New York Workers' Compensation Reform Deal Announced by Governor Eliot Spitzer

At a 1:00pm news conference today, New York Governor Eliot Spitzer, Assembly Speaker Shelly Silver and Senate Majority Leader Joe Bruno announced a comprehensive workers' compensation reform package, breaking an almost 12 year legislative dead lock.  Listen to the audio announcement here.

Like any hard fought compromise, neither business nor labor got everything they wanted.  However, both injured workers and business will see significant benefits.  Injured workers will see a rapid increase in the maximum weekly benefit, while employers should see a 10-15% decrease in premiums

The New York Workers' Compensation Alliance, after months of hard work,  was particularly pleased to see the adoption of many of our legislative proposals.  Specifically, the following proposals made by the Workers' Compensation Alliance are part of the new reform package:

  • The maximum weekly benefit will increase to $500 immediately, then to 2/3 of the state average weekly wage by 2010 and will be indexed and adjusted automatically in the future;
  • Increases the minimum weekly benefit to $100;
  • Increases the dollar amount for pre-approval of medical services to $1000;
  • Provides lifetime medical coverage for workers with permanent partial disabilities;
  • Mandates lump sum settlement (Section 32) offers for permanent partial disabilities;
  • Provides workers with meaningful vocational rehabilitation and light duty programs;
  • Creates a "Rocket Docket"  program to speed resolution of claims;
  • Abolishes the New York Compensation Rating Board.

Of course, the New York Workers' Compensation Alliance is deeply concerned that the proposed caps on cash benefits for permanent partial disabilities will take away the much needed economic safety net for those workers whose partial disabilities effectively preclude them from competitive employment. 

However, the bill does provide such claimants the right to petition at any time for a reclassification as a permanent total industrial disability, thereby providing lifetime cash benefits.  Once the actual bill language is released later today, we will be analyzing what additional safety net protections exist for those with permanent partial disabilities and reporting our position.  Frequently, the "devil is in the details".   Let's hope the details in this bill are angelic!

Any one with questions or concerns regarding this bill may call Workers' Compensation Alliance Co- Chairs Troy Rosasco at 631-582-3700 x123 or John Sciortino at 585-475-1100.

 

Written By:Old Jim On February 27, 2007 7:06 PM

Well, it's about time. It's very nice to see labor and business agreeing on something without getting their butts kicked. Poor Pataki, never understood this.

Hopefully, this agreement will not be like the Comptroller issue and the parties can actually work things through.

What happens to injured workers who cannot find jobs or succeed at vocational rehab??? Will the State OK welfare?? Will US be OK with medical???

Written By:Troy Rosasco On February 27, 2007 11:39 PM

We will have to wait and see, Old Jim. The WCA will be fighting for you.

Written By:Dobey On March 1, 2007 10:24 AM

Im very concerned being classified with PPD. I have never had anything approved by the State Insurance Fund without going to court. Even though I won my case for total diability from SS workers comp only has me as PPD. Looks like im gunna be in a fight for my life. Kinda feels like the most needing were sold out in this deal.

Written By:Marty On March 12, 2007 10:45 AM

lets be honest Troy, the WCA, AFL-CIO and Spitzer sold out the PPD people on March 5th for there own political agenda's. Remember the articles on March 1st., Feb. 28th and before. If I'm correct they put it as they will never accept a cap on PPD workers. Like I said "SOLD OUT"

Written By:maureen every On April 23, 2007 9:30 PM

It would have been nice to see a cost of living increase added for current recipients. Property taxes, gasoline, heating cost and the list goes on but your benefit will always be the same. Albany should not be looking for a cost of living raise for themselves

Written By:Zlad On February 20, 2008 9:31 AM

The NYS WC system is so corrupt, with judges getting insurance money kickbacks and out-to-lunch defendant lawyers dominating the field, that no amount of tweaking from Albany will fix it. The entire thing should be scrapped so that injured employees can sue their employers directly for harm done in the workplace. At the turn of the last century, when the WC system was put into place, the personal injury field was underdeveloped. These days this is not the case. Workers would do better to have the right to sue their employer/former employers directly. As it is, the WC system literally provides employers a pound of flesh at a steep discount, providing almost no incentive to invest in worker safety when the WC laws make direct lawsuits almost always impossible.