Is Workers' Compensation Coverage Required?

Workers' Compensation Coverage Requirements

Virtually all employers in New York State must provide workers' compensation coverage for their employees (WCL §2 and 3). Employers must post notice of coverage in their place(s) of business (WCL §51).

The following links provide specific coverage requirements for workers' compensation insurance:

Athletic leagues/teams/businesses

For-profit athletic leagues/teams/businesses

For-profit athletic leagues/teams/businesses are required to carry a New York State workers' compensation insurance policy if they have any individuals working in New York State. This includes individuals playing any games, recruiting, scouting or any other activity for the athletic leagues/teams/businesses. This also includes any individuals that are "volunteering" their services.

Nonprofit athletic leagues/teams/businesses

Athletes

Athletes involved in supervised amateur athletic activities operated on a nonprofit basis are not required to be covered by NYS workers' compensation insurance, provided that such athletes are not otherwise engaged or employed by any person, firm, or corporation participating in such athletic activity (WCL §3 Group 18). This includes Division 1 athletes that play for nonprofit colleges and universities even though they are receiving scholarships, room and board.

Coaches and other staff

Nonprofit youth leagues/teams that are NOT classified as religious, charitable or educational (Section 501(c)(3) under the IRS tax code) and are compensating coaches, trainers, referees, concession stand staff or any other individuals are required to carry a New York State workers' compensation insurance policy to cover the compensated coaches, trainers, referees, concession stand staff or other individuals working for the league.

Nonprofit youth leagues/teams that ARE classified as religious, charitable or educational (Section 501(c)(3) under the IRS tax code) and are compensating trainers, referees, concession stand staff are required to carry a New York State workers' compensation insurance policy. Note: (Workers' compensation insurance is NOT required IF only coaches are compensated by religious, charitable or educational nonprofit youth leagues/teams, since coaches are considered teachers and, as such, are not required to be covered by NY workers' compensation insurance. However such 501(c)(3) nonprofits are encouraged to obtain a voluntary workers' compensation insurance policy to protect both the employer and the coaches.

Black car operators

A black car operator, as defined in Article 6-F of the executive law ("The Black Car Law"), is an "employee" of the New York Black Car Operators' Injury Compensation Fund, Inc. (NYBCOICF). NYBCOICF began providing coverage on January 20, 2000, and currently provides workers' compensation coverage for the drivers affiliated with its members.

Limousine companies must become members of the NYBCOICF if they meet the criteria outlined in the statute. The members of NYBCOICF are large limousine companies (central dispatch facilities) that own less than 50% of their vehicles and receive 90% of their fares as non-cash. Once a limousine company meets these requirements it MUST become a member of the Fund.

Black Car and limousine companies operating outside of New York State are also required to become members of the NYBCOICF if they do work in New York State and meet the criteria outlined in the statute.

More information is available at http://www.nybcf.org/opens external website

Related page

• Black Car Operators - Disability and Paid Family Leave Benefits Coverage Requirements

Borrowed employees

A business may not "borrow" employees from another business without each business having New York State workers' compensation insurance coverage in its own legal name. Parent corporations that lend employees to "subsidiary" corporations that the "parent" corporation fully owns must have a workers' compensation policy that lists all the legal entities using employees and must be able to provide proof of workers' compensation coverage for each of the legal entities using employees under their specific Federal Employer Identification Number (FEIN).

The only exception is when a business obtains all of its employees from a Temporary Service Agency (TSA). When a TSA has a full New York State workers' compensation insurance policy and directly pays individuals, provides their direction and control, maintains the ability to hire and fire them and satisfies other factors as defined by case law in determining an employer/employee relationship, the TSA is generally considered the primary employer under the Workers' Compensation Law. A Temporary Service Agency is a business that is classified as a temporary service agency under the business's North American Industrial Classification System (NAICS) code

Related page

• Borrowed employees - Disability and Paid Family Leave Benefits Coverage Requirements

Family members

Family members providing paid or unpaid services to a for-profit business are counted as employees for workers' compensation coverage purposes.

Please note there could be different coverage requirements for family members providing services in the following situations:

• Farms
• Household Employers

Farms

Workers' compensation insurance is required for all farms who have employees.

