New York Gov. George E. Pataki has said workers’ compensation rates will be reduced this year by an average of 2.5 percent. The reduction, combined with rate decreases achieved in the past five years, represents an overall reduction of almost 40 percent.
“When I signed the 1996 reforms into law, I promised workers’ compensation rates would drop — today’s 2.5 percent reduction, combined with the past four year’s reductions, demonstrates that we have achieved that goal,” Pataki said. “By reducing the cost of doing business, we are making New York State even more competitive, helping us attract new jobs and industry.”
The 2.5 percent reduction will take effect October 1, 2000, and will be reflected in rate notices that insurers will send to employers immediately. The decreases will vary by business and type of industry, but some employers will see their rates fall by as much as 27 percent for the coming year such as those in the tunneling and iron and steel erection classes.
In 1995 rates were reduced by 8.4 percent and in 1996 rates were fell by over 18 percent. In 1997 rates decreased an additional 7.5 percent and in 1998 rates were cut by 3 percent. Last year’s rate level was unchanged. Prior to the enactment of the Governor’s reform legislation, New York State had the second highest workers’ compensation costs in the United States.
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