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History
- Referred to labor
- Referred to labor
Full text
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Sponsor's memo
BILL NUMBER:S1293
Title of bill
An act to amend the workers' compensation law and the insurance law, in relation to rates for workers' compensation
Purpose or general idea of bill
To change the way workers' compensation premiums are calculated to be based on the hours employees work instead of their salary.
Summary of specific provisions
Section 1 of the bill amends the workers' compensation law to provide that premiums paid on behalf of employees shall be determined on the basis of the number of hours worked for the employer. Records currently kept as required by Section 195 or Section 220 of the labor law would be utilized in the rate determination process. Any employer who fails to maintain such accurate records would be guilty of a fraudulent practice.
Section 2 of the bill amends the insurance law to require that premiums for workers' compensation insurance be calculated using their hours of work instead of their salary. Any employer who fails to submit or maintain accurate records would be guilty of a fraudulent practice as defined in Section 114 of the workers' compensation law.
Section 3 provides that this act shall take effect 180 days after it becomes a law.
Justification
Utilization of the salaries of employees serves as a competitive disadvantage to those employers who choose to compensate their workers at a higher wage level. In a "low bid" environment, this formula unfairly acts against union contractors who have negotiated terms and conditions favorable to the bargaining unit employees. Calculation of rates based on hours worked would be a more accurate measure of actual risk on the job while eliminating the competitive disadvantage the present arrangement engenders.
Prior legislative history
2009: S3339 (Duane), Died in Labor 2010: S3339 (Duane), Died in Labor
Fiscal implications for state and local governments
None.
Effective date
One hundred eighty days after it becomes a law, with provisions.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.