The spouse and minor children (under 18 years old) of a farmer are NOT counted as employees under the WCL as long as they are NOT under an express contract of hire.

If a farm labor contractor recruits or supplies farm laborers for work on a farm, such farm laborers are generally deemed employees of the farmer.

Workers' Compensation Insurance and Farm Labor ContractorsPDF

Related page

• Farms - Disability and Paid Family Leave Benefits Coverage Requirements

For-profit businesses

For Profit Businesses generally include, but are not limited to, sole proprietors, partnerships, LLCs, LLPs, and most corporations.

Under the Workers' Compensation Law (WCL) most individuals providing services to a for-profit business will be considered employees of that business.

An employee is a person (including family members) who performs under the supervision, direction, and control of an employer either on or off their premises. This applies whether the worker is:

• Part-time
• Full-time
• Temporary
• Seasonal
• Casual/ Day Labor
• Leased
• Borrowed
• Unpaid - including volunteers and family members

These employees must be covered by the employer for workers' compensation insurance.

Workers' compensation coverage is not required for partnerships, LLCs, and LLPs that do not have employees. Members and partners are not considered employees for the purposes of obtaining workers' compensation insurance, but may voluntarily cover themselves under a workers' compensation policy.

Workers' compensation coverage is not required for a sole proprietor who does not have employees. However, a sole proprietor may voluntarily cover themselves under a workers' compensation policy.

Workers' Compensation coverage is not required if 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 (each individual must hold an office and own at least one share of stock). Other than the corporate officer(s), there are no employees, day labor, leased employees, borrowed employees, part-time employees, other stockholders, unpaid volunteers (including family members) or subcontractors.

Workers' Compensation coverage is required if the corporation has more than two corporate officers or more than two shareholders, or where the one or two corporate officers do not own all the shares of stock (each owning at least one share).

Related pages

• For-profit businesses
• Ways to Obtain Insurance
• For-profit businesses - Disability and Paid Family Leave Benefits Coverage Requirements

For-profit corporation with no employees

Workers' Compensation coverage is not required if 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 (each individual must hold an office and own at least one share of stock). Other than the corporate officer(s), there are no employees, day labor, leased employees, borrowed employees, part-time employees, other stockholders, unpaid volunteers (including family members) or subcontractors.

Workers' Compensation coverage is required if the corporation has more than two corporate officers or more than two shareholders, or where the one or two corporate officers do not own all the shares of stock (each owning at least one share).

Related page

For-profit corporation with no employees - Disability and Paid Family Leave Benefits Coverage Requirements

Foreign government employees

Workers' Compensation coverage is not required if 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 (each individual must hold an office and own at least one share of stock). Other than the corporate officer(s), there are no employees, day labor, leased employees, borrowed employees, part-time employees, other stockholders, unpaid volunteers (including family members) or subcontractors.

Workers' Compensation coverage is required if the corporation has more than two corporate officers or more than two shareholders, or where the one or two corporate officers do not own all the shares of stock (each owning at least one share).

Household employers (employers of domestic workers)

Household employees include certain types of casual labor and domestic workers.

Casual labor

• Workers' Compensation coverage is not required for individuals, including minors, doing yard work or occasional chores in and around a one-family, owner-occupied dwelling.
• Workers' Compensation coverage is required if a minor handles power-driven machinery, including a power lawnmower.
• Workers' Compensation coverage is also required if the chores or jobs are regularly scheduled.

Domestic workers

Domestic workers are defined as chauffeurs, nannies, home health aides, nurses, babysitters, au pairs, maids, cooks, housekeepers, laundry workers, butlers, companions, and gardeners in a private household (12 NYCRR §355).

Workers' Compensation coverage is required if the domestic worker is employed forty or more hours per week by the same employer. Time spent at the residence including sleeping and eating and any additional time spent off premises running errands and performing other duties for the employer count towards the total hours worked per week. Also included in the calculation of hours worked per week are all hours where the employer requires the domestic worker's presence. For example, if the employer goes away for two full days and requires the domestic worker's presence, this counts as 48 hours worked.

