Workers' Compensation Coverage
Understanding Workers' Compensation Insurance
New York Construction Employment Payroll Limitation
The Payroll Limitation Law was enacted to apply a maximum payroll limitation for eligible construction classification codes for workers' compensation insurance premium determination purposes. The Law does not apply, however, to employments engaged in the construction of one or two-family residential housing.
A payroll limitation is applied to the actual weekly payroll per employee in each of the eligible construction classification codes. Actual payroll, and not the limited payroll, is used for employments engaged in the construction of one or two-family residential housing.
The Law also created three geographic territories for the purpose of varying the required classification rate off-balance between upstate and downstate employers. These off-balance charges are referred to as territory premium differentials.
Please contact the Compensation Insurance Rating Board (CIRB) at 212-697-3535 or at www.nycirb.org for more information regarding the Payroll Limitation Law.