TITLE OF BILL: An act to amend the workers' compensation law, in
relation to the designation 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 policyholder or the workers compensation
board shall determine that an individual 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
JUSTIFICATION: Insurance companies, including the State Insurance Fund
(SIF), are forcing some employers, particularly in the racing
industry, to cover individuals 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
EFFECTIVE DATE: This act shall take effect immediately.
S T A T E O F N E W Y O R K
2015-2016 Regular Sessions
I N A S S E M B L Y
January 15, 2015
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 S 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 S 2. This act shall take effect immediately.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.