New York State Governor Kathy Hochul has announced that the annual worker compensation assessment rate for employers in New York State shall be reduced by nearly 22 percent as it tackles the savings of more than $191 million in 2025. The rate shall be 7.1 percent of the standard premium or premium equivalent starting January 1, 2025.
This change, therefore, portrays that Governor Hochul is committed to creating an affordable and business-friendly environment for businesses in the whole of New York State.
Affordability is vital to both businesses and employers in general to continue prospering, said Governor Hochul. This tremendous savings increase for New York State’s employers actually increases employment but also strengthens the needed services and community that businesses provide. We are committed to our State’s businesses and their employees so they may receive the benefits they need to care for themselves and their families.
Win for Businesses and Workers
The Workers’ Compensation Board will make decisions on rates for assessments that employers cover to operate the workers’ compensation system. It provides injured or sick workers with required benefits where causes are linked to the workplace, at the same time protecting employers from costly lawsuits.For assistance with workers’ compensation claims, consult a Workers Compensation Lawyer Hamilton.
Clarissa Rodriguez, Chair of the New York State Workers’ Compensation Board, said: “The board is committed to finding the right balance between employer costs and worker benefits.”. “The Board is pleased today, as it is with the Governor, to honor these excellent savings for New York’s employers,” said Rodriguez. “Employer assessments have decreased year after year since benefits to workers increased. We are proud of the work we’re doing to improve the workers’ compensation system for the working New Yorkers and businesses we serve.”
Strategic Management and Ongoing Savings
Assessment rates have decreased over time at a steady rate, and the effectiveness of the workers’ compensation system in terms of financial management has been proven. The 2025 assessment rate stands at 43 percent less than it was in 2019 when the assessment rate was 12.6 percent.
The slower growth is because special funds, funded by employer assessments, run off much more rapidly than formerly as special workers’ compensation liabilities. This sensible move helps New York State retain essential worker protections, reduce pressures on employers at the bottom line, and make New York State a more affordable place for businesses and residents.
This reform fits in with Governor Hochul’s comprehensive agenda of making New York State a more affordable place for businesses and residents alike.
The Impact on Employers
The rate assessed to employers annually is calculated by dividing the total estimated expenditures of the Workers’ Compensation Board by the statewide premium base. Chair Rodriguez sets the assessment rate annually, effective on the first day of the calendar year. That assessment rate is applied by the insurance carriers to their premium or premium equivalent.For assistance with workers’ compensation claims, consult a workers compensation lawyer in Freehold.
The new rate assures more retention of capital to reinvest into businesses, thereby increasing growth and creating more jobs. Business owners will enjoy cost savings in conducting their operations across all various industries through the competitive New York State economy.
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