New York State Workers’ Compensation Rate Cuts Could Save Employers $191 Million in 2025!
Significant Savings for Employers
New York State is set to implement a groundbreaking reduction in the workers’ compensation assessment rate, resulting in estimated savings of $191 million for employers in 2025. Effective January 1, 2025, the rate will drop by 22% to 7.1% of the standard premium or premium equivalent. This change is expected to benefit over 400,000 small businesses across the state.
Supporting Business Growth
The reduction in assessment costs is crucial for both businesses and employees. These significant savings not only create more employment opportunities but also strengthen the vital services that businesses provide to their communities. With lower costs, employers can reinvest in their workforce, fostering a healthier business environment.
A Progressive Workers’ Compensation System
The Chair of the New York State Workers’ Compensation Board recently celebrated this decision, highlighting the trend of declining assessments alongside rising benefits for workers. The Board is committed to building a better workers’ compensation system for hardworking New Yorkers and businesses alike.
Understanding the Rate Structure
Employers contribute to the workers’ compensation system through an annual assessment, which covers essential benefits for injured workers while protecting businesses from costly lawsuits. The Workers’ Compensation Board determines the assessment rate based on its budget and estimated statewide premium, allowing for a systematic reduction in costs over the years. The new 7.1% rate marks a significant decrease of over 43% since 2019, when the rate was 12.6%.
A Historical Overview of Rate Changes
- 2019: 12.6%
- 2020: 12.2%
- 2021: 11.2%
- 2022: 10.2%
- 2023: 9.8%
- 2024: 9.2%
- 2025: 7.1%
For more details on the upcoming assessment rate and resources available to employers, visit the NYS Workers’ Compensation Board’s website at wcb.ny.gov. This substantial reduction is a crucial step toward creating a more affordable and supportive business landscape in New York State.
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Gallery Credit: V.Turco