senate Bill S1293

2011-2012 Legislative Session

Determines workers' compensation rates based upon number of hours worked for an employer

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 04, 2012 referred to labor
Jan 06, 2011 referred to labor

S1293 - Bill Details

Current Committee:
Law Section:
Workers' Compensation Law
Laws Affected:
Amd §89, Work Comp L; amd §2304, Ins L
Versions Introduced in 2009-2010 Legislative Session:
S3339

S1293 - Bill Texts

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Determines workers' compensation rates based upon number of hours worked for an employer; requires maintenance of accurate records and provides a penalty for failure to maintain such records.

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BILL NUMBER:S1293

TITLE OF BILL:

An act
to amend the workers' compensation law and the insurance law, in
relation to rates for workers' compensation

PURPOSE OR GENERAL IDEA OF BILL:

To change the way workers' compensation premiums are calculated to be
based on the hours employees work instead of their salary.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1 of the bill amends the workers' compensation law to provide
that premiums paid on behalf of employees shall be determined on the
basis of the number of hours worked for the employer. Records
currently kept as required by Section 195 or Section 220 of the labor
law would be utilized in the rate determination process. Any
employer who fails to maintain such accurate records would be guilty
of a fraudulent practice.

Section 2 of the bill amends the insurance law to require that
premiums for workers' compensation insurance be calculated using
their hours of work instead of their salary. Any employer who fails
to submit or maintain accurate records would be guilty of a
fraudulent practice as defined in Section 114 of the workers'
compensation law.

Section 3 provides that this act shall take effect 180 days after it
becomes a law.

JUSTIFICATION:

Utilization of the salaries of employees serves as a competitive
disadvantage to those employers who choose to compensate their
workers at a higher wage level. In a "low bid" environment, this
formula unfairly acts against union contractors who have negotiated
terms and conditions favorable to the bargaining unit employees.
Calculation of rates based on hours worked would be a more accurate
measure of actual risk on the job while eliminating the competitive
disadvantage the present arrangement engenders.

PRIOR LEGISLATIVE HISTORY:

2009: S3339 (Duane), Died in Labor
2010: S3339 (Duane), Died in Labor

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None.

EFFECTIVE DATE:

One hundred eighty days after it becomes a law, with provisions.

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                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  1293

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             January 6, 2011
                               ___________

Introduced  by  Sen.  DUANE  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Labor

AN ACT to amend the workers' compensation law and the insurance law,  in
  relation to rates for workers' compensation

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 89 of the workers' compensation law is  amended  by
adding two new subdivisions 4 and 5 to read as follows:
  4. FOR THE PURPOSE OF EMPLOYMENTS, PREMIUMS IN THE STATE FUND SHALL BE
DETERMINED  ON  THE BASIS OF THE NUMBER OF HOURS WORKED FOR AN EMPLOYER.
RECORDS OF HOURS WORKED WHICH ARE MAINTAINED  PURSUANT  TO  SECTION  ONE
HUNDRED NINETY-FIVE OR TWO HUNDRED TWENTY OF THE LABOR LAW, WHICHEVER IS
APPLICABLE, SHALL BE UTILIZED IN SUCH RATE DETERMINATION.
  5.  ANY  EMPLOYER  WHO  FAILS  TO  SUBMIT OR MAINTAIN ACCURATE RECORDS
REQUIRED PURSUANT TO THIS SECTION SHALL BE GUILTY OF A FRAUDULENT  PRAC-
TICE PURSUANT TO SECTION NINETY-SIX OF THIS ARTICLE.
  S  2.  Subsection  (i) of section 2304 of the insurance law, as relet-
tered by chapter 11 of the laws of 2008, is  relettered  subsection  (k)
and two new subsections (i) and (j) are added to read as follows:
  (I)  PREMIUM RATES FOR WORKERS' COMPENSATION INSURANCE FOR EMPLOYMENTS
SHALL BE BASED ON THE NUMBER OF HOURS WORKED FOR AN EMPLOYER. RECORDS OF
HOURS WORKED WHICH ARE MAINTAINED PURSUANT TO SECTION ONE HUNDRED  NINE-
TY-FIVE  OR  SECTION  TWO  HUNDRED TWENTY OF THE LABOR LAW, WHICHEVER IS
APPLICABLE, SHALL BE UTILIZED IN SUCH RATE DETERMINATION.
  (J) ANY EMPLOYER WHO FAILS TO  SUBMIT  OR  MAINTAIN  ACCURATE  RECORDS
REQUIRED IN ACCORDANCE WITH THIS SECTION SHALL BE GUILTY OF A FRAUDULENT
PRACTICE  PURSUANT  TO  SECTION  ONE  HUNDRED  FOURTEEN  OF THE WORKERS'
COMPENSATION LAW, OR OF AGGRAVATED INSURANCE FRAUD AS DEFINED IN SECTION
176.35 OF THE PENAL LAW.
  S 3. This act shall take effect on the one hundred eightieth day after
it shall have become a law; provided, however, that effective immediate-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01193-01-1

S. 1293                             2

ly, the addition, amendment and/or repeal  of  any  rule  or  regulation
necessary  for  the implementation of this act on its effective date are
authorized and directed to be made and completed by the  chairperson  of
the  workers'  compensation board and the superintendent of insurance on
or before such effective date.

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