Governor Cuomo announced New York’s workers’ comp system would reduce assessment costs to employers by 26 percent in 2014, saving businesses and local governments $300 million in annual expenses. The Business Relief Act cuts the assessment to employers from 18.8 percent to 13.8 percent, the largest reduction since 1998, and provides a one-time workers’ compensation assessment savings to all self-insured employers of approximately $500 million.
Signed by the Governor as part of the 2013-14 budget, the Business Relief Act achieves $800 million in savings by reducing the cost to operate the workers’ compensation system, otherwise known as assessments, in two ways. Closing the Re-Opened Case Fund initially saves all New York State employers a $300 million annual assessment. In recent years, the cost of the Re-Opened Case Fund has grown exponentially while failing to serve its originally intended purpose. Closing the fund also reduces unnecessary litigation in the workers’ compensation system, another cost savings for employers.
Heather C. Briccetti, Esq., president & CEO of The Business Council of New York State, said, “The Business Council welcomes this significant reduction in Workers’ Comp Board assessments and the new simplified assessment methodology. This fulfillment of part of the Governor’s 2013 reform package is an important first step in the continuing effort to make New York’s comp system more efficient, less expensive and less of an impediment to economic growth in the State. We look forward to working with the Board in continuing to implement reforms meant to deliver care to injured workers and bend the cost curve for New York’s employers.”