--- title: "New York Workers' Comp Requirements for Employers | MCC" description: "New York workers' comp: most employers, construction 1+, owners and officers, penalties and the required notice, in the agency's words." url: "https://mcc-solutionsnj.com/bookkeeping/workers-comp-new-york" --- Workers' comp · New York # New York workers' compensation requirements Which employers must carry coverage, how owners and contractors are treated, and what the agency's pages say about penalties, the workplace notice, self-insurance and checking a policy. [![Intuit ProAdvisor Gold tier badge](/img/credentials/intuit-proadvisor-gold.png)](https://proadvisor.intuit.com/app/accountant/search?searchId=matthew-coleman77)Gold tier in Intuit's ProAdvisor program. [See my Intuit listing](https://proadvisor.intuit.com/app/accountant/search?searchId=matthew-coleman77) Keeping your own books? Tallyfinch does invoices, bank import and reports on your computer. [See Tallyfinch](/bookkeeping/mcc-books-downloadable-bookkeeping-software) **Short answer.** Virtually all employers must cover their employees (WCL sections 2 and 3). A corporation needs coverage once it has more than two officers or more than two shareholders. Construction: A worker injured while doing work for a contractor is presumed to be the contractor's employee, and construction has its own two-part independent contractor test. ## At a glance Who must carry it Virtually all employers must cover their employees (WCL sections 2 and 3). A corporation needs coverage once it has more than two officers or more than two shareholders. Construction A worker injured while doing work for a contractor is presumed to be the contractor's employee, and construction has its own two-part independent contractor test. Farms Farms with employees must carry it; a farmer's spouse and minor children don't count. Domestic workers Required for a domestic worker employed 40 or more hours a week by the same employer. Owners and officers A sole proprietor with no employees doesn't need it; LLC members and partners aren't employees for this purpose. Each may cover themselves voluntarily. A one- or two-person corporation owned and run by those people needs no coverage. Independent contractors Construction and commercial goods transportation have two-part tests; other industries weigh factors such as freedom from direction or control. A business can't make its employees buy their own policy. Self-insurance Employers can apply to the Board's Office of Self-Insurance to become approved self-insured employers. Going without Up to $2,000 for every 10 days without coverage, a stop-work order, and a misdemeanor (five or fewer employees) or class E felony (more than five) with fines up to $50,000. Workplace notice Post notice of coverage at each place of business (WCL section 51). Check a policy Use the Board's 'Does Employer Have Coverage?' search. [Open the lookup](https://www.wcb.ny.gov/content/ebiz/icempcovsearch/icempcovsearch_overview.jsp) Agency New York State Workers' Compensation Board ## In the agency's words **The rule** Hiring in another state? [Employer registration in New York, done for you](/bookkeeping/out-of-state-employer-registration), or [a free bookkeeping health check](/bookkeeping/health-check). "Virtually all employers in New York State must provide workers' compensation coverage for their employees (WCL §2 and 3)." **Construction** "is presumed to be the employee of that contractor for the purposes of workers' compensation." **Farms** "Workers' compensation insurance is required for all farms who have employees." **Domestic workers** "if the domestic worker is employed forty or more hours per week by the same employer." **Owners** "Workers' Compensation coverage is required if the corporation has more than two corporate officers or more than two shareholders." **Contractors** "A business cannot require employees working for that business to obtain their own workers' compensation insurance policy." **Going without** "The penalties for noncompliance can be as high as $2,000 for every 10-day period without coverage." **Notice** "Employers must post notice of coverage in their place(s) of business (WCL §51)." ## Three example businesses What the stated rule says for three common setups: - **2 employees, most businesses (not construction), llc:** Required for most employers. [See why](/bookkeeping/do-i-need-workers-comp-checker?state=ny&employees=2&industry=other&biz=llc) - **4 employees, construction, corporation:** Required. [See why](/bookkeeping/do-i-need-workers-comp-checker?state=ny&employees=4&industry=construction&biz=corporation) - **6 employees, most businesses (not construction), sole proprietor:** Required for most employers. [See why](/bookkeeping/do-i-need-workers-comp-checker?state=ny&employees=6&industry=other&biz=sole) Your own numbers: [open the checker for New York](/bookkeeping/do-i-need-workers-comp-checker?state=ny). ## Official sources - [Is Workers' Compensation Coverage Required? (NY Workers' Compensation Board)](https://www.wcb.ny.gov/content/main/coverage-requirements-wc/wc-coverage-required.jsp) (checked November 2026) - [Violations of Workers' Compensation Law (NY Workers' Compensation Board)](https://wcb.ny.gov/content/main/Employers/violations-wclaw.jsp) (checked November 2026) - [Information for Self-Insured Employers (NY Workers' Compensation Board)](https://wcb.ny.gov/content/main/SelfInsureds/Self_Ins_Employers.jsp) (checked November 2026) General information, not legal or insurance advice; we are not lawyers or insurance agents. Rules as published on the pages above, checked November 2026. We don't recommend or sell any insurer; the agency or a licensed agent can say how a rule applies to your business. ## Common questions **Who has to carry workers' comp in New York?** Virtually all employers must cover their employees (WCL sections 2 and 3). A corporation needs coverage once it has more than two officers or more than two shareholders. The agency puts it as "Virtually all employers in New York State must provide workers' compensation coverage for their employees (WCL §2 and 3)." **Is the rule different for construction in New York?** Yes. A worker injured while doing work for a contractor is presumed to be the contractor's employee, and construction has its own two-part independent contractor test. **Do owners and officers need coverage in New York?** A sole proprietor with no employees doesn't need it; LLC members and partners aren't employees for this purpose. Each may cover themselves voluntarily. A one- or two-person corporation owned and run by those people needs no coverage. **What about independent contractors in New York?** Construction and commercial goods transportation have two-part tests; other industries weigh factors such as freedom from direction or control. A business can't make its employees buy their own policy. **What happens to a New York employer with no coverage?** Up to $2,000 for every 10 days without coverage, a stop-work order, and a misdemeanor (five or fewer employees) or class E felony (more than five) with fines up to $50,000. **What notice must a New York employer post?** Post notice of coverage at each place of business (WCL section 51). All states: [workers' comp requirements by state](/bookkeeping/workers-comp-requirements-by-state) · [New Mexico](/bookkeeping/workers-comp-new-mexico) · [Oklahoma](/bookkeeping/workers-comp-oklahoma) Keeping coverage records in New York? ## Workers' Comp and Business Insurance Records Kit A state coverage checklist with New York's rule and official link, a certificate of insurance log for subcontractors, an injury report and claim log, and a workbook that flags policy renewals and expiring certificates, as Word files and PDFs. [Get the kit ($15)](/toolkits/workers-comp-and-insurance-records-kit) [Free sample](/toolkits/workers-comp-and-insurance-records-kit#free-starter)14-day full refund Tallyfinch ### Books you keep on your own computer Tallyfinch does invoices, bills, bank import, reconciliation and the main reports, in a file you own. $99 once, then $5 a month for updates; the app keeps working if you stop the plan. It does not do payroll or sales tax filing. The free download records up to 60 entries. [See Tallyfinch](/bookkeeping/mcc-books-downloadable-bookkeeping-software) [Download it free](/tools/pro/trial/mccBooks) [Compare the three apps](/software) ## Want payroll and insurance records kept for you? [See bookkeeping services](/bookkeeping/)[Call (908) 444-6373](tel:+19084446373)