Employers Obligations

The New York Workers’ Compensation Act is compulsory for all private and public employers. Although there are exceptions, most employers of at least one person are required to carry coverage for their employees. Individual proprietors and partners themselves are not automatically covered; they may elect to be covered. The same is true for partners of Limited Liability Partnerships and Limited Liability Companies.

Officers of corporations are considered employees of the corporation; they are automatically covered. If a corporation with one or two executive officers has employees requiring coverage, either one, or both, of the officers may elect to be excluded from coverage, provided the one or both officers own all of the issued and outstanding stock and hold all executive officer positions in the corporation.

Employers in New York State are required to meet their workers’ compensation insurance obligation by one of three ways:

• By insuring with the New York State Insurance Fund (NYSIF). NYSIF was created to provide workers’ compensation insurance as an alternative to options two and three below. NYSIF is the largest carrier in New York State.
• By insuring with a private insurance carrier.
• By self-insuring, or as a member of a self-insured trust. Employers who qualify to self-insure must follow the express requirements of the law and meet requisite financial standards.

Employers must demonstrate compliance with the WC Law by prominently posting form C105 Notice of Compliance at each Employer's place of business.