New York workers' comp and liability insurance
New York requires workers' compensation from virtually every employer, and disability and Paid Family Leave coverage once you have an employee for 30 days. We help licensed home care services agencies (LHCSAs), home health agencies and assisted living residences put all three in place, along with the liability coverage their contracts require.
Who must carry workers' comp in New York
Virtually all New York employers must carry workers' compensation, and employees include family members and part-time, unpaid and leased workers (Workers' Compensation Law sections 2 and 3). Coverage isn't required for a sole proprietor, partnership or LLC with no employees, or for a one- or two-person corporation whose owners hold all the stock and offices and have no other workers. Owners can elect coverage. The program is run by the NYS Workers' Compensation Board, and classifications and loss costs come from the New York Compensation Insurance Rating Board (NYCIRB).
Disability and Paid Family Leave
Once you employ one or more people on at least 30 days in a calendar year, New York also requires disability benefits (DBL) and Paid Family Leave coverage, due four weeks after the 30th day (WCL section 202). For 2026, the Paid Family Leave employee contribution is 0.432% of wages, capped at $411.91 a year, with a maximum weekly benefit of $1,228.53 for up to 12 weeks. For 2027 the contribution rises to 0.452%, capped at $451.81.
Penalties for going without coverage
- Civil penalties of up to $2,000 for every 10 days without workers' comp, and personal liability for the president, secretary and treasurer (WCL section 52)
- A misdemeanor with fines of $1,000 to $5,000 for five or fewer employees; a class E felony with fines of $5,000 to $50,000 for more
- Stop-work orders that halt all business activity immediately (WCL section 141-a)
- Separate penalties for missing disability and Paid Family Leave coverage (WCL section 220)
Class codes for New York care providers
- 9051 Health care services, daily living skills, traveling: home health aides, homemakers and companions
- 8854 Health care services, medical and professional, traveling: RNs, LPNs, therapists and hospice visiting nurses
- 8866 Assisted living facilities: all employees and clerical
- New York does not use NCCI code 8835, so out-of-state quotes need reclassifying
Licensing home care in New York
Licensed home care services agencies (LHCSAs) are licensed by the NYS Department of Health under Public Health Law section 3605, with a $2,000 application fee. Since April 1, 2020, new applications go through a public need review along with character, competence and financial feasibility standards. A bill to impose a new LHCSA moratorium from April 2027 (S4400) remains in committee. Certified home health agencies (CHHAs) need separate approval, and assisted living residences are certified by the Department of Health on top of an adult care facility license.
Frequently asked questions
Is workers' comp required in New York with one employee?
Yes. Virtually all New York employers must carry workers' compensation, including for part-time workers and family members. Only owners with no employees, and certain one- or two-person corporations, are exempt.
Do New York employers need disability and Paid Family Leave insurance?
Yes, once you employ one or more people on at least 30 days in a calendar year. Coverage is due four weeks after the 30th day of employment.
What workers' comp class code applies to home health aides in New York?
Class 9051, health care services, daily living skills, traveling, for aides, homemakers and companions. Nurses and therapists who travel to patients are class 8854. New York does not use NCCI code 8835.
What are the penalties for not having workers' comp in New York?
Civil penalties of up to $2,000 per 10 days without coverage, criminal charges from a misdemeanor up to a felony depending on the number of employees, stop-work orders, and personal liability for corporate officers.
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