What's happening
This bill lowers the payroll threshold for required workplace safety programs and provides for annual payroll adjustments based on wage indexes.
Why it matters
More small and medium-sized businesses will now be required to implement workplace safety and loss prevention programs. , as the payroll threshold for mandatory participation drops from $8 million to $1.2 million. This significantly increases the number of employers affected, potentially improving safety standards across a broader segment of the workforce.
The payroll threshold will be automatically adjusted each year based on federal wage and salary data. , ensuring that the requirement keeps pace with inflation and changes in average wages. This prevents the threshold from becoming outdated and maintains ongoing relevance.
Employers above the new threshold, with high experience ratings (indicating higher past insurance claims), will have to undergo regular safety evaluations and potentially implement remedial actions. This means more accountability for businesses with higher workplace risks, which could lead to safer work environments and potentially lower workers’ compensation costs over time.
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Who cares
Headline styles
Expand Workplace Safety Programs
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 8
No co-sponsors yet.
History
- 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 Rules
In Assembly Committee · Labor · Sponsor Kenneth Zebrowski
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4757
2019-2020 Regular Sessions
IN SENATE
March 22, 2019
Introduced by Sen. BROOKS -- read twice and ordered printed, and when printed to be committed to the Committee on Labor
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 nineteen 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.
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
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06524-01-9
S. 4757 2
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 1. amends subdivisions 1 and 2 of 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 2. is the enacting clause.
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 21 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 under go 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 approximate $1.2 million in today's dollars.
Legislative history
A.1458-A of 2017-18, A.9807 of 2015-16.
Fiscal implications
None.
Effective date
This act shall take effect on the ninetieth day after it shall have become law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.