Bill > A08429

This bill establishes a Fraud Assessment Commission and creates a new assessment mechanism to fund investigations and prosecutions of workers' compensation fraud in the construction industry. The commission will consist of ten members appointed by the governor, representing 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 requires the chair of the workers' compensation board to establish an annual assessment on employers to fund investigations into workers' compensation fraud, willful failure to secure workers' compensation payments, and failure to maintain accurate records. A new Workers' Compensation Fraud Investigation Fund will be created, with at least 50% of its funds distributed to district attorneys for investigating and prosecuting fraud-related cases. The fund will be managed by the workers' compensation board chair, labor commissioner, and state comptroller, and the Fraud Assessment Commission will provide quarterly reports to legislative leaders detailing the fund's receipts, distributions, and projected balance. The legislative intent behind the bill highlights significant fraud in the construction industry, noting that 10-19% of construction workers are misclassified, potentially resulting in billions of dollars in unpaid taxes and undermining law-abiding employers.

Budget and Finance, Labor and Employment

https://www.nysenate.gov/legislation/bills/2025/A8429