New York Workers’ Compensation and Unemployment Insurance Requirements

New York Workers’ Compensation and Unemployment Insurance Requirements: Key Takeaways

• Employers in New York State must provide workers' compensation insurance for virtually all employees, including part-time and family members.
• Unemployment insurance registration in New York is required when an employer pays $300 or more in wages in a calendar quarter.
• Employers must post notices regarding workers' compensation (Form C-105) and unemployment insurance where employees can easily see them.

In New York, employers are legally obligated to secure both workers’ compensation and unemployment insurance coverage for eligible employees.

This article outlines the key requirements and steps New York employers must follow to stay compliant with state insurance laws.

For tailored guidance on coverage, see our restaurant insurance guide.

1. Workers’ Compensation Insurance Requirements in New York

New York mandates that nearly all employers provide workers' compensation insurance to protect employees who get injured or ill due to work-related reasons.

This coverage applies broadly including to part-time workers and even family members employed by the business.

Common hospitality roles are covered as well; see the bartender job description for typical responsibilities employers insure.

Coverage and Eligibility

Workers' compensation covers injuries, illnesses and related medical expenses for employees.

Employers in New York must ensure every eligible worker is covered without exception.

How to Obtain Workers’ Compensation Coverage

Employers have several options to obtain coverage:

• Purchasing insurance through private insurance carriers.
• Securing coverage from the New York State Insurance Fund (NYSIF), a state-run insurer.
• Becoming self-insured if meeting state requirements.

Choosing the right option depends on the size, industry, and risk profile of the business.

To help avoid coverage gaps and denials, review insurance claims mistakes restaurant owners often make.

Posting and Notification Requirements

Employers are required to post a Notice of Compliance (Form C-105) visibly at each worksite.

This informs employees that workers' compensation coverage is in effect and whom to contact in case of an injury.

Front-of-house leaders often manage compliance postings—clarify expectations in the restaurant manager role.

Penalties for Non-Compliance

Failing to provide required coverage can lead to heavy penalties including fines and criminal charges.

It also exposes the business to lawsuits and liability for workers’ medical costs and lost wages.

Reduce wage-and-hour exposure by addressing off-the-clock risks with clear policies and timekeeping.

2. Unemployment Insurance Requirements in New York

In addition to workers' compensation, New York employers must also provide unemployment insurance to eligible employees.

This insurance provides temporary income support to workers who lose their jobs through no fault of their own.

When to Register for Unemployment Insurance

Employers must register for unemployment insurance if they pay $300 or more in wages in any calendar quarter.

Registration involves completing the NYS 100 employer registration form to establish liability.

As you staff leadership roles, ensure timely registration and coverage for positions with supervisory duties such as kitchen manager duties.

Funding and Taxation for Unemployment Insurance

The unemployment insurance program is funded through taxes paid by employers based on payroll and experience rates.

These taxes support benefit payments to eligible unemployed workers.

If you operate across jurisdictions, align contributions with multi-state payroll best practices.

Posting Requirements and Employee Notification

After registration, employers receive a “Notice to Employees” poster.

This poster must be displayed prominently at all places of business for employees to view easily.

3. Important Considerations and Best Practices for Employers in New York

It’s crucial for New York employers to remain compliant to avoid penalties and support their workforce.

Best practices include:

• Obtaining workers' compensation coverage immediately upon hiring employees.
• Registering for unemployment insurance as soon as payroll meets the required $300 threshold.
• Posting all required notices visibly and maintaining them up to date.
• Maintaining accurate records of insurance policies, registrations, and correspondence with state agencies.
• Reviewing state websites periodically for updates to insurance requirements or thresholds.

When advertising open roles, follow hospitality-specific job posting compliance to avoid penalties.

Hotel operators should also confirm coverage for room attendants; review the housekeeper job description when defining responsibilities.

4. Useful Official Resources for New York Employers

For additional information and to ensure full compliance, employers can consult the following official websites:

• New York State Workers' Compensation Board – details on coverage requirements and how to obtain insurance.
• New York State Department of Labor – employer registration and unemployment insurance information.
• New York State Insurance Fund (NYSIF) – state-run workers' compensation insurance options.

New York Workers’ Compensation and Unemployment Insurance Requirements: Conclusion

New York employers are legally responsible for providing both workers’ compensation and unemployment insurance for their employees.

By understanding and complying with coverage requirements, registration thresholds, posting mandates, and penalty risks, businesses can protect their workforce and avoid costly legal issues.

Using official state resources and maintaining proactive insurance management is essential to meeting these obligations efficiently and effectively.