Workers' Compensation Coverage
Complying with the Law
The Workers' Compensation Law requires that employers obtain and continuously keep in effect workers' compensation coverage for all their employees. (Employees)
Businesses meet this requirement of the law by:
- Obtaining and maintaining a workers' compensation insurance policy; or
- Obtaining self-insurance for workers' compensation; or
- Be legally exempt from the requirement to provide workers' compensation coverage.
Are Any For-Profit Businesses Exempt?
There are only very limited situations where for-profit businesses are exempt from providing workers' compensation coverage, including:
- The business is owned by one individual with no employees, no leased employees, no borrowed employees, no part-time employees, no unpaid volunteers (including family members) and no subcontractors and is not a corporation; or
- The business is a partnership under the laws of New York State, and there are no employees, no leased employees, no borrowed employees, no part-time employees, no unpaid volunteers (including family members) and no subcontractors; or
- The business is a one-or-two person owned corporation, with those individuals owning all of the stock and holding all offices of the corporation and there are no employees, no leased employees, no borrowed employees, no part-time employees, no unpaid volunteers (including family members) and no subcontractors. Specifically, if two people own the corporation, each person must own at least one share of stock and between them own all the shares of stock in the corporation. In addition, they both must be corporate officers and between the two of them hold all the offices of the corporation.
Posting of Notice of Workers' Compensation Coverage
According to Section 51 of the Workers' Compensation Law, employers must post a Form Notice of Compliance - Workers' Compensation Law (C-105) . Most employers obtain this form from their workers' compensation insurance carrier. Employers that are approved by the Board as self-insurers may contact the Self-Insurance Office at 518-402-0247 for copies of this form; while employers that are participating in Group Self-Insurance may contact their Group Administrator.
The Workers' Compensation Board prescribes Form C-105 and requires that the form include the name, address and phone number of the insurer and the policy number of the employer. It must be posted in a conspicuous place in the employer's place of business. Violations of this requirement can result in a fine of up to $250 per violation.
If you have any questions, please call the Board's Bureau of Compliance at 866-298-7830 or the Self-Insurance Office at (518) 402-0247.