Note: Domestic/household workers are not covered under your homeowner's insurance policy's workers' compensation insurance rider. Insurance Law §3420(j)

Workers' Compensation coverage is not required if the only people who work for the household are domestic workers in a private household who individually work less than 40 hours per week for that household and they do not live on premises.

Related page

• Household employers (employers of domestic workers) - Disability and Paid Family Leave Benefits Coverage Requirements

Independent contractor

Construction Industry Fair Play Act

New York State’s Construction Industry Fair Play Act (the Act) took effect on October 26, 2010. For the purposes of workers’ compensation, disability benefits, and Paid Family Leave, the Act applies to all accidents on or after that date.

Any worker who was injured on or after October 26, 2010, while performing services for a contractor, is presumed to be the employee of that contractor for the purposes of workers’ compensation, disability benefits, and Paid Family Leave, subject to the independent contractor test contained in the statute and outlined below.

Under the Act, a person working for an employer in the construction industry is only an independent contractor if they meet a two-part test:

1. An individual is an independent contractor if an employer can prove ALL three of the following criteria:
   1. The individual is free from control and direction in performing their job.
   2. The individual is performing services outside the usual course of business for the employer.
   3. The individual is engaged in an independently established trade, occupation or business that is similar to the service they perform.
2. A sole proprietor, partnership, corporation or other entity is an entity separate from the contractor, only if it meets ALL twelve of the following criteria:
   1. Perform the service free from direction or control, subject only to the right of the contractor to specify the desired result
   2. Is not subject to cancellation when its work with the contractor ends
   3. Has a substantial investment of capital in the entity beyond ordinary tools and equipment and a personal vehicle
   4. Owns the capital goods, gains the profits and bears the losses of the entity
   5. Makes its services available to the general public or business community on a regular basis
   6. Includes the services provided on a federal income tax schedule as an independent business
   7. Perform the services under the entity's name
   8. When the services being provided require a license or permit, the business entity obtains and pays for the license or permit in the business entity's name;
   9. Furnishes the tools and equipment necessary to provide the service
   10. Hire its own employees without contractor approval, pays the employees without reimbursement from the contractor and reports the employees' income to the Internal Revenue Service
   11. Has the right to perform similar services for others on whatever basis and whenever it chooses
   12. Does not represent the entity or the employees of the entity as its own employees to its customers

Transportation Industry Fair Play Act

Under the Commercial Goods Transportation Industry Fair Play Act, a driver who possesses a state-issued driver's license and who transports goods in the state of New York while operating a commercial motor vehicle as defined in Labor Law Section 862-a(3) is presumed to be the employee of a commercial goods transportation contractor who compensates the driver. The driver is only considered an independent contractor if they meet a two-part test:

1. A driver is an independent contractor if the alleged employer is required to report payment for their services on a federal income tax Form 1099 (if required by law), and ALL three of the following criteria are met:
   1. Driver is free from control and direction in performing their job
   2. Driver performs services outside the usual course of business for the employer
   3. Driver is engaged in an independently established trade, occupation or business that is like the service they perform
2. A sole proprietor, partnership, firm, corporation limited liability company, association, or other legal entity that may also be considered a commercial goods transportation contractor is a separate business entity only if it meets ALL eleven of the following criteria:
   1. Perform the service free from the direction or control over the means and manner of providing the service, subject only to the right of the commercial goods transportation contractor to specify the desired result or federal rule or regulation
   2. Is not subject to cancellation or destruction when its work with the commercial goods transportation contractor ends
   3. Has a substantial investment of capital in the entity, including but not limited to ordinary tools and equipment
   4. Owns or leases the capital goods and gains the profits and bears the losses of the entity
   5. Has the option to make its services available to the general public or others not a party to the business entity's written contract set forth in item seven in this list, on a regular basis
   6. Provides services reported on a federal income tax Form 1099, if required by law
   7. Perform the services pursuant to a written contract, under the entity's name, specifying that it is an independent contractor or a separate business entity from the commercial goods transportation contractor
   8. Pays for any required license or permit in the entity's name or where permitted by law, pays for reasonable use of the commercial goods transportation contractor's license or permit
   9. Hires its own employees without the commercial goods transportation contractor's approval, subject to reimbursement from the commercial goods transportation contractor
   10. Is not required by the commercial goods transportation contractor to represent itself as an employee of the commercial goods transportation contractor to its customers
   11. Has the right to perform similar services for others on whatever basis and whenever it chooses

