Improvements Will Save New York State Employers $800 Million Next Year and $300 Million Annually
Governor Andrew M. Cuomo today detailed a series of measures that reduce the cost to employers under the State’s workers’ compensation system by 26 percent in 2014, saving businesses and local governments $300 million in annual expenses. The Business Relief Act cuts the assessment to employers from 18.8 percent to 13.8 percent, the largest reduction since 1998, and provides a one-time workers’ compensation assessment savings to all self-insured employers of approximately $500 million.
“The improvements in the workers’ compensation system will deliver major savings for businesses across the state, giving them the opportunity to use that extra money to make investments and create jobs in their communities,” Governor Cuomo said. “With the cost reductions in the workers’ compensation system, we are saving New York employers $800 million in 2013 and $300 million for each year moving forward – a tremendous savings that will be felt immediately by businesses, municipalities and school districts statewide. As we continue to make state government more efficient and take actions to make doing business in New York easier, we are also spearheading a comprehensive review of the current workers’ compensation system so that we can continue to find ways to deliver for our employers.”
Signed by the Governor as part of the 2013-14 budget, the Business Relief Act achieves $800 million in savings by reducing the cost to operate the workers’ compensation system, otherwise known as assessments, in two ways. Closing the Re-Opened Case Fund initially saves all New York State employers a $300 million annual assessment. In recent years, the cost of the Re-Opened Case Fund has grown exponentially while failing to serve its originally intended purpose. Closing the fund also reduces unnecessary litigation in the workers’ compensation system, another cost savings for employers.
