New York Governor Eliot Spitzer has released details of an agreement reached with lawmakers to reform the state's workers' compensation system.
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The maximum weekly benefit for injured workers would increase from $400 to $500 in the first year, $550 in the second year, $600 in the third year, and to two-thirds of the average weekly wage in New York in the fourth year. Once the maximum benefit reaches two-thirds of the average weekly wage, the maximum benefit would be indexed annually. The minimum weekly benefit will be increased from $40 to $100.
Cost savings would be achieved by setting maximum number of years that some injured workers can receive cash benefits.
The agreement also includes new anti-fraud measures, such as the ability to stop work on a job site where a company has failed to purchase workers' compensation insurance for its workers, higher criminal penalties for violators, and debarment provisions.
Under the deal, a fund known as the Second Injury Fund, which is now financed by assessments passed through to employers, would also be closed.