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A00810 Summary:

BILL NOA00810
 
SAME ASNo Same As
 
SPONSORPretlow
 
COSPNSR
 
MLTSPNSR
 
Add 138, Work Comp L
 
Relates to the designation of workers' compensation coverage for certain employees.
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A00810 Actions:

BILL NOA00810
 
01/09/2017referred to labor
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A00810 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A810
 
SPONSOR: Pretlow
  TITLE OF BILL: An act to amend the workers' compensation law, in relation to the desig- nation of coverage for certain employees   PURPOSE OR GENERAL IDEA OF BILL: This bill intends to forbid workers compensation carriers from forcing policyholders to cover individuals who are not their employees.   SUMMARY OF SPECIFIC PROVISIONS: Section one of the bill provides that only a workers compensation poli- cyholder or the workers compensation board shall determine that an indi- vidual is the employee of such policy holder and therefore required to be covered by such employer's workers compensation insurance policy. Section two of the bill provides that the bill shall be effective imme- diately.   JUSTIFICATION: Insurance companies, including the State Insurance Fund (SIF), are forc- ing some employers, particularly in the racing industry, to cover indi- viduals who are not their employees, under their workers compensation policy. Payments made by horse owners to their veterinarian or their catch driver - who are themselves independent contractors have been classified as "wages" by such companies for the purpose of increasing policyholder premiums, while the individuals covered could never receive benefits under the law, since the workers compensation board and various "employment status" tests conclude that such individuals are not in the employ of the horse owner and policy holder. This practice increases the cost of workers compensation in this industry for no purpose other than to increase revenues to the insurance company; it has caused individuals who would otherwise hire one or two employees to fire them in order to avoid the requirement of procuring a workers compensation policy; and it has led some horse owners to force their legitimate employee(s) to become part owners of a horse, which negates the necessity to cover those employees, but leaves the worker unprotected in case of injury.   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: None to the state.   EFFECTIVE DATE: This act shall take effect immediately.
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A00810 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                           810
 
                               2017-2018 Regular Sessions
 
                   IN ASSEMBLY
 
                                     January 9, 2017
                                       ___________
 
        Introduced  by M. of A. PRETLOW -- read once and referred to the Commit-
          tee on Labor
 
        AN ACT to amend the workers' compensation law, in relation to the desig-
          nation of coverage for certain employees
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  The  workers' compensation law is amended by adding a new
     2  section 138 to read as follows:
     3    § 138. Coverage. Each employer as defined under section  two  of  this
     4  chapter,  or  the board, shall designate the employees for whom coverage
     5  is to be provided under this chapter and no insurance carrier as defined
     6  in subdivision twelve of section two of this chapter shall make  such  a
     7  determination,  nor  shall any such insurance carrier base its premiums,
     8  in whole or in part, on the remuneration paid to  any  person  whom  the
     9  employer  or  the board has not designated for coverage under an employ-
    10  er's workers' compensation insurance policy.  Nothing  in  this  section
    11  shall  alter  an  employer's obligation to provide workers' compensation
    12  coverage to its employees as determined by such employer  or  the  board
    13  pursuant to section ten of this chapter or any other law, nor shall this
    14  section  release  any employer from the penalties established under this
    15  chapter or any other chapter for non-compliance with the  provisions  of
    16  this chapter.
    17    § 2. This act shall take effect immediately.
 
 
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05223-01-7
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