The rate that employers pay to the state
workers’ compensation system will drop
again in 2015, resulting in savings to all
employers totaling $45 million, according to
Gov. Andrew M. Cuomo.
The savings are a direct result of the 2013
Business Relief Act, which Cuomo signed
into law last year. The governor said the assessment
rate for employers has been cut by
a total of 30 percent over the last two years.
“Reducing the cost of doing business in
New York has been a top priority for this
administration and I’m proud to announce
that our reforms to the Workers’ Compensation
System have lowered rates for the second
straight year,” Cuomo said.
“This is one more
way we’re improving the economic climate in
New York and making this state a place where
businesses can grow, thrive and create jobs.”
He said the new assessment methodology
and other efficiencies implemented in 2014
resulted in $170 million in administrative
savings, of which $18 million directly benefits
New York’s public employers, like municipalities
and school districts. The savings has been
applied to 2015, resulting in the assessment
rate falling to 13.2 percent from 13.8 percent,
the second consecutive annual decline.
According to the governor’s office, the
Business Relief Act standardized and corrected
the previously disjointed and antiquated
assessment process. Now, all employers are
charged with the same methodology, leading
to a lower assessment rate for all New York’s
employers.
The Workers’ Compensation Board is continuing
to enforce the legal requirement for
employers to carry workers’ compensation
insurance expands the pool of insureds.
Officials said both the number of people
working in New York state and the amount of
employees’ total wages earned increased over
the last year, contributing to the lower rate.
The Workers’ Compensation Board is in the
midst of a comprehensive “business process
re-engineering” to re-imagine the workers’
compensation system, state officials said.
This has identified initial projects that will recreate
a system that more effectively serves
the needs of injured workers and employers,
resulting in further savings for public and
private employers in the time to come.