What's happening
This bill gives New York small businesses affected by COVID-19 an extra 90 days to pay workers' compensation insurance premiums.
Why it matters
Eases immediate financial pressure. By extending the deadline for workers’ compensation insurance premium payments, small businesses get crucial short-term cash flow relief, helping them stay afloat during periods of mandatory COVID-19 closures or quarantines.
Protects insurance coverage. The bill ensures that small businesses won’t lose their workers’ compensation insurance due to delayed payments, which protects both employees’ rights to benefits and employers from potential legal liabilities.
Targets the most vulnerable. The definition of “small business” (independently owned, resident in New York, and with 100 or fewer employees) focuses this relief on businesses most likely to struggle with cash shortages during the pandemic, rather than larger companies with more resources.
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Who cares
Headline styles
Delay Workers' Comp Payments
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to labor
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
8373
IN SENATE
May 19, 2020
Introduced by Sen. JORDAN -- read twice and ordered printed, and when printed to be committed to the Committee on Labor
AN ACT to provide small businesses affected by COVID-19 an additional 90 days to pay certain premiums for workers' compensation insurance
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Notwithstanding any law, rule or regulation to the contrary, for the duration of any mandatory or precautionary order of quarantine or isolation issued through an executive order from the governor or by the state of New York, the department of health, local board of health, or any governmental entity duly authorized to issue such order due to COVID-19, small businesses shall have an additional 90 days to pay any workers' compensation insurance premiums which become due during such time. Non-payment of such premiums shall not constitute grounds for cancellation of any workers' compensation insurance policy. For purposes of this act, "small business" shall mean a business which is resident in this state, independently owned and operated and who employs one hundred full-time equivalent employees or less.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD16371-01-0
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to provide small businesses affected by COVID-19 an additional 90 days to pay certain premiums for workers' compensation insurance
Summary of provisions
Section 1 provides that small businesses, defined as a business owned and operated by a resident of New York State with one hundred employees or less, shall have an additional 90 days to pay any workers' compen- sation insurance premiums which become due during such time and further provides that nonpayment during such time shall not be grounds for cancellation of the workers' compensation insurance policy.
Section 2 establishes the effective date.
Justification
The outbreak of COVID-19 and subsequent measures taken to combat the spread of the pandemic have been devastating for the economy of New York State. Perhaps no group feels this more acutely than small business owners, who in normal times operate on thin margins. The combination of depressed demand and the inability for some businesses to operate means that many hard working small business owners may not be able to maintain their livelihood after the end of the pandemic. On top of these concerns is the fact that these businesses will continue to pay workers' compensation insurance for, in some instances, a workforce that is not currently able to work. This is a burden which may prove fatal to some small businesses.
This legislation is a measure aimed at giving small business owners a degree of support necessary for the long-term survival of their busi- nesses. It provides that small businesses are given an extended period to pay their premiums on workers' compensation insurance which would have come due during the time of the pandemic. This bill would enable New York State to allow business owners time to "catch up" on their insurance premiums and would help prevent the spread of economic decline.
Legislative history
New bill.
Fiscal implications
Undetermined.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.