Bill > S07950

This bill establishes a Fraud Assessment Commission and a Workers' Compensation Fraud Investigation Fund to combat widespread fraud in the construction industry's workers' compensation system. The commission will consist of ten members appointed by the governor, including representatives from labor organizations, employers, insurers, and a claimant attorney, with ex officio members from the workers' compensation board, labor department, and fraud inspector general. The bill directs the chair of the workers' compensation board to create an annual assessment on employers to fund investigations and prosecutions of workers' compensation fraud, willful failure to secure workers' compensation payments, and failure to maintain accurate records. The legislation is motivated by findings that employers are systematically reducing labor costs through premium fraud, with an estimated 10-19% of construction workers misclassified, resulting in billions of dollars in unpaid taxes and insurance premiums. The newly created fund will distribute at least 50% of its resources to district attorneys for investigating and prosecuting such fraud cases, with provisions to redistribute funds if local prosecutors are unwilling or unable to pursue these investigations. The bill aims to combat wage theft and ensure fair labor practices in the construction industry by providing dedicated resources for fraud detection and prosecution.

Budget and Finance, Labor and Employment

https://www.nysenate.gov/legislation/bills/2025/S7950