Some recent revisions in the New York State filings have provided welcomed relief in the pricing structure of NY State Workers Compensation as it relates specifically to the construction industry. The revision effects the New York State Territorial Differential, which was a surcharge enacted on October 1st,1999 under the Construction Employment Payroll Limitation Law (S7744/A11294). The purpose of this law was to provide a more equitable distribution of premium between high wage paying and low wage paying employers in the construction industry. In my opinion this Law was a gift to the Construction Trade Unions which complained bitterly for years that their workers comp costs where much higher because they paid their highly skilled people more, but their actual risk of injury was less. This law was an attempt to make them more competitive with non-union construction labor.
This same law created three construction employment geographic territories:
Territory 1 - Counties of The Bronx, Kings, New York, Queens, and Richmond
( Prior to October 1st 2007 applicable Territorial Surcharge was 40% over the base compensation premium)
( After October 1st 2007 the applicable Territorial Surcharge has been reduced to 8.5%
Territory 2 - Counties of Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk, and Westchester
( Prior to October 1st 2007 Applicable Territorial Surcharge 30% over the base compensation premium)
(After October 1st, 2007 Applicable Territorial Surcharge has been reduced to 6.8%)
Territory 3 - All other Counties
(Prior to October 1st 2007 Applicable Territorial Surcharge was 10%)
( After October 1st 2007 applicable territorial surcharge has been reduced to 4 %)
Further good news, the New York State Assessment was 18.6 %, is now 15.5%
Please be sure to update your bid spreadsheets to reflect the new reduction in workers compensation cost. For some of you the cost savings can be substantial. Congratulations, just in time for the holiday shopping season!
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