Compensation Rules

Many out-of-state businesses are breathing a sigh of relief after the NY Workers Compensation Board announced a change in rules regarding workers compensation insurance. This is due to the fact that companies meeting certain criteria will no longer be required to purchase workers compensation insurance when working in the state of New York. Obviously this represents a significant saving for the companies, but at what cost to their workers?


Workers compensation insurance provides benefits to employees who have been injured on the job. These benefits include payment of medical expenses and lost wages. Most businesses are required by law to carry workers compensation insurance to ensure employees are compensated for injuries sustained at the workplace. Workers compensation should be viewed as a win-win for all parties, however that is often not the case. As business owners look to reduce costs and cut expenses, many would welcome the opportunity to drop workers compensation insurance.

This is now a reality for out-of-state companies who are working in New York. With the new rule change, many companies can save money however in doing so their workers are without protection should an accident or injury occur.

What happens to these workers if they are injured? Who will pay for their medical expenses? How will they pay their bills when their paychecks stop? This is a scary situation for the workers of out-of-state companies. Without the protection offered by workers compensation insurance, these employees are on their own if they are hurt at work. This change in rules will certainly make the cost of doing business in New York less painful for employers while the employees take all the risk.