2026 State of the State Proposal: Fighting Workers' Compensation Fraud

Workers' compensation fraud is a pernicious criminal activity that increases costs for businesses and insurers, affecting employers' decisions when it comes to other costs like employee wages and benefits. The NYS Workers' Compensation Board provides annual funding to the Workers' Compensation Fraud Inspector General (WCFIG) to investigate fraud. However, WCFIG's referrals to law enforcement often go unprosecuted because district attorneys lack the funding and staff to establish dedicated workers' compensation fraud units.

To combat instances of workers' compensation fraud, Governor Hochul will advance legislation that allows the Workers' Compensation Board to use employer assessments to administer a grant program for district attorneys to establish and staff dedicated workers' compensation fraud units. This funding will ensure they have the necessary resources to investigate and prosecute these crimes, ultimately protecting honest workers and businesses, and helping to reduce costs for businesses across New York State.