Workers’ Compensation Coverage Requirements in NY

The short answer

According to the New York State Workers’ Compensation Board, virtually every for-profit employer in the state must carry workers’ comp for its employees. There is no minimum headcount and no minimum number of hours. A restaurant with one part-time dishwasher, a salon with one assistant, and a contractor who brings on a helper for a two-week job are all required to have a policy in force before that person starts work.

What are Workers’ Compensation Coverage Requirements in NY

• Full-time and part-time employees. Hours don’t matter for most businesses. A worker on your payroll for eight hours a week needs coverage just like a 40-hour employee.
• Seasonal, temporary, and day workers. Coverage applies even if the job lasts a few days.
• Family members who work in the business. A spouse, child, or relative who works for the company is generally treated like any other worker.
• Borrowed or leased workers. Someone else may be paying the worker, but you still need to confirm who is covering them.
• “Independent contractors” who don’t really qualify. New York applies strict tests, especially in construction and trucking. If a 1099 worker fails the test, the Board treats them as your employee. See our guide on employee vs. independent contractor in New York.
• Uninsured subcontractors’ workers. Under New York law, a contractor can be held responsible for the injured employees of a subcontractor that didn’t carry its own coverage. Always collect a valid certificate before a sub starts work.
• Household employees who work 40 or more hours a week. Nannies, housekeepers, and home aides who work at least 40 hours per week for the same household must be covered. Hours when the employer requires the worker to be present count toward the 40.

Who is exempt from workers’ comp in NY?

• Sole proprietors with no employees. A sole proprietor working alone isn’t required to cover themselves but can choose to.
• Partnerships and LLCs with no employees. Partners and LLC members aren’t required to cover themselves if nobody else works for the business.
• One- or two-person corporations. Coverage isn’t required if one or two people own all the stock, hold all the corporate offices, and the corporation has no other workers of any kind. That includes part-timers, day labor, family helpers, volunteers, and uninsured subcontractors.

Exempt businesses that need to prove it for a permit, license, or government contract generally file a free CE-200 Certificate of Attestation of Exemption with the Workers’ Compensation Board. We cover the details in Workers’ Comp for Sole Proprietors and Business Owners in New York.

Don’t forget DBL and Paid Family Leave

Workers’ comp covers injuries and illnesses caused by work. New York also requires a separate policy for injuries and illnesses that happen off the job, plus paid time off for family care. This is called Disability Benefits Law (DBL) and Paid Family Leave (PFL) coverage.

Generally, an employer that has had one or more employees on each of at least 30 days in a calendar year must provide DBL and PFL. Many business owners buy workers’ comp and don’t realize DBL/PFL is a separate requirement until the Board sends a penalty notice. Learn more on our New York DBL and Paid Family Leave page.

Out-of-state employers with New York workers

If your business is based in New Jersey, Connecticut, or elsewhere but you send workers into New York, check your policy before the job starts. New York generally expects New York to be listed as a covered state on your policy. The “other states” section alone may not satisfy the Board or the general contractor you’re working for.

What happens if you’re required and don’t have coverage

The Board actively looks for uninsured employers by cross-checking payroll, unemployment, and tax records. Consequences include:

• Penalties of up to $2,000 for every 10-day period without coverage
• Stop-work orders that shut down all business operations until coverage is in place
• Criminal charges. Failing to cover more than five employees is a class E felony.
• Personal liability for the full cost of any injured worker’s medical bills and lost wages

For a full breakdown, read New York Workers’ Compensation Penalties for Employers.

Quick checklist

• Do you have anyone on payroll, even part-time? You need workers’ comp.
• Have you had an employee on 30 or more days this year? You need DBL and PFL too.
• Do you pay 1099 workers? Check whether they pass New York’s test.
• Do you hire subcontractors? Collect their certificates before work starts.
• Are you a one- or two-owner corporation with no other workers? You may be exempt. File a CE-200 if you need proof.

Frequently asked questions

Do I need workers’ comp in New York if I only have one part-time employee?

Yes. New York has no minimum number of employees or hours for most businesses. One part-time worker triggers the requirement.

Is my spouse or child covered if they help in the business?

Generally, yes. Family members who work in the business are usually treated like other workers, and their presence can also disqualify a one- or two-person corporation from the owner exemption.

Does my homeowners policy cover my nanny or housekeeper?

No. If a household worker works 40 or more hours a week for you, you need a separate workers’ comp policy. A homeowners policy does not satisfy the requirement.

Is DBL the same as workers’ comp?

No. Workers’ comp covers work-related injuries. DBL and Paid Family Leave cover off-the-job disabilities and family leave. Most New York employers need both.

This article is general information, not legal advice. Coverage requirements can change; confirm your situation with the New York State Workers’ Compensation Board or a licensed professional. Weinsurexyz is a division of Liability Advisors Inc., NY License #1810943.