Every business that operates in New York is required by law to have workers’ compensation insurance. It acts both as a safety net for employees and provides protection for businesses, especially small ones. No matter the size of your business, understanding the laws, rules, and compliance mandates of New York can help you avoid expensive penalties while protecting your entire team. In this guide, we will explain how the NY workers’ comp system works, common mistakes employers and business owners make, and how the Controlio tool can streamline compliance. Let’s dive into it!
The Importance of Workers’ Comp Compliance in New York
New York is known for its strict enforcement of workers’ compensation laws (self-insurance policies are allowed). For instance, if you have even just one employee—whether a part-timer, seasonal worker, or full-time employee—you need coverage, and tools like the Controlio software can help track these hours accurately. What happens if you don’t comply?
- Hefty fines (non-compliance fines can reach up to $2,000 every ten days).
- Possible criminal charges.
- Lawsuits from injured employees (without a workers’ comp policy, an injured employee could claim medical care costs or lost wages).
Personal Encounter: A café owner friend of mine from Brooklyn believed workers’ compensation covered only larger businesses. After one of his baristas slipped while working and injured her back, he faced $15,000 in medical expenses. The moral of the story—skipping coverage is not an option!
Who Is Eligible for Workers’ Compensation Insurance in New York?
Most workers are eligible for coverage. These include:
- Full-time employees (W-2 workers).
- Part-time as well as seasonal employees.
- Domestic servants (if they log over 40 hours a week).
Independent contractors under the 1099 classification fall outside this category. However, misclassifying employees as independent contractors is a common and expensive mistake many companies make.
Main Guidelines for Employers Based in New York
- Take out insurance immediately.
- You need to have a policy in place before your first employee starts work.
- Private insurance companies, the NY State Insurance Fund, or self-insurers can be consulted (for large firms).
- Create Notices & Post Them at the Workplace
Employees must see Form C-105, “Workers’ Compensation Notice.” Provide clear instructions on how to report any injuries sustained.
- Submit Injury Reports Without Delay
Employees have up to thirty days to inform you about sustained injuries. You are obligated to notify the NY Workers’ Compensation Board within ten days once you have been alerted about multiple claims being filed by your employees.
- Update Accurate Reports Regularly
Accurate employee timesheets must be maintained alongside injury and claim documentation. Tools like the Controlio app help ensure compliance and automate record-keeping processes.
Common Mistakes to Avoid
- Misclassifying Employees
Just because you label someone an “independent contractor” doesn’t make it true. If their schedule, tools, or work methods are dictated by you, they are most likely considered an employee.
- Skipping Coverage for Small Teams
In New York, even a single part-time employee necessitates workers’ comp coverage.
- Delaying Injury Reports
Filing reports late can lead to penalties and even legal action being taken against you.
How Technology Simplifies Compliance
There’s inherent risk in managing workers’ compensation claims manually; this is where the Controlio app and other workforce management software solutions provide value by:
- Helping track full-time and part-time workers accurately.
- Providing secure storage for injury reports and compliance documents.
- Sending alert notifications for critical deadlines (like windows for reporting injuries).
Pro Tip: I worked with a construction company that automated their tracking systems and saw a 60 percent reduction in disputed claims!
Final Thoughts: Protect Your Business & Your Team
While legally mandated, workers’ compensation can also be viewed as a protective measure designed to defend your employees as well as the business itself. Adopting effective strategies helps mitigate fines while creating a more compliant workspace that encourages workplace safety. Make sure your business stays compliant with the use of the Controlio app. Moving from paper timesheets to digital ones is a great first step towards compliance.
