What are the Penalties for Not Having Workers Compensation Insurance?

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Robert Golan

New York workers’ compensation law is quite simple. If you are an employer in the State of New York you are required to provide workers’ compensation insurance for all of your employees with limited exceptions. These exceptions are covered in our two-part blog series: Who is Not Eligible for New York Workers Compensation Benefits.

 

Who is Responsible?

The owner or partners of a company are personally liable for obtaining workers’ compensation insurance. For corporations this is the responsibility of the president, secretary and treasurer of a corporation.

New York Workers Compensation Benefits

What Proof is Required for Workers Compensation Coverage?

The employer needs to have proof that it has a valid, up-to-date workers’ compensation insurance policy, proof that he/she is self-insured for workers’ compensation, or proof that the company is legally exempt from obtaining workers’ compensation coverage. In all of these cases, the business is also required to be keeping proper, accurate business records.

The New York Workers’ Compensation Board may require the employer to provide proof of workers comp coverage within 10 days following the Board’s request. If the employer fails to do this, the Board will assume that the employer is violating the law.

Penalties for Not Providing Coverage

Not having workers’ compensation coverage can easily bankrupt a business. The employer will be assessed a penalty of $2000 for each 10-day period of non-compliance (over $72,000 per year) and you will be required to pay the compensation and medical costs for the injured employee—which can be considerable if the employee is severely injured and/or permanently disabled–as well as any other penalties the Board assesses.

In addition, criminal charges of Failure to Secure Coverage may be filed which may result in a misdemeanor with a fine between $1000 and $5000 for companies with less than five employees and $5000 to $50,000 for companies with more than five employees.

If the employer has been charged previously of Failure to Secure Coverage within the last five years and violates the law again, the employer may be charged with Subsequent Failure to Secure Coverage, a class D felony, and fined between $10,000 and $50,000 in addition to any other penalties and fines as indicated by the law.

Does Your Employer Have Workers’ Compensation Coverage?

It really doesn’t matter if you get sick or are injured on the job, you need to be compensated for your time and medical bills and to get in touch with a workers’ comp attorney in Long Island, NY. Contact Robert Golan by calling 516-586-3910 to discuss your case, or complete our simple, online contact form to receive a free case evaluation.

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