What's happening
This bill lowers the payroll threshold for compulsory workplace safety programs from $800,000 to $1.2 million and requires annual adjustments.
Why it matters
Expands the number of businesses required to implement workplace safety programs. by raising the payroll threshold from $800,000 to $1.2 million, potentially impacting more midsize employers and increasing workplace safety oversight.
Introduces an annual automatic adjustment to the payroll threshold. based on federal wage data, which means the threshold will keep pace with inflation and labor costs, ensuring the requirement remains relevant as the economy changes.
Could lead to increased administrative and compliance costs for newly affected employers. , as they must now arrange and document safety evaluations, implement recommended changes, and undergo follow-up inspections.
Aims to reduce workplace injuries and compensation claims. by targeting employers with higher experience ratings (i.e., those with worse claims histories), potentially lowering insurance premiums and improving worker safety over time.
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Who cares
Employers with annual payrolls above $800,000 through $1.2 million
Those with experience ratings above 1.2 would fall outside the compulsory workplace safety and loss prevention program under the bill’s higher payroll threshold.
New York State Department of Labor
The commissioner would annually adjust the program’s payroll threshold based on increases in private-industry wages and salaries reported in the federal Employment Cost Index.
Workers’ compensation insurers
The higher threshold would narrow the employers subject to program requirements that include insurer inspections of recommended safety fixes.
Employees at affected workplaces
Raising the payroll threshold would remove some employers from requirements for safety consultations, written evaluations and implementation of recommended remedial actions.
Headline styles
Tougher Workplace Safety Rules
Plain English, a few words. Used as the page title.
Sponsors
2 Co-sponsors
History
- Print number 4369a
- Amend and recommit to finance
- Reported and committed to finance
- Referred to labor
- Referred to labor
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Expand Workplace Safety Program
In Assembly Committee · Labor · Sponsor Kenneth Zebrowski
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4369--A
2017-2018 Regular Sessions
IN SENATE
February 10, 2017
Introduced by Sens. HANNON, DeFRANCISCO, KAMINSKY -- read twice and ordered printed, and when printed to be committed to the Committee on Labor -- recommitted to the Committee on Labor in accordance with Senate Rule 6, sec. 8 -- reported favorably from said committee and committed to the Committee on Finance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
AN ACT to amend the workers' compensation law, in relation to workplace safety and loss prevention programs
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivisions 1 and 2 of section 134 of the workers' compensation law, as amended by chapter 6 of the laws of 2007 and subdivision 1 as further amended by section 104 of part A of chapter 62 of the laws of 2011, are amended to read as follows:
1. The commissioner of labor, in consultation with the superintendent of financial services and the chair of the board shall develop a compulsory workplace safety and loss prevention program for all employers whose most recent annual payroll is in excess of [eight] one million two hundred thousand dollars and whose most recent experience rating exceeds the level of 1.2. The commissioner of labor shall adjust the annual payroll amount in this subdivision annually beginning on the first of March next succeeding the date on which the chapter of the laws of two thousand eighteen that amended this subdivision shall have become law. Such adjustment shall be based on the percentage increase in the wages and salaries for private industry workers for the preceding calendar year as stated in the Employment Cost Index reported by the United States Bureau of Labor Statistics. The commissioner of labor shall promulgate rules and regulations for the implementation of safety, drug and alcohol prevention, and return to work incentive programs.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04629-02-8
S. 4369--A 2
2. The commissioner of labor shall provide written notification to employers whose most recent annual payroll is in excess of [eight] one million two hundred thousand dollars and whose most recent experience rating exceeds the level of 1.2 that they are required to undergo a workplace safety and loss prevention consultation and written evaluation. Copies of the written notification shall be provided to the department of labor and the employer's insurer. The employer must arrange for the consultation and evaluation within thirty days after receiving the notification and must within ten days thereafter notify its insurer and the department of labor in writing of the means by which the evaluation is to be accomplished. The employer must provide its insurer and the department of labor with a copy of the evaluation within thirty days after receiving it from the safety and loss consultant. Any remedial action recommended in the evaluation must be implemented by the employer within a reasonable period of time, but not to exceed six months after the employer receives the evaluation. The insurer, within sixty days after the expiration of such six month period, shall conduct an inspection to ascertain whether the recommended remedial action has been implemented, and the insurer shall within forty-five days thereafter provide to the employer and the department of labor a copy of its inspection report.
§ 2. This act shall take effect on the first of January next succeeding the date on which it shall have become a law.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the workers' compensation law, in relation to workplace safety and loss prevention programs
Purpose
The purpose of this bill is to update the annual payroll amount that triggers the requirement for employers to undergo a workplace safety and loss prevention consultation and written evaluation.
Summary of provisions
Section one of this bill amends Section 134 of the workers' compensation law by changing the $800,000 annual payroll threshold to $1.2 million. Annually thereafter, the payroll threshold would be adjusted based upon data in the Employment Cost Index reported by the United States Bureau of Labor Statistics.
Section two of the bill relates to the effective date.
Justification
The Workplace Safety & Loss Prevention Program was created in 1997 by statute to reduce workplace injuries. The program is required for all employers whose most recent annual payroll is in excess of $800,000 and whose most recent experience rating exceeds the level of 1.2. Employers who meet these criteria are required to undergo a workplace safety and loss prevention consultation and evaluation.
Employers required to undergo a consultation and evaluation must pay a fee for the required consultation, which must be performed by a certi- fied consultant. These fees can be substantial. Any additional costs incurred during the course of the consultation, such as sampling, labo- ratory fees and laboratory reports, must be paid by the employer in addition to the consultation fee. If remedial action is recommended by the consultant, it must be implemented by the employer within six months. Employers can spend several thousands of dollars to comply with the requirements of the statute.
Over the last 19 years, payrolls have increased substantially. The law, which was originally intended to apply to larger employers, is now capturing smaller ones because the payroll threshold has not been adjusted. A recent annual report of the Workers Compensation Insurance Rating Board, which administers the program, indicates a 46% increase in the number of employers who were required to undergo a safety and loss prevention consultation and evaluation in 2014 compared to 2013. The failure to update the payroll threshold to reflect current labor costs is resulting in increased administrative and financial burdens on New York's small businesses.
Therefore, the $800,000 payroll threshold needs to be adjusted to reflect today's payroll costs. Based upon the increase in wages and salaries of private industry workers as reported by in the Employment Cost Index published by the U.S. Bureau of Labor Statistics, a payroll threshold of $800,000 in 1997 would equate today to approximately $1.2 million.
Legislative history
New Bill
Fiscal implications
None
Effective date
This act shall take effect on the first of January next succeeding the date on which is shall have become a law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.