In a significant financial reprieve for employers in New York, the state has announced a decrease in the workers’ compensation assessment rate for the upcoming year.
Clarissa Rodriguez, chair of the New York State Workers’ Compensation Board, confirmed that the rate will be reduced by 6% in 2024. This reduction is part of the state’s efforts to ease the financial burden on businesses, particularly in the current economic climate marked by rising costs and inflation.
Employers in New York are required to contribute an annual assessment to fund the workers’ compensation system. This system is essential for providing benefits to workers who suffer job-related injuries or illnesses and safeguards employers against lawsuits. The assessment rate is determined based on the statewide need and budgeted premiums, with the rate established by November 1 each year and implemented on January 1. The upcoming reduction is projected to save businesses around $53 million, according to the governor’s office.
The calculation of the rate involves dividing the board’s total estimated annual expenses by the total estimated statewide premium. Insurers must then apply this rate to their premium or its equivalent. Governor Kathy Hochul highlighted the significance of the rate decrease, stating that it will result in considerable savings for small businesses and help keep more money in the pockets of New Yorkers. This move is seen as a critical step in supporting the state’s employers amidst the challenges of rising costs and economic pressures.
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