All other industries

An individual outside the construction and transportation industries may be an independent contractor if they:

1. Perform the service free from direction or control, subject only to the right of the contractor to specify the desired result
2. Obtained their own Federal Employer Identification Number (FEIN) or have filed business or self-employment income tax returns based on work or service performed in the previous calendar year,
3. Maintain a separate business establishment,
4. Perform work different from that of the hiring business and works for other businesses,
5. Are responsible for performing satisfactorily under a specific contract and is in a position to succeed or fail if the business' expenses exceed its income,
6. Obtain a liability insurance policy (and if appropriate, workers' compensation and disability benefits insurance policies) under its own legal business name and federal employer identification number,
7. Have recurring business liabilities and obligations,
8. Advertise their own business,
9. Provide all equipment and materials necessary to fulfill the contract, or
10. Work under their own operating permit, contract or authority.

A business cannot require employees working for that business to obtain their own workers' compensation insurance policy or contribute towards a workers' compensation insurance policy.

However, a business may require an independent business that has its own employees to obtain a workers' compensation insurance policy if the independent business is working as a subcontractor. An independent business usually has characteristics such as media advertising, commercial telephone listing, business cards, business stationary or forms, its own Federal Employer Identification Number (FEIN), working under its own permits or operating authority, business insurance (liability & WC), and/or maintaining a separate establishment. The independent business has a significant investment in facilities and means of performing work.

In many instances, individuals alleged to be subcontractors have been determined by the Board, acting in its adjudicatory capacity, to be employees when such individuals have been injured and have filed claims against the general contractor. As a result, insurance carriers often assess general contractors premiums for coverage of all "subcontractors" on the job site, unless the subcontractors furnish proof that they have their own workers' compensation insurance policy. Accordingly, general contractors routinely require that subcontractors provide proof of their own workers' compensation coverage in order to co-work on the job. This results in many sole proprietors, partnerships, and one or two-person owned corporations with no employees who are not otherwise legally required to acquire a workers' compensation policy, being required to purchase a policy (and include themselves in that policy) in order to work for a particular general contractor.

Related page

• Household employers (employers of domestic workers) - Disability and Paid Family Leave Benefits Coverage Requirements

Jockey fund

A jockey, apprentice jockey, or exercise person performing services for an owner or trainer in connection with the training or racing of a thoroughbred horse at a facility of a racing association or corporation subject to article two or four of the racing, pari-mutuel wagering and breeding law and subject to the jurisdiction of the New York State Racing and Wagering Board, is regarded as the "employee" of The New York Jockey Injury Compensation Fund, Inc. Such individual is also considered the employee of all owners and trainers who are licensed or required to be licensed under article two or four of the racing, pari-mutuel wagering and breeding law at the time of any occurrence for which workers' compensation benefits are payable for such jockey, apprentice jockey or exercise person.

Related page

• Household employers (employers of domestic workers) - Disability and Paid Family Leave Benefits Coverage Requirements

Leased employees

Professional employer organizations (PEO) and leased employees

Workers' compensation coverage is required for employees that are leased by their employer. An employee is generally leased when the employer recruits and hires its employees and contracts with the leasing firm (PEO) to handle the payroll, taxes and benefit packages. Leasing firms (PEOs) must be licensed by the New York State Department of Labor. For more information regarding the leasing firm (PEO) and employer relationship see Article 31 section 922 of the Labor Law.

Currently, clients of PEOs may be covered by either of the following methods:

• Each client of a leasing firm may purchase its own workers' compensation insurance policy to cover its leased employees, or
• The PEO may obtain a workers' compensation insurance policy in the name of the client which would cover the leased employees only.

Both of the methods listed above require that proof of coverage be electronically submitted by the insurance carrier using the client legal entity name and FEIN. Individuals performing the administrative services of the PEO are counted as employees of the PEO.

NOTICE TO EMPLOYERS - Employers are responsible for covering "ALL" of their employees. If the PEO Is providing coverage for the leased employees the employer may have to obtain a separate policy to cover employees that are employed directly by the employer.

