03 Dec Out-of-State Employee Workers’ Compensation
Out-of-State Employee Workers’ Compensation: What You Need to Know
Do you have employees working in New York while your business is based out of state? Knowing your workers’ compensation
Responsibilities are crucial to stay compliant and avoid penalties.
When Do You Need Full New York Workers’ Compensation Coverage?
Out-of-state employers must have full New York workers’ compensation coverage if any of the following apply:
You must register with the Department of Labor and pay Unemployment Insurance.
You operate a physical business location in New York or employ people whose main worksite is in New York.
You have a permit, license, or contract to operate in New York.
You work as a contractor, general contractor, or subcontractor on a New York construction project.
Employees worked in New York 40+ hours weekly for over two consecutive weeks, or 25+ total days in the past year.
When Full Coverage Isn’t Required: 3C Coverage Rules
Not all out-of-state employers need full NY coverage. If your employees only work in New York temporarily, you can often use 3C coverage.
3C Coverage Rules:
You must hold valid workers’ compensation insurance in your home state.
You must list New York under 3C on your policy.
If your insurer isn’t licensed in New York, they must file Form C-105.11 with the New York Board.
If you employ one or more people working in New York State, you must carry a full NY workers’ compensation insurance policy when you meet any of the following conditions:
You register with the Department of Labor and pay Unemployment Insurance during the relevant period.
You operate a permanent, physical location in New York or employ workers whose main job site is in New York.
You hold a permit, contract, or license from New York State, its counties, or municipalities to operate, as outlined in Section 57 of the Workers’ Compensation Law.
You work as a contractor, general contractor, or subcontractor on a construction project in New York.
You have had employees physically working in New York for at least 40 hours each week over two consecutive weeks, or for a total of 25 or more days in the previous year.
Employees who merely pass through New York without stopping for work purposes do not count as working in the state.
If you expect to meet these criteria this year, you must secure the required coverage before any work begins.
To stay compliant, list New York under Item 3A on the Information Page of your workers’ compensation policy. Doing so guarantees full protection under New York’s Workers’ Compensation Law.
