If you employ even one person in New York, yes, you need workers compensation, and it has to be in place before that person's first shift. New York's Workers' Compensation Law reaches almost every employer starting with the first employee, and there is no carve-out for part-time, seasonal, temporary, or family help.
Who this is for: Any New York owner who just wants a straight answer to one question, do I need workers comp, without reading statute language. Workers comp (short for workers compensation) is the coverage that pays an injured employee's medical bills and part of their lost wages after a work injury, and in exchange it protects you from being sued over that injury.
The short version
- The rule: New York's Workers' Compensation Law requires virtually every employer to carry coverage for its employees.
- The trigger: your first employee. There is no headcount minimum and no part-time, seasonal, or family exception.
- Who counts: full-time, part-time, seasonal, temporary, borrowed, and leased workers, day laborers, and family members on the payroll all count.
- The main exception: owners. Sole proprietors, partners, and LLC members are left out by default, while most corporate officers are covered by default.
- Skipping it: the state Workers' Compensation Board can order you to stop work, fine you, and expose you to a lawsuit from the injured worker.
Who has to be covered in New York?
New York starts from a broad rule: nearly everyone who performs work for your for-profit business is an employee who must be covered, even people you might not think of as staff. Here is how the common cases break down.
| Type of worker | Must be covered? | Notes |
|---|---|---|
| Full-time employee | Yes | From the very first hire, no waiting period |
| Part-time, seasonal, or temporary | Yes | No hours minimum; one part-timer triggers the rule |
| Day or casual laborer | Yes | Counts the same as a regular hire |
| Borrowed or leased worker | Yes | Coverage still has to be in place |
| Family member on the payroll | Yes | No general family exemption for a for-profit business |
| Unpaid volunteer in a for-profit business | Yes | For-profit volunteers must be covered |
| Household worker (nanny, housekeeper) | Yes, if 40 or more hours a week, or if they live in your home | A live-in domestic worker is covered at any number of hours; casual yard chores are not |
| Sole proprietor, partner, or LLC member | Not required for themselves | May elect to be included with a form |
| Most corporate officers | Yes, by default | Narrow exception for a one or two owner corporation with no other staff |
Which owners can leave themselves out?
This is where your business type matters, and New York's rules run in opposite directions depending on how you are set up:
- Sole proprietors, partners, and LLC or LLP members are automatically left out of the business's own policy. You still must cover any non-owner employee, and you can elect to cover yourself by filing Form C-105.32. See sole proprietors, partnerships, and LLCs.
- Corporate officers are covered by default. Only a corporation with one or two officers who together own all the stock and has no other employees can skip coverage. See corporations.
None of these change the core rule: the moment you have one non-owner employee, that person has to be covered.
What if I go without it?
New York enforces coverage hard, and construction is its top target. The Workers' Compensation Board can hit an uninsured employer with:
| Consequence | What it means |
|---|---|
| Civil penalty | Up to $2,000 for every 10-day period without coverage, or two times the cost of the missed coverage, whichever is greater |
| Stop-work order | The Board can order all business activity to halt until you are covered |
| Criminal charges | A misdemeanor for five or fewer employees, a felony for more than five |
| Personal liability | Corporate officers, sole proprietors, and partners are personally on the hook |
| Lawsuit | An injured employee can sue you directly, and you lose your usual legal defenses |
The full breakdown is on our New York penalties guide.
A quick New York example
Illustrative, not a quote. Maria opens a small cafe in Brooklyn as an LLC with two baristas. As an LLC member she does not have to cover herself, but both baristas must be covered from day one. She buys a workers comp policy, and a few months later one barista slips on a wet floor and fractures a wrist, needing surgery and six weeks off. The policy pays the medical bills and part of the lost wages, and Maria pays nothing on the claim itself. Had she skipped coverage to save the premium, she could have faced a stop-work order shutting the cafe, a civil penalty, and a direct lawsuit from the barista with no fellow-servant or assumption-of-risk defense available.
Real questions New York owners ask
I have one part-time employee in New York. Do I really need workers comp?
Yes. New York requires coverage as soon as you have one employee, and part-time or seasonal status makes no difference. There is no hours minimum, so a single part-timer triggers the rule.
Do I have to cover myself as the owner?
It depends on your business type. Sole proprietors, partners, and LLC members are left out by default and can opt in with Form C-105.32. Most corporate officers are covered by default, with a narrow exception for a one or two owner corporation that has no other employees.
Does workers comp have to be in place before the first day of work?
Yes. Coverage should be active before your new hire's first shift, not after. New York treats any day worked without coverage as an uninsured period that can carry penalties.
I only hire day laborers and temps. Are they covered too?
Yes. Day laborers, casual workers, temporary staff, and borrowed or leased workers all count as employees in New York and must be covered just like a regular hire.
What does workers comp actually pay for?
It pays an injured worker's medical treatment for the work injury and a portion of the wages they lose while they cannot work, plus benefits for lasting injuries. In return, it is normally the worker's only remedy against you.
Can clients ask for proof that I carry coverage?
Yes. General contractors, landlords, and government agencies often ask for proof of coverage before you can start a job or sign a lease. We can usually turn that proof around the same business day once you are covered.
Who enforces this in New York?
The New York State Workers' Compensation Board administers the law and enforces coverage. It can issue stop-work orders and penalties, while insurer solvency and rates sit with the Department of Financial Services.
Why New York owners choose Morrow
- We shop the right market for you. New York is an open, competitive market: you can buy coverage from any private carrier the state authorizes or from the state-run New York State Insurance Fund (NYSIF), so Morrow shops multiple insurers to find the best fit instead of leaving you with a single option.
- We catch pricing mistakes. Your price depends heavily on the category your work falls into for pricing (the class code). Put people in the wrong category and you overpay for years. We review your payroll and classifications before you buy.
- Proof of coverage, fast. Need a certificate (proof of coverage) for a general contractor or a landlord before Monday? We turn those around the same business day for most carriers.
- We help lower the score that drives your price. Insurers give you a score based on your past claims that raises or lowers your cost (the experience modification rate). We review it each year, flag errors, and connect you with return-to-work and safety resources that bring it down.
- Real people when a claim happens. When someone gets hurt, we stay involved through the life of the claim, not just at renewal.
Related New York guides
Every New York business is set up a little differently. These companion guides answer the same question for other situations, plus the national explainers behind the terms used here.
- Business insurance in New York (start here)
- I own an LLC: do I need workers comp?
- I'm a sole proprietor: do I need workers comp?
- I own a corporation (C-corp or S-corp): do I need it?
- We're a partnership: do we need workers comp?
- We're a nonprofit: do we need workers comp?
- My workers are 1099: do I still need it?
- Only part-time or seasonal staff: do I need it?
- I only employ family: do I need workers comp?
- Remote or out-of-state staff: do I need coverage?
- What happens if I don't carry workers comp?
- How much does workers comp cost?
- How do I get workers comp (even if turned down)?
- What insurance do I need for a contractor license?
- Workers compensation insurance, explained
- What workers comp costs (national guide)
- Hiring your first employee: what changes
- What workers comp does not cover
- Restaurant workers comp in New York
This guide is general information, not legal advice. New York rules and penalty amounts can change, so verify current requirements with New York State Workers' Compensation Board or a licensed advisor before you rely on them. Last updated: July 2026.