O’Connor Law Applauds Assessment Rate Reduction Providing Relief to Local Businesses
FOR IMMEDIATE RELEASE
NEW YORK, NY, December 2023 – New York Governor Kathy Hochul recently announced a 6% reduction in the state’s annual workers’ compensation assessment rate for employers. The rate decrease takes effect January 1, 2024, and will save New York employers approximately $50 million.
“This assessment rate reduction will put real money back into the pockets of New York employers and provide meaningful relief from regulatory costs,” said Mary Ellen O’Connor, owner and workers’ compensation lawyer at O’Connor Law. “At a time of economic uncertainty, every dollar counts for local businesses struggling with inflation and staffing challenges.”
Over 400,000 NY Businesses Benefit
The assessment rate cut will reduce expenses for all workers’ compensation policyholders statewide, especially aiding over 400,000 small businesses across New York.
Lower assessment costs help free up budgets to invest in growth, hiring, and resources that support employee health and safety.
“Small and mid-sized companies are the backbone of the New York economy,” O’Connor added. “This assessment relief will provide tangible help to the local employers driving job creation and vibrant communities across the state.”
How the Workers’ Comp Assessment Rate is Calculated
New York employers pay an annual assessment that funds the state’s workers’ compensation system. This system provides medical, wage, and rehabilitation benefits to workers injured on the job while also protecting employers from lawsuits.
Each November, the Chair of the New York State Workers’ Compensation Board calculates the assessment rate for the upcoming year based on two key factors:
- The Board’s Operating Budget — The Board’s budget needs and expenses for overseeing the workers’ comp system statewide.
- Estimated Premiums — An estimate of all premiums that will be collected by workers’ comp insurers statewide.
The assessment rate is determined by dividing the Board’s total budget by the estimated premium base. Insurers then apply this percentage rate to every workers’ comp policy they issue in New York.
Continued Efforts to Control System Costs Needed
“While this assessment rate reduction is welcome news, more work remains to bring down the underlying costs driving New York’s high workers’ compensation insurance rates relative to other states,” cautioned O’Connor. “The legislature must make reforms that tackle waste and abuse while focusing benefits on workers truly injured on the job.”
As partners assisting local employers navigate New York’s workers’ compensation system, O’Connor Law will continue advocating for changes that balance fair benefits for injured workers while preventing needless costs that hurt job creators.
What This Means for NY Employees
While employers will benefit from lower costs, the assessment rate reduction does not impact benefits paid to injured workers.
“This move rightly keeps the focus on maintaining fair compensation for employees hurt on the job,” said O’Connor stated. “Workers will continue receiving the excellent medical care and wage replacement benefits they deserve under the workers’ compensation system.”
The rate change simply helps lower overhead costs for employers. Injured workers will notice no difference in the services and payments they are entitled to if injured at work.
How Workers’ Compensation Attorneys Can Help Injured Employees
For employees injured on the job, contacting an experienced workers’ compensation attorney is crucial for protecting their rights and securing the maximum benefits allowed under the law.
O’Connor Law has been providing injured workers in New York with dedicated legal representation for years.
Their lawyers can help injured workers:
- File claims properly and ensure full benefits under the law.
- Dispute any unfair denials of medical treatment or lost wage payments.
- Pursue lump-sum settlements in appropriate cases.
- Appeal any improper decisions by the Board.
- Answer questions and advocate at every stage of the process.
While the assessment rate cut does not reduce worker benefits or protections, having O’Connor Law’s experienced team makes sure injured employees maximize their compensation and can focus on healing and recovery.
About O’Connor Law
With over 85 years of combined experience, the workers’ compensation attorneys at O’Connor Law PLLC have helped more than 10,000 injured employees in New York get the benefits and compensation they deserve.
They understand that a work-related injury or illness can be life-changing, and we have an in-depth knowledge of New York’s workers’ compensation system. With offices in Larchmont and Bronx, NY, their dedicated lawyers will handle your claim from start to finish, advising you at every stage and fighting to get you the maximum compensation allowed under the law.