NFIB released the following statement by State Director Ashley Ranslow in reaction to Governor Kathy Hochul’s vetoes of A.1118/S.768, A.2020-A/S.6373-B, and A.7178-A/S.8271-A, bills that would have substantially increased workers’ compensation premiums for small businesses:
“On behalf of New York’s small businesses, NFIB applauds the Governor’s decision to veto bills that would have dramatically increased costs for small businesses across the state. New York State rightfully focused on cost containment in the workers’ compensation system in 2017, and these bills would not only have erased those savings but would have added millions to the workers’ comp system, driving premiums up substantially. This was the right decision as New York’s economy still has not fully recovered from the pandemic, and Main Street is contending with unrelenting financial pressures, from inflation to rising energy bills. Now, more than ever, small businesses must be protected from any additional costs or burdens. We thank Governor Hochul for listening to the concerns of small businesses and vetoing these troublesome bills.”
SUMMARY ASSESSMENTS OF THE THREE VETOED BILLS:
- A.1118 (Bronson)/S.768 (Gounardes) redefines temporary total disability, marking a fundamental shift in the definition of disability and how wage replacement amounts are determined in New York State. This bill upends case law by allowing for unlimited awards at the temporary total rate for employees with mild or moderate partial disabilities. Under existing law, when a doctor finds that an employee has partially recovered from an injury, that employee must either seek out work that is commensurate with their degree of disability or risk losing their indemnity benefits. As passed, this bill would automatically qualify injured employees to receive benefits at the higher disability rate if it was determined they could not return to their pre- injury employment or a modified position. This will lead to significant and extremely damaging cost increases for the workers’ compensation system. Many businesses, especially small businesses, do not have the financial or practical ability to accommodate light-duty work, and long-standing workers’ compensation law recognized that important dynamic. This bill abandons the long-held tenets of workers’ compensation law.
- A.2020-A (Reyes)/S.8373-B (Savino) expands the statutory carve-out that applies to police officers, firefighters, and emergency medical technicians who filed a claim for mental injury premised upon extraordinary work-related stress to include all employees. This bill will permit all employees who allege extraordinary work-related stress to file a mental stress claim irrespective of a work-related emergency. Law Judges will determine what qualifies as “extraordinary,” a standard that is not defined by statute, which will result in extensive litigation. Additionally, the bill would transfer the cost of treatment and disability for psychological conditions that are not currently considered work-related to the workers’ compensation system. The cost to the system would be substantial.
- A.7178-A (Joyner)/S.8271-A (Sanders) would increase the minimum amount of compensation from $150 to not less than 1/5 of Statewide Average Weekly Wage (SAWW) or employee’s full wages if equal to or less than 1/5 of SAWW. The current minimum weekly indemnity rate for employees who earn more than $150 per week is $150. If enacted, this bill would grant employees who sustain accidents after June 30, 2022, to almost double the current minimum indemnity rate of $150 per week (weekly indemnity benefits would increase to no less than $337.64, which is 1/5 of the current SAWW of $1,688.19). Employees with wages less than or, equal to $337.64 per week would receive full salaries. The impact of this legislation would be most felt by businesses with part-time, seasonal, or lower-wage employees, and may deter employees from returning to work, exacerbating the labor shortage and keeping New York’s unemployment rate higher than the national average.
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For nearly 80 years, NFIB has been advocating on behalf of America’s small and independent business owners, both in Washington, D.C., and in all 50 state capitals. NFIB is nonprofit, nonpartisan, and member-driven. Since our founding in 1943, NFIB has been exclusively dedicated to small and independent businesses, and remains so today. For more information, please visit nfib.com.
