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New York State Governor Pataki Signs Workers Comp Reform

Governor George E. Pataki today signed into law landmark reforms that makes historic reforms in New York State's workers' compensation system that will reduce employer costs and improve workplace safety.

"Today marks a turning point in New York State's comeback," Governor Pataki said. "These historic reforms will free employers to invest in their employees and their businesses by reducing workers' compensation costs, and will help injured workers by ensuring that their jobs sites are the safest they can be."

"Like the record income tax cuts we enacted in 1995, these sweeping reforms in workers' compensation prove that New York can be a national leader in making the changes necessary to promote growth and create jobs," the Governor said. "This new law makes the Empire State a safer place to work, a better place to run a business, and a better place to raise a family and build a life -- and that's good news for all New Yorkers."

The changes contained in the New York State Employment, Safety and Security Act will ultimately reduce workers' compensation costs for employers by an average 25 percent -- or about $1 billion -- while improving workplace safety in the Empire State. The new law attacks high costs by repealing Dole v. Dow, a court-imposed standard that permitted New York employers to be sued by manufacturers of injury-causing equipment, except for only the gravest of injuries . It improves workplace safety by creating a new "safety first" mandate that requires all employers with poor safety records to institute safety programs, or else face tough new sanctions. And it reduces costs and ensures excellent medical care by expanding the use of managed care to treat workplace injuries.

The New York Employment, Safety and Security Act also fights fraud by making the crime of workers' compensation fraud a felony, punishable by jail time, and it ensures that claims filed by injured workers will be handled more quickly by reducing delays caused by needless paperwork.

 

 

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