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Effects of the New York Workers’ Compensation Reform

Posted on Jan 09, 2009

The New York State Workers’ Compensation Board recently released a report showing that benefits for injured workers increased for the first time in more than ten years. This was due to a reform law passed in 2007 which allowed for steady increases in the wage replacement benefit until 2010.

For the previous 15 years, the wage replacement benefit has been fixed at $400 a week, and the reform immediately increased the weekly benefit to $500. If the weekly wage for New York stays at $1,141, the wage replacement benefit could rise to as much as $760 by 2010.

Not only did the weekly benefit increase, but efforts to stabilize New York’s self-insurance industry by improving transparency among self-insured trusts. The Workers’ Compensation Board took over several of the New York trusts due to insolvency over the past year.