Related page

• Leased employees - Disability and Paid Family Leave Benefits Coverage Requirements

Licensed insurance agents

Workers' Compensation coverage is not required for certain Licensed Insurance Agents or Brokers if they meet all of the following requirements:

• has income based upon sales and not on the number of hours worked;
• is not a life insurance agent receiving a training allowance subsidy;
• has entered into a written contract that outlines the services that they are to perform – this contract may be terminated by either party at any time upon notice given to the other party;
• can work any hours they choose;
• incur their own expenses including automobile, travel and entertainment (office facilities and supplies may be provided by real estate firm); and
• shall NOT be treated as an employee for State and Federal tax purposes (other than FICA that is required for full time life insurance agents).

Related page

• Licensed insurance agents - Disability and Paid Family Leave Benefits Coverage Requirements

Licensed real estate agents

Workers' compensation coverage is not required for a licensed real estate agent if:

1. Substantially all compensation for services provided is directly related to sales or other output rather than the number of hours worked;
2. The services performed are pursuant to a contract between the real estate agent and the person for whom services are provided.
3. The written contract contains these provisions;
   1. The real estate agent is an independent contractor;
   2. The agent will be paid a commission on personal gross sales, that shall be directly related to sales or other output, with no relation to hours worked, and shall not be treated as an employee for tax purposes;
   3. The agent may work any hours they choose;
   4. The agent may work out of a personal own office or home, or out of the office of the person for whom services are performed;
   5. The agent is free to engage in outside employment;
   6. The person for whom services are performed may provide office facilities, clerical support, and supplies for agent's use, but the agent must bear any other expenses including travel and entertainment expenses;
   7. Both parties must comply with the requirements of Article 12-A of the Real Property law, but compliance shall not affect the real estate agent's status and an independent contractor;
   8. The contract may be terminated by either party at any time with notice given to the other.

For a complete description of the written contract requirements, refer to WCL § 2(4).

Related page

• Licensed Real Estate Agents - Disability and Paid Family Leave Benefits Coverage Requirements

Media sales representatives

A media sales representative is a contractor engaged in the sale or renewal of magazine subscriptions or the sale or renewal of magazine advertising space who receive no direction on how they perform services, are in control of their own work schedules, and who may refuse work assignments.

Workers' compensation coverage is not required for media sales representatives if:

1. Substantially all compensation for services provided is directly related to sales or other productivity rather than number of hours worked;
2. The sales representative is incorporated under New York State law and solely responsible for all workers' compensation premiums;
3. Services are performed pursuant to a written contract between the media sales representative and the party for whom services are performed; and
4. The written contract contains these provisions:
   1. The media sales representative is an independent contractor;
   2. Any fees will be commission based on the fixed rate outlined in the contract, there will be no compensation related to the number of hours worked, and the sales representative will not be treated as an employee for federal and state tax purposes;
   3. The media sales representative may work any hours, subject to limited restrictions;
   4. The media sales representative may work anywhere other than on the premises of the person for whom services are performed;
   5. The person for whom services are performed is not responsible for any reimbursement expenses other than those outlined in the written contract;
   6. The person for whom the services are performed and the media sales representative must comply with all articles of labor law that apply to their work, except article eighteen.
   7. The contract may be terminated by the media sales representative at any time with two weeks' notice given to the person for whom services are performed.

For a complete description of the written contract requirements, refer to WCL §2(4).

Related page

• Media Sales Representatives - Disability and Paid Family Leave Benefits Coverage Requirements

Native American enterprises

Workers’ Compensation insurance coverage is not required for Native American enterprises owned by the Native American tribe itself (i.e. Casinos). Native Americans and non-Native Americans working at the enterprise may be covered voluntarily.

Workers’ Compensation insurance coverage is not required for enterprises that are not owned by the tribe; but are instead owned by an individual, partnership, corporation etc.; and whose employees are working solely on a Native American reservation. Native Americans and non-Native Americans working at the enterprise may be covered voluntarily.

Any enterprise not owned by the Native American tribe itself that is working in New York State outside a Native American reservation must abide by the regular New York State coverage requirements for workers’ compensation insurance.

