We stumbled on this requirement of the New York State Workers’ Comp Law, from September of 2007, the following Out-of-State Employers Policy.
Full NY Workers’ Compensation Coverage Required
An out-of-state employer with an individual or individuals working in New York State is required to have a full NYS workers’ compensation policy if that employer (as defined in the WCL) meets ANY of the following criteria:
- The employer is working as a contractor/general contractor/subcontractor on a construction project in New York.
- In the previous year, the employer had employees physically in New York for:
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- at least 40 hours of every week for a period of longer than 2 consecutive weeks, or
- had employees present in New York for 25 or more individual days (e.g. – 5 employees working for 5 days in New York equals 25 individual employee days.)
If an out-of-state employer with an individual or individuals working in New York State meets any of the above requirements, NY MUST be listed on Item 3A on the Information page of an employer’s workers’ compensation insurance policy. This means that the employer is fully covered under the NY Workers’ Compensation Law.
CF Note:
I’m not sure how this will be monitored by NY. How would NY know how many individual employee days were spent in New York by an out-of-state employer, or if they had an employee there for more than two consecutive weeks?
I’m also not really understanding the purpose of this requirement; if I were interested enough to research the reasons behind it, I suppose I would begin by ‘following the money.’
Finally, the fact that is was passed in 2007, and I’m only becoming aware of it 6 years later, tells me it’s not a really serious requirement. I was tipped off by a local California underwriter during the process of quoting a risk that has people occasionally in NY. The underwriter just wanted to make sure I was aware of this, and promised to place a NY policy if it were required.
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