In a move that has been long-awaited by workers and advocates across New York, Governor Kathy Hochul has taken a decisive step to improve the lives of injured workers. She signed into law a bill that will not only increase the minimum weekly workers’ compensation benefit but also revolutionize the way these benefits are calculated, ensuring a fairer and more just system.
A Boost In Workers’ Compensation Benefits
The heart of this groundbreaking reform is the significant increase in the minimum weekly permanent and temporary partial disability benefits. As it stands, the minimum weekly benefit has remained stagnant since May 2013 at $150. However, with the signing of S1161/A2034, these benefits will see a remarkable transformation. In 2024, the minimum weekly benefit will rise to $275, providing immediate relief to workers who have long felt the weight of inadequate compensation.
But that’s not all; the bill doesn’t stop at a one-time increase. In 2025, it will continue its upward trajectory, reaching $325 per week. These changes are not just about numbers; they’re about improving the lives of workers who depend on these benefits to make ends meet when faced with an injury.
A Fairer And More Equitable Future
The most transformative aspect of this reform is the indexing of minimum weekly benefits to the state’s average weekly wage, ensuring fair compensation for all injured workers. Beginning in 2026, these benefits will be linked directly to the state’s average weekly wage, the same metric used to adjust the maximum benefit.
Under this new system, the minimum weekly benefit will be set at one-fifth of the average wage. This means that if an injured worker’s earnings fall below the threshold, they will receive full wages as compensation for their covered injury. This change is a game-changer for those who, in the past, were left with inadequate compensation due to lower incomes.
This new law is a testament to the power of advocacy and the determination to create a more equitable society. It acknowledges the fundamental principle that every worker, regardless of their income, deserves fair compensation when faced with a work-related injury. Governor Hochul’s signature on this bill marks a historic moment for New York and a brighter future for its injured workers.
Navigate The Future Of New York Labor Laws With GMS
In light of these progressive changes in workers’ compensation benefits, the landscape of employment in New York is evolving rapidly. For businesses, this presents an excellent opportunity to demonstrate their commitment to their employees’ well-being while also staying compliant with the latest regulations. Partnering with a professional employer organization (PEO) like GMS is the key to confidently navigating these changes.
PEOs offer guidance on navigating the intricacies of these new laws and provide tailored solutions to ensure your business is fully compliant. Partnering with us allows you to focus on what you do best – growing your business – while we handle the complexities of compliance, ultimately fostering a more productive, happier, and secure work environment for your employees. When you partner with us, we’ll lead the way by helping you embrace the future of workplace fairness. Contact us to learn more.