Determines workers' compensation rates based upon number of hours worked for an employer; requires maintenance of accurate records and provides a penalty for failure to maintain such records.
TITLE OF BILL:
An act to amend the workers' compensation law and the insurance law, in relation to rates for workers' compensation
PURPOSE OR GENERAL IDEA OF BILL:
To change the way workers' compensation premiums are calculated to be based on the hours employees work instead of their salary.
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 of the bill amends the workers' compensation law to provide that premiums paid on behalf of employees shall be determined on the basis of the number of hours worked for the employer. Records currently kept as required by Section 195 or Section 220 of the labor law would be utilized in the rate determination process. Any employer who fails to maintain such accurate records would be guilty of a fraudulent practice.
Section 2 of the bill amends the insurance law to require that premiums for workers' compensation insurance be calculated using their hours of work instead of their salary. Any employer who fails to submit or maintain accurate records would be guilty of a fraudulent practice as defined in Section 114 of the workers' compensation law.
Section 3 provides that this act shall take effect 180 days after it becomes a law.
Utilization of the salaries of employees serves as a competitive disadvantage to those employers who choose to compensate their workers at a higher wage level. In a "low bid" environment, this formula unfairly acts against union contractors who have negotiated terms and conditions favorable to the bargaining unit employees. Calculation of rates based on hours worked would be a more accurate measure of actual risk on the job while eliminating the competitive disadvantage the present arrangement engenders.
PRIOR LEGISLATIVE HISTORY:
2009: S3339 (Duane), Died in Labor 2010: S3339 (Duane), Died in Labor
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
One hundred eighty days after it becomes a law, with provisions.
STATE OF NEW YORK ________________________________________________________________________ 1293 2011-2012 Regular Sessions IN SENATE January 6, 2011 ___________Introduced by Sen. DUANE -- read twice and ordered printed, and when printed to be committed to the Committee on Labor AN ACT to amend the workers' compensation law and the insurance law, in relation to rates for workers' compensation THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 89 of the workers' compensation law is amended by adding two new subdivisions 4 and 5 to read as follows: 4. FOR THE PURPOSE OF EMPLOYMENTS, PREMIUMS IN THE STATE FUND SHALL BE DETERMINED ON THE BASIS OF THE NUMBER OF HOURS WORKED FOR AN EMPLOYER. RECORDS OF HOURS WORKED WHICH ARE MAINTAINED PURSUANT TO SECTION ONE HUNDRED NINETY-FIVE OR TWO HUNDRED TWENTY OF THE LABOR LAW, WHICHEVER IS APPLICABLE, SHALL BE UTILIZED IN SUCH RATE DETERMINATION. 5. ANY EMPLOYER WHO FAILS TO SUBMIT OR MAINTAIN ACCURATE RECORDS REQUIRED PURSUANT TO THIS SECTION SHALL BE GUILTY OF A FRAUDULENT PRAC- TICE PURSUANT TO SECTION NINETY-SIX OF THIS ARTICLE. S 2. Subsection (i) of section 2304 of the insurance law, as relet- tered by chapter 11 of the laws of 2008, is relettered subsection (k) and two new subsections (i) and (j) are added to read as follows: (I) PREMIUM RATES FOR WORKERS' COMPENSATION INSURANCE FOR EMPLOYMENTS SHALL BE BASED ON THE NUMBER OF HOURS WORKED FOR AN EMPLOYER. RECORDS OF HOURS WORKED WHICH ARE MAINTAINED PURSUANT TO SECTION ONE HUNDRED NINE- TY-FIVE OR SECTION TWO HUNDRED TWENTY OF THE LABOR LAW, WHICHEVER IS APPLICABLE, SHALL BE UTILIZED IN SUCH RATE DETERMINATION. (J) ANY EMPLOYER WHO FAILS TO SUBMIT OR MAINTAIN ACCURATE RECORDS REQUIRED IN ACCORDANCE WITH THIS SECTION SHALL BE GUILTY OF A FRAUDULENT PRACTICE PURSUANT TO SECTION ONE HUNDRED FOURTEEN OF THE WORKERS' COMPENSATION LAW, OR OF AGGRAVATED INSURANCE FRAUD AS DEFINED IN SECTION 176.35 OF THE PENAL LAW. S 3. This act shall take effect on the one hundred eightieth day after it shall have become a law; provided, however, that effective immediate-EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD01193-01-1 S. 1293 2
ly, the addition, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effective date are authorized and directed to be made and completed by the chairperson of the workers' compensation board and the superintendent of insurance on or before such effective date.