Fighting Workers' Compensation Fraud
Workers' compensation fraud is a criminal activity that increases costs for businesses and insurers, affecting employers' decisions on other costs like employee wages and benefits.
To combat instances of workers' compensation fraud, Governor Kathy Hochul has signed new legislation opens external website that allows the NYS 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.
Currently, 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 focus on workers' compensation fraud. This new anti-fraud grant program, which will be implemented in 2027, will change that, and help make the workers' compensation system better and more affordable for all stakeholders.
Workers' compensation fraud undermines the integrity of the system, and this new anti-fraud grant program will provide a deterrence to all stakeholders to refrain from engaging in any type of workers' compensation fraud.
Learn more
- Read Governor Hochul's press release: (5/28/26): Governor Hochul Secures Protections for Workers as Part of FY27 Budget opens external website
- Read Governor Hochul's press release: (1/13/26): Governor Hochul Unveils New Initiatives to Strengthen New York's Health Care System, Drive Down Cost of Care PDF
- To learn more about the 2026 State of the State, see this year's State of the State bookPDF. You can also watch a replay opens external website of Governor Hochul's State of the State address.
Fraud tips / complaints
To report possible fraud or misconduct within the workers' compensation system, see the Offices of the Inspector General's Workers' Comp Complaint Form webpage to access an online form or view instructions on how to report possible fraud via fax, phone, or by regular mail.