03 Dec Out-of-State Employee Workers’ Compensation
Do you have Out of State Employees? Do you know how to cover your responsibility for workers’ compensation?
Out-of-State Employers with Employees Working in New York State
The following is the Board’s Out-of-State Employers policy that should be reviewed by insurance carriers, agents, brokers and out-of-state employers.
When Full NY Workers’ Compensation Coverage is Required
Any out-of-state employer who has one or more individuals who work in New York State must have a full NYS workers’ compensation insurance policy if that employer (as defined in the WCL) meets any of the following:
• The employer is required to register with the Department of Labor and must pay Unemployment Insurance for any period in question.
• The employer has a permanent, physical location in New York or employs workers whose primary work location is in New York.
• The employer has been granted by the State of New York, its counties or any municipalities a permit, contract or license to operate in New York, as outlined by Sect. 57 of the Workers’ Compensation Law.
• The employer is working as a contractor, a general contractor or a subcontractor on a construction project in New York.
• The employer has had employees in New York in the previous year for at least 40 hours of every week for a period of longer than two consecutive weeks OR had one or more employees physically present in New York for a total of 25 or more individual days.
Any employees who have traveled through the State but has not stopped for any deliveries, pick-ups or other work are not considered to have worked a day in New York. If an employee knows it will meet these criteria in the current year, it must obtain the required coverage.
If an out-of-state employer with one or more employees who work in New York State meets any of the above criteria, it is imperative that New York be listed on Item 3A on the Information Page of an employer’s workers’ compensation insurance policy. This ensures an employer is fully covered under the NY Workers’ Compensation Law.
Full New York Workers’ Compensation Coverage Not Required, 3c Coverage Acceptable
A full, statutory NYS workers’ compensation insurance policy is not required when out-of-state employers send employees into New York for work purposes. However, the employer must have coverage for workers’ compensation under the laws of the employer’s 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 by the NYS Insurance Department to write workers’ compensation and employers’ liability coverage in New York, for the 3C coverage to comply with this policy, the insurance carrier must have completed, signed and filed the Statement of Compliance With Workers’ Compensation Law with the Chair (Form C-105.11).
If an out-of-state employer has a new workers’ compensation insurance policy that was issued after 2/1/2011 by a private insurance carrier not licensed in New York and listing New York under 3C of that policy, the employer will not qualify for the specific exemptions outlined in the Out-of-State Employers Policy statement. However, if the carrier completes, signs and files the Statement of Compliance With Workers’ Compensation Law with the Chair (Form C-105.11), then the employer will qualify.
For more information, contact a Colstan & Associates agent. You may obtain a workers’ compensation policy as well as a disability benefits insurance policy from the New York State Insurance Fund. Call us at 631-266-2800 or click https://colstan.com/