Related page

• Native American enterprises - Disability and Paid Family Leave Benefits Coverage Requirements

New York employers working outside New York State

Generally, a New York State workers' compensation policy covers all of a firm's employees who are located within New York State. That policy also covers employees that have incidental travel and temporary work assignments outside of New York State for New York workers' compensation insurance benefits if those employees are injured outside of New York State. In some cases, an employee whose work site is located outside the state but whose employer's office is located in New York State, may be entitled to collect workers' compensation benefits in New York State. The Board may determine that the claim is subject to New York workers' compensation benefits if the employer directs and controls the out-of-state employees' work activities from the New York office, or the employer issues paychecks from the New York office.

Due to every state and nation having different thresholds as to when an outside company working in their jurisdiction needs their specific coverage, New York employers working outside of New York State, even temporarily, should check for the local workers' compensation requirements in each state or nation where the employer is conducting business.

Nonprofit entities

Nonprofit entities that are compensating individuals for their services are required to obtain workers' compensation coverage for all employees with the following exceptions:

• Clergy or members of religious orders performing only religious duties (WCL § 3 Group 18).
• Members of supervised amateur athletic activities operated on a nonprofit basis, provided they are not otherwise engaged or employed by any person, firm, or corporation participating in such athletic activity (WCL § 3 Group 18).
• People engaged in a teaching capacity in or for a nonprofit institution designated under the IRS tax code as a religious, charitable, or educational organization. Teachers must only be performing teaching duties to be exempt from coverage.
• Persons receiving charitable aid from a religious or charitable institution who perform work in return for such aid and who are not under any express contract of hire, and certain persons receiving rehabilitation services in a sheltered workshop.
• People engaged in a non-manual capacity for a nonprofit institution designated under the IRS tax code as a religious, charitable, or educational organization.
• Compensated executive officers of a not-for-profit corporation or unincorporated association are exempt, if the institution is designated under the IRS tax code as a religious, charitable, or educational organization and they do not perform any manual labor.

Related page

• Nonprofit entities - Disability and Paid Family Leave Benefits Coverage Requirements

Nonprofit entities with no employees

Workers' Compensation coverage is not required for a nonprofit entity that is not compensating individuals (including executive officers) for their services. Please note that compensation includes stipends, room and board, and other "perks" that have monetary value. Money used solely to offset expenses incurred while performing activities for the nonprofit are not counted as stipends.

Workers' Compensation coverage is not required for a nonprofit that is designated under the IRS tax code as a religious, charitable, or educational organization if there are no employees other than compensated executive officers who do not perform manual labor.

Workers' Compensation coverage is required for a nonprofit corporation or unincorporated association that is not classified as religious, charitable, or educational (as designated under the IRS tax code) if there are compensated executive officers.

Related page

• Nonprofit entities with no employees - Disability and Paid Family Leave Benefits Coverage Requirements

Out-of-state employers with employees working in NYS

All out-of-state employers with employees or subcontractors working in New York State are required to carry a New York State workers' compensation insurance policy.

An employer has a full, statutory New York State Workers' Compensation insurance policy when New York is listed in "Item 3A" on the Information Page of the employer's workers' compensation insurance policy.

Full New York State workers' compensation coverage required

An out-of-state employer with an individual or individuals working in New York State is required to have a full, statutory New York State workers' compensation insurance policy if that employer, as defined in the Workers’ Compensation Law (WCL), meets ANY of the following criteria:

• The employer is required to register with the New York State Department of Labor and pay unemployment insurance for any period in question.
• The employer has a permanent physical location in New York or has employees whose primary work location is in New York.
• The employer is operating in New York under a permit, contract, or license granted by the State of New York, its counties or any municipality as defined under §57 of the WCL.
• The employer is working as a contractor/general contractor/subcontractor on a construction project in New York.
• In the previous year, the employer had employees physically in New York for
• at least 40 hours of every week for a period of longer than two consecutive weeks; or
• had employees present in New York for 25 or more individual days (e.g., five employees working for five days in New York equals 25 individual employee days).

Employees traveling through the New York State not stopping for deliveries, pick-ups, or other work are not deemed to have worked a day in the State. An employer that has reason to know that it will meet these criteria in the current year, even if it has not done so in the prior year, must obtain the required coverage.

