Is Workers’ Compensation Mandatory in New York?
All New York employers are required to provide workers' compensation coverage for employee injuries that may occur due to work-related activities. Any individual who is paid to do a job is considered an employee of the company, regardless if they are day laborers, leased or borrowed employees, part-time employees, unpaid volunteers, family members and most subcontractors.
Independent contractors are the exception to the New York workers' compensation law. The New York Workers' Compensation Board defines the criteria to identify as an independent contractor.
Self-employed or business sole proprietors are not required to purchase workers' compensation insurance in New York. However, it's recommended to do so. Should the business owner get injured on the job, workers' comp will cover medical bills and lost wages while unable to work.
The New York workers' compensation laws also require employers to post a notice in the workplace that indicates they have workers' comp coverage. The notice should state the insurance carrier's name, address, phone number, and policy number.