New York workers compensation requirements decide exactly when you must carry coverage, who counts toward the threshold, and what it costs to skip it. This guide breaks down the New York workers compensation requirements in plain English — the employee count that triggers the mandate, who is exempt, the penalty for going without, and how to get covered. All figures are from New York sources, verified as of June 2026.
In This New York Guide:
Is Workers’ Comp Required in New York?
Workers compensation is required in New York for virtually all employers with one or more employees, including part-time and seasonal workers; sole proprietors and partners with no employees are not required to carry coverage but may voluntarily elect it
New York Workers’ Comp Requirements at a Glance
Here are the exact New York workers compensation requirements every employer should know:
| Employees that trigger the mandate | 1 |
| Which workers count | All employers with 1 or more employees must carry coverage, including full-time, part-time, and seasonal workers; domestic workers in a private household trigger the requirement only if they work 40 or more hours per week for the same employer or live on premises; all construction contractors and subcontractors must carry coverage regardless of employee count |
| Who is exempt | Sole proprietors with no employees; partners of a partnership with no employees; one- or two-person corporations where those individuals own all stock and hold all offices of the corporation; ministers and members of religious orders; domestic workers who individually work fewer than 40 hours per week for a household and do not live on premises; volunteers of certain nonprofit organizations |
| Owners & officers | Sole proprietors are not automatically included in their policy and must affirmatively elect coverage; partners without employees are excluded unless they elect to be covered; any two executive officers who between them own all issued and outstanding stock and hold all offices of the corporation may file to exclude themselves from coverage using WCB Form C-105.51 |
| Penalty for going without | Civil penalty of up to 2000 per 10-day period of noncompliance, or up to two times the cost of compensation for the payroll during the period of failure, whichever is greater; failure to secure coverage for 5 or fewer employees within a 12-month period is a misdemeanor punishable by a fine of 1000 to 5000; failure to secure coverage for more than 5 employees within a 12-month period is a class E felony punishable by a fine of 5000 to 50000; a second conviction within 5 years is a class D felony with a fine of at least 10000; the WCB may also issue a stop-work order halting all business operations and debar the employer from public works contracts for up to one year |
| Monopolistic state? | No — buy from private carriers |
| State fund | New York State Insurance Fund (NYSIF), a competitive state fund that competes with private insurers; NYSIF is the largest workers compensation insurer in New York and must provide coverage to any employer regardless of risk profile or size |
How to Get Workers’ Comp Coverage in New York
Employers may purchase coverage from a private insurance carrier, from the New York State Insurance Fund (NYSIF), or through a Board-approved group self-insurance trust; employers unable to obtain coverage in the voluntary market may apply through the assigned risk pool administered by the WCB
Private market: YES
What Workers’ Comp Covers in New York
Workers’ compensation is a no-fault system: an injured employee gets benefits without having to prove the employer did anything wrong, and in exchange gives up the right to sue for most workplace injuries. A typical New York policy pays for medical treatment tied to a work injury, part of the wages lost while the worker recovers, longer-term disability benefits if the injury is permanent, and death benefits to a family.
It also includes employers-liability coverage, which protects the business if an injury still leads to a lawsuit. That trade-off is the practical heart of the New York workers compensation requirements: the coverage exists to keep one bad injury from sinking both the worker and the business.
Employees vs. Independent Contractors in New York
The most common way owners get the New York workers compensation requirements wrong is by assuming a worker is an “independent contractor” who does not count. State agencies look at how the work is actually controlled, not the label on a 1099. If New York decides a contractor was really an employee, the business can owe back premiums and penalties as if coverage should have been in place all along.
When you are close to the employee threshold, confirm each worker’s status with your state board before you decide you are exempt.
Other New York workers’-comp rules: All construction businesses acting as contractors, general contractors, or subcontractors must carry workers compensation regardless of the number of employees or corporate structure; the WCB requires proof of workers compensation coverage before state and municipal agencies may issue permits, licenses, or contracts under WCL Section 57; out-of-state employers with any employees working in New York must carry a New York workers compensation policy;
NYSIF acts as insurer of last resort and cannot deny coverage to any employer
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Understanding New York Workers Compensation Requirements
The New York workers compensation requirements exist to make sure injured employees get medical care and lost wages without having to sue. For most owners, the New York workers compensation requirements come down to one number: the employee count that triggers the mandate, shown in the table above.
Once you hit that count, New York workers compensation requirements apply whether you planned for them or not, and the penalty for going without is real. If any part of the New York workers compensation requirements is unclear for your business, your state workers’-comp board can confirm the threshold, the exemptions, and how to get covered.
Next step: Once you know what your business in New York actually needs, comparing quotes from several carriers takes only a few minutes. Many owners do this right after they understand their state and trade requirements.
Frequently Asked Questions
Is workers’ comp required in New York?
Workers compensation is required in New York for virtually all employers with one or more employees, including part-time and seasonal workers; sole proprietors and partners with no employees are not required to carry coverage but may voluntarily elect it
What is the penalty for not having workers’ comp in New York?
Civil penalty of up to 2000 per 10-day period of noncompliance, or up to two times the cost of compensation for the payroll during the period of failure, whichever is greater; failure to secure coverage for 5 or fewer employees within a 12-month period is a misdemeanor punishable by a fine of 1000 to 5000;
failure to secure coverage for more than 5 employees within a 12-month period is a class E felony punishable by a fine of 5000 to 50000; a second conviction within 5 years is a class D felony with a fine of at least 10000; the WCB may also issue a stop-work order halting all business operations and debar the employer from public works contracts for up to one year
Who is exempt from New York workers’ comp?
Sole proprietors with no employees; partners of a partnership with no employees; one- or two-person corporations where those individuals own all stock and hold all offices of the corporation; ministers and members of religious orders; domestic workers who individually work fewer than 40 hours per week for a household and do not live on premises; volunteers of certain nonprofit organizations
Official New York Sources & Resources
- New York New York State Workers’ Compensation Board: https://www.wcb.ny.gov/
- New York Workers’ Comp Statute: https://www.nysenate.gov/legislation/laws/WKC
- U.S. Department of Labor — Workers’ Comp: dol.gov
- U.S. Small Business Administration: sba.gov
These New York workers compensation requirements were last verified against official sources in June 2026. Rules and penalties change — confirm the current figure with your state workers’-comp board or a licensed agent.
More New York Business Insurance Guides
Disclaimer: This guide is informational only and is not insurance, legal, or tax advice. Business Insure Guide is an independent educational resource, not an insurance agency or carrier. Coverage needs, legal requirements, and prices vary by business, profession, and state and change over time. Always verify the exact requirement and price with a licensed insurance agent and your state before you buy.