If an out-of-state employer with an individual or individuals working in New York State meets any of the above requirements, New York must be listed on "Item 3A" on the Information Page of an employer's workers' compensation insurance policy. This means that the employer is fully covered under the WCL.

Full New York State workers' compensation coverage NOT required, 3C coverage acceptable

Employees of out-of-state employers are not deemed to have worked a day in New York State and out-of-state employers will not be required to provide full, statutory coverage for employees

• attending meetings, seminars, conferences or conventions in New York State infrequently (not more than one per month) or
• traveling through New York State, not stopping for deliveries, pick-ups, or other work.

The employer must have coverage for workers' compensation as required under the laws of its state, and New York must be listed in "Item 3C" on the Information Page of the employer's workers' compensation insurance policy.

If the insurance carrier writing the out-of-state employer's workers' compensation insurance policy is not authorized to write workers' compensation and employers' liability coverage in New York State by the NYS Department of Financial Servicesopens external website, for the 3C coverage to comply with this policy, the insurance carrier must have completed, signed and filed with the Chair, Form C-105.11, Consent to NYS Workers' Compensation Board Jurisdiction for Non-New York Licensed Insurers (3C Coverage).

Insurers Authorized to Use 3C Coverage

Please contact the Board's Bureau of Compliance at (866) 298-7830 if you have any questions regarding these requirements.

Related pages

• Obtaining Insurance
• Workers' Compensation Coverage Requirements for Government Issued Permits, Licenses and Contracts
• Workers' Compensation Coverage for Out-of-State Employers with Employees Who Live In NYS, But Work Elsewhere
• Consent to NYS Workers' Compensation Board Jurisdiction for non-New York Licensed Insurers 3C Coverage (Form C-105.11)
• Out-of-state employers with employees working in NYS - Disability and Paid Family Leave Benefits Coverage Requirements

Out-of-state employers with employees who live in NYS, but work elsewhere

When a business whose only locations are outside New York State has employees who reside in New York State, that business is not required to carry New York State workers' compensation insurance as long as its employees who live in New York State do not do any work in New York State for that business and the employees do not receive, in their homes, any direction and control from that employer.

Related page

• Out-of-State Employers with Employees Who Live In New York State, But Work Elsewhere - Disability and Paid Family Leave Benefits Coverage Requirements

Partnerships, limited liability companies (LLCs) or a limited liability partnerships (LLPs)

Workers’ compensation coverage IS NOT required for partnerships, LLCs, and LLPs that do not have employees. Members and partners are not considered employees for the purposes of obtaining workers' compensation insurance, but may voluntarily cover themselves under a workers' compensation policy.

Workers’ compensation coverage is required for Partnerships, LLCs, LLPs with employees, including part-time employees, borrowed employees, leased employees, family members, and volunteers (WCL §3 Groups 1-14-a).

Related page

• Partnerships, Limited Liability Companies (LLC) & Limited Liability Partnerships (LLP) - Disability and Paid Family Leave Benefits Coverage Requirements

Performing Arts

Employee shall include, for purposes of the Workers' Compensation Law, a professional musician or a person otherwise engaged in the performing arts who performs services as such for a television or radio station or network, a film production, a theatre, hotel, restaurant, night club or similar establishment unless, by written contract, such musician or person is stipulated to be an employee of another employer covered by this chapter.

The party that is listed in the contract as the musician's or person's employer is responsible for providing workers' compensation coverage.

Engaged in the performing arts shall mean performing service in connection with the production of or performance in any artistic endeavor, which requires artistic or technical skill or expertise. WCL §2 [4]

Religious Organizations & Charitable Aid

Employee shall include, for purposes of the Workers' Compensation Law, a professional musician or a person otherwise engaged in the performing arts who performs services as such for a television or radio station or network, a film production, a theatre, hotel, restaurant, night club or similar establishment unless, by written contract, such musician or person is stipulated to be an employee of another employer covered by this chapter.

The party that is listed in the contract as the musician's or person's employer is responsible for providing workers' compensation coverage.

