New York workers comp requirements decide exactly when an employer must carry coverage, who counts toward the threshold, and the penalty for going without. This guide breaks down the New York workers comp requirements in plain English. (Injured instead of hiring? See our New York settlement and claim guides linked below.) All figures are from New York sources, verified as of June 2026.
New York at a Glance
| Required at | 1 employee(s) |
| Which workers count | Coverage is triggered by essentially the first employee — full-time, part-time, borrowed, leased, seasonal/day labor, and most family members all count; construction and most for-profit businesses are required from the first employee, and domestic/household workers must be covered if employed 40 or more hours per week (including live-in help). |
| Who is exempt | Sole proprietors and partners with no other employees are not required to cover themselves; one- or two-person corporations where those individuals own all the stock and hold all offices (and have no other workers) are not required to carry coverage; clergy/members of religious orders, certain licensed real estate agents/media sales reps paid by commission, and uncompensated volunteers for nonprofits are generally exempt; domestic workers employed under 40 hours/week and certain casual labor may also be excluded. |
| Penalty for going without | Civil penalty up to 2000 for each 10-day period without required coverage (or up to two times the cost of compensation for the uninsured payroll); a first criminal offense is a misdemeanor punishable by up to 30 days jail and a fine up to 25000, and a subsequent misdemeanor by up to 60 days and up to 50000; a repeat violation within five years is a class D felony fined 10000 to 50000; the Board can also issue an immediate stop-work order, and falsifying/failing to keep records is a separate misdemeanor fined 5000 to 10000. |
| Monopolistic state? | No — private carriers |
In This New York Guide:
Is Workers’ Comp Required in New York?
Yes — under New York’s Workers’ Compensation Law, virtually every employer must carry workers’ compensation coverage from the moment they have one or more employees (including most part-time, borrowed, leased, and family workers).
New York Workers’ Comp Requirements at a Glance
Here are the exact New York workers comp requirements every employer should know:
| Employees that trigger the mandate | 1 |
| Which workers count | Coverage is triggered by essentially the first employee — full-time, part-time, borrowed, leased, seasonal/day labor, and most family members all count; construction and most for-profit businesses are required from the first employee, and domestic/household workers must be covered if employed 40 or more hours per week (including live-in help). |
| Who is exempt | Sole proprietors and partners with no other employees are not required to cover themselves; one- or two-person corporations where those individuals own all the stock and hold all offices (and have no other workers) are not required to carry coverage; clergy/members of religious orders, certain licensed real estate agents/media sales reps paid by commission, and uncompensated volunteers for nonprofits are generally exempt; domestic workers employed under 40 hours/week and certain casual labor may also be excluded. |
| Owners & officers | Yes — sole proprietors, partners, and one/two-person corporate officers who own all stock are automatically excluded by default but may elect to include themselves on a policy; corporate officers of larger corporations are included by default but may elect to exclude themselves (file Form C-105.51 with the carrier). |
| Penalty for going without | Civil penalty up to 2000 for each 10-day period without required coverage (or up to two times the cost of compensation for the uninsured payroll); a first criminal offense is a misdemeanor punishable by up to 30 days jail and a fine up to 25000, and a subsequent misdemeanor by up to 60 days and up to 50000; a repeat violation within five years is a class D felony fined 10000 to 50000; the Board can also issue an immediate stop-work order, and falsifying/failing to keep records is a separate misdemeanor fined 5000 to 10000. |
| Monopolistic state? | No — buy from private carriers |
| State fund | Yes — competitive state fund, the New York State Insurance Fund (NYSIF), which must accept any employer seeking coverage. |
How to Get Workers’ Comp Coverage in New York
A New York employer can buy coverage from a private insurance carrier, from the New York State Insurance Fund (NYSIF) as a guaranteed competitive option, or by qualifying for individual/group self-insurance (which requires a substantial security deposit) through the Workers’ Compensation Board.
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.
Employees vs. Independent Contractors in New York
The most common way employers get the New York workers comp 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: New York separately mandates statutory disability benefits (DBL) and Paid Family Leave (PFL) coverage alongside workers’ comp; employers must post a notice of coverage (Form C-105) at the worksite, and general contractors must collect proof of coverage from subcontractors or be charged premium for them.
The state maximum weekly benefit is tied to the statewide average weekly wage and is recalculated annually — confirm the current-year cap with the Board, as it adjusts each July 1.
Understanding New York Workers Comp Requirements
The New York workers comp requirements exist so injured employees get care and lost wages without having to sue. For most employers, the New York workers comp requirements come down to one number: the employee count that triggers the mandate, shown in the table above.
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Once you hit that count, New York workers comp 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 comp requirements is unclear, your state board can confirm the threshold, the exemptions, and how to get covered.
Need to get covered? If you are an employer in New York shopping for a policy, our sister site compares small-business insurance, including workers’ comp. Compare business insurance options →
Frequently Asked Questions
Is workers’ comp required in New York?
Yes — under New York’s Workers’ Compensation Law, virtually every employer must carry workers’ compensation coverage from the moment they have one or more employees (including most part-time, borrowed, leased, and family workers).
What is the penalty for not having workers’ comp in New York?
Civil penalty up to 2000 for each 10-day period without required coverage (or up to two times the cost of compensation for the uninsured payroll); a first criminal offense is a misdemeanor punishable by up to 30 days jail and a fine up to 25000, and a subsequent misdemeanor by up to 60 days and up to 50000;
a repeat violation within five years is a class D felony fined 10000 to 50000; the Board can also issue an immediate stop-work order, and falsifying/failing to keep records is a separate misdemeanor fined 5000 to 10000.
Who is exempt from New York workers’ comp?
Sole proprietors and partners with no other employees are not required to cover themselves; one- or two-person corporations where those individuals own all the stock and hold all offices (and have no other workers) are not required to carry coverage; clergy/members of religious orders, certain licensed real estate agents/media sales reps paid by commission, and uncompensated volunteers for nonprofits are generally exempt;
domestic workers employed under 40 hours/week and certain casual labor may also be excluded.
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
- Insurance Information Institute: iii.org
These New York workers comp 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 Workers’ Comp Guides
- New York Workers’ Comp Settlements
- How to File a New York Workers’ Comp Claim
- Workers’ Comp Guides for All 50 States
Disclaimer: This guide is informational only and is not legal, medical, or financial advice. Workers Comp Explained is an independent educational resource, not a law firm or insurer. Workers’ comp benefits, settlement values, deadlines, and requirements vary by state and by the specific facts of your injury and change over time, and any settlement figures here are illustrative only.
Confirm your rights and any deadline with your state’s workers’ compensation board and a licensed attorney before you act.