New York Workers' Comp Rates Slashed

July 12, 2007
New York state employers will be able to save about $1 billion in workers' compensation costs in the 2007-2008 fiscal year, after a 20.5 percent in workers' compensation insurance rates takes effect.

The rate drop – set to take effect July 15 – is part of a state workers' compensation reform bill signed by Gov. Eliot Spitzer in March. One of the aims of the bill is to lower the cost of workers’ compensation insurance while increasing the weekly benefits for workers. Spitzer originally projected a rate decline of 10 percent to 15 percent.

“We promised that we would reduce the cost of workers’ compensation as part of our effort to make New York more business-friendly,” Spitzer said. “I’m proud to say that the reforms we instituted have already produced the biggest single-year decline in workers’ compensation rates since at least 1975, the first year for which data is currently available.”

Aiming to be “the Best in the Nation”

New York State Insurance Superintendent Eric Dinallo, who ordered the 20.5 percent decline, said he and other members of the New York Legislature will be working together to make continued improvements to New York's workers' compensation system, adding that he hopes it becomes “the best in the nation.”

“We believe that the rate reduction is fair, that the private carriers will remain profitable and that the market will continue to be competitive,” Dinallo said.

Kenneth Adams, president and CEO of the Business Council, commented that the higher level of savings is good news for the New York businesses community. However, Adams added that he would like to see the state's workers' compensation costs drop even further.

Meanwhile, Denis Hughes, president of the New York State AFL-CIO, said that “raising benefits for the first time in 15 years, while implementing record-setting premium reductions, has enhanced the lives of injured workers and the well-being of this state's employers.”

In addition to offering substantially reduced workers' compensation rates, state officials said that the cuts will increase the average amount paid to injured workers by 75 percent while still lowering employer costs significantly by creating fair limits on the benefit duration.

The reform package enacted by Spitzer and the New York Legislature also capped permanent partial disabilities for 10 years.

Sponsored Recommendations

3 Essential Elements for a Strong Safety Culture

March 13, 2024
Organizations globally have increased their attention on safety culture: trying to figure out what it really is and the aspects that are necessary to develop and sustain it. And...

Making the Case for Occupational Health Software

March 13, 2024
Deciding to invest in Occupational Health (OH) software can be a challenging leap for many organizations. This article will equip businesses with insightful strategies for effectively...

Fighting the Flu: Solutions for the Workplace

March 13, 2024
Seasonal flu continues to wreak considerable havoc both on individual wellness, as well as on our business continuity and productivity. Explore these solutions for protecting ...

Preventing SIFs with Digitization: Reduce Serious Injuries and Fatalities with Technology

March 13, 2024
This eBook discusses the origins of SIF prevention, outlines principles, models and tools available to EHS leaders to better detect and address SIF potential in their business...

Voice your opinion!

To join the conversation, and become an exclusive member of EHS Today, create an account today!