Engaged in the performing arts shall mean performing service in connection with the production of or performance in any artistic endeavor, which requires artistic or technical skill or expertise. WCL §2 [4]

Sole proprietorships

Workers' compensation coverage is not required for a sole proprietor who does not have employees. However, a sole proprietor may voluntarily cover themselves under a workers' compensation policy.

Workers' compensation coverage is required for sole proprietors with employees, including part-time employees, borrowed employees, leased employees, family members, and volunteers (WCL §3 Groups 1-14-a).

Related page

• Sole proprietorships - Disability and Paid Family Leave Benefits Coverage Requirements

Spouse of employer

Workers' Compensation Coverage is required for spouses providing paid or unpaid services to a for-profit business as they are considered employees under the Workers' Compensation Law (regular owner/officer exclusions apply).

Related page

• Spouse of employer - Disability and Paid Family Leave Benefits Coverage Requirements

Students - elementary and high school students; student interns

Student interns are individuals who provide services to gain work experience.

Workers' Compensation coverage is required for student interns (paid or unpaid) who provide services to a for-profit business, a nonprofit organization, or a government agency.

Whether a student intern is considered an employee depends on various factors, including but not limited to the financial benefit to the student intern (such as tuition credit) and the degree of control exercised by the organization. Workers' Compensation Law Judges have explicitly ruled that the training and experience gained by unpaid student interns is of value to the intern and equivalent to wages.

Exception: Student interns (paid or unpaid) who are engaged in a teaching or non-manual capacity in or for a religious, charitable or educational institution (as designated under the IRS tax code) are exempt from mandatory coverage, but can be covered voluntarily.

Manual labor includes but is not limited to such tasks as:

• filing
• carrying materials such as pamphlets, binders, or books
• cleaning such as dusting or vacuuming
• playing musical instruments
• moving furniture
• shoveling snow
• mowing lawns
• construction of any sort

Related page

• Students - elementary and high school students; student interns - Disability and Paid Family Leave Benefits Coverage Requirements

Taxi/livery

Most taxi cab operators are considered employees

A taxi driver, who does not own the taxi, is generally considered an employee. However, workers' compensation is not required if the taxi driver leases the taxi from a person who personally and regularly operates the taxi (40 or more hours per week), the taxi driver is not an employee of the taxi owner unless the taxi owner controls the taxi driver (directs, supervises, or has the power to hire or fire).

For Workers Compensation purposes ONLY, any independent livery base in New York City, Nassau and Westchester Counties must provide coverage for these drivers through membership in the Independent Livery Drivers Benefit Fund or by obtaining a full New York workers' compensation insurance policy. Contact the Independent Livery Driver Benefit Fund to obtain coverage.

Non-exempt office staff and dispatchers must also be covered by a full New York workers' compensation insurance policy. WCL §2[3 & 4], WCL §18-c.

Related page

• Taxi/Livery - Disability and Paid Family Leave Benefits Coverage Requirements

Unions

All for-profit unions in New York State need coverage - no exceptions.

A union that is established as a nonprofit entity and pays salaries and/or stipends to anyone, including its union officers and/or shop stewards, is required to obtain a New York State workers' compensation insurance policy in that union's name.

If a union is established as a nonprofit entity and does not pay salaries and/or stipends to anyone, then that union is exempt from New York State workers' compensation insurance requirements.

Money used solely to offset expenses incurred while performing activities for the nonprofit are not counted as stipends.

Related page

• Unions - Disability and Paid Family Leave Benefits Coverage Requirements

Volunteers

Unpaid and uncompensated volunteers doing charitable work for a nonprofit organization are not considered employees and do not have to be covered by a workers' compensation policy. Please note that compensation includes stipends, room and board, and other "perks" that have monetary value. (Stipends used solely to offset expenses incurred while performing activities for the nonprofit are not counted as stipends.)

For-profit business entities cannot have "volunteers" doing work for the business. These individuals are employees and must be covered.

Volunteer firefighters and volunteer ambulance workers are provided benefits for death or injuries suffered in the line of duty under the Volunteer Firefighters' Benefit Law and Volunteer Ambulance Workers' Benefit Law.

Related page

• Voluntary coverage - Disability and Paid Family Leave Benefits Coverage Requirements