Workers’ Comp benefits will be increased

Benefits for injured workers will increase for the first time in more than a decade while employer costs decline by 10 to 15 percent because of an agreement to reform the State’s Workers’ Compensation system struck in late February between Governor Eliot Spitzer and Albany lawmakers.
“Reforming New York’s broken workers’ compensation system is a major achievement,” said Assemblymember Audrey Pheffer. “We have one of the most expensive systems in the nation that gives low benefits and requires high premiums. This agreement helps injured workers better make ends meet without forcing small businesses to close their doors.”
Under the new agreement, the maximum weekly benefit for injured workers will increase from $400 to $600 over the first three years. During the fourth year, the benefit will peak at two-thirds of the average weekly wage in New York. Once the maximum benefit reaches two-thirds of the average weekly wage, it will be indexed annually.
The minimum weekly benefit will increase from $40 to $100.
Measures expected to provide hundreds of millions of dollars in cost savings include: setting the maximum number of years that some claimants can receive cash benefits; helping workers get prompt medical treatment and return to gainful employment; creating strong anti-fraud measures and higher criminal penalties for violators; and closing a loophole used by some insurance carriers to avoid paying claims.
“Reform of the State’s Workers’ Compensation system has been one of the most contentious issues facing our State Government,” said Senate Democratic Leader Malcolm A. Smith.
“The fact that both the Business Council of New York State and the AFL-CIO are supportive of the Governor’s proposal speaks volumes about the merits of the agreement. Once again message delivered, message received, action taken.”
Some initial reforms include gathering data on system costs for more transparency; designing an expedited hearing process; designing new fact-based medical guidelines and designing treatment guidelines and training for law judges.
“For the first time in more than a decade, workers coming into the system will see benefits raised and businesses will be able to keep insurance costs down,” said Pheffer. “It benefits everyone, including taxpayers, and strengthens New York’s economic competitiveness.”