Workers comp coverage required in New York
All employers with one or more employees must carry workers' compensation insurance. Verified 2026-05-09.
Who must carry workers comp in New York?
New York workers compensation coverage is required All employers with one or more employees must carry workers' compensation insurance.
The threshold language matters: states write the rule slightly differently. Some count any worker, some count only W-2 employees, some count owners separately, some have industry-specific exemptions (agriculture, domestic service, casual labor). For a New York employer with a non-trivial workforce, the safest default is: assume coverage is required and confirm with the state department of insurance or a local agent.
How the threshold interacts with 1099s and subs
Individuals classified as 1099 contractors are often deemed employees for workers' compensation purposes unless they meet strict independent contractor criteria. A general contractor is liable for workers' compensation benefits to employees of an uninsured subcontractor.
Penalty for going without
Penalties include fines up to $5,000 for every 10-day period of non-compliance, stop-work orders, and potential criminal charges. The financial penalty is usually a fraction of the human cost: an injured employee at an uncovered employer can sue directly under tort law instead of being limited to the workers comp benefit, exposing the owner to lost-wage damages, pain and suffering, and punitive damages without the corporate veil.
Related reading
FAQs
Who has to carry workers comp in New York?
All employers with one or more employees must carry workers' compensation insurance.
When does the requirement kick in for a new New York employer?
The clock starts on the first day the first qualifying employee is on the books. New York does not have a grace period for new employers, so a policy needs to be bound on or before the first hire date. Some agents can issue same-day binders for low-risk class codes.
What is the penalty for not having workers comp in New York?
Penalties include fines up to $5,000 for every 10-day period of non-compliance, stop-work orders, and potential criminal charges.
Do 1099 contractors trigger the coverage requirement in New York?
Individuals classified as 1099 contractors are often deemed employees for workers' compensation purposes unless they meet strict independent contractor criteria.
Are subcontractors counted toward the threshold in New York?
A general contractor is liable for workers' compensation benefits to employees of an uninsured subcontractor.
What happens if I am audited and found non-compliant in New York?
New York typically issues a stop-work order, assesses back premium for the period of non-coverage, and adds penalties on top. Specifically: Penalties include fines up to $5,000 for every 10-day period of non-compliance, stop-work orders, and potential criminal charges. Severe or repeat violations can lead to criminal charges and personal liability for the business owner, separate from the corporate veil.