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Out-of State Businesses Get Break From NY Workers Compensation Board

Posted on Dec 09, 2010

Companies doing business in the state of New York are required to pay workers compensation insurance for their workers. Up until a recent announcement by the New York Workers Compensation Board, this requirement was true for all businesses regardless of their location. This rule has been changed slightly to offer exemptions to out-of-state businesses that fall within certain criteria.

This change is believed to be the result of years of lobbying by trade groups and agents who felt the requirements for out-of-state businesses were unfair. As stated in the Insurance Journal, "The change is a welcome one, said Donna Chiapperino, president of the Professional Insurance Agents of New York." Chiapperino states, "While still more restrictive than many surrounding states, this change in enforcement standards is a welcome improvement for employers conducting incidental and temporary work in New York."
According to the New York State Workers Compensation Board, companies that meet the following criteria will not be subject to enforcement actions by regulators.

Not required to pay unemployment
No permanent location within the state of New York
Not working on state/municipal contracts, permits or licenses
Not working as the main contractor or subcontractor of a construction project
No employees based in the state for a specified period of time

Companies doing business in New York on a temporary basis will find this change in requirements for workers compensation insurance an improvement over the original requirements. It is important to note that out-of-state companies will be responsible for providing proof that they should be exempt from workers compensation insurance due to the new conditions or face penalties from regulators.

New York Attorney