New York State Passes Worker's Compensation Reform

 As part of the first budget under new Governor Spitzer, New York State accomplished what has been heralded as significant worker's compensation reform. The result has been characterized as a "win-win" result with benefits increasing for workers for the first time in a decade, while costs will decrease. Key components of the agreement include increases to the maximum amount of money received by workers, strong anti-fraud measures and setting a maximum number of years certain workers can receive benefits resulting in savings estimated to be in the hundreds of millions.

 New York Government Continues to Employ More Workers than Any Other State

 According to an analysis done by the Public Policy Institute, New York State and local governments pay public employees 21 percent more than the national average and the number of public employees compared to the general population is the highest in the country. The average yearly salary over $54,000 was fourth highest in the country and 21% higher then any other state. Lastly, New York and local government employed 62 workers per every 1,000 residents, 14% above the national average.

 Governor Spitzer's Budget Creates Tax Cuts for Manufacturers and Other Businesses

 Under the recently passed budget the Article 9-A corporate tax rate levied on more then 50,000 businesses dropped from 7.5% to 7.1%.  The primary tax rate levied on banks and insurance companies was decreased by the same percentage. Further, the general tax rate affecting approximately 3,400 manufacturing companies drops from 7.5% to 6.5%.

 A Dissolved Corporation Can Still Bring a Lawsuit for Indemnification

 In Tedesco v. A.P. Green Industries, 8 N.Y. 3d 243 (2007), Insulation Distributor was a distributor of asbestos products resulting in their involvement in a number of lawsuits. They were eventually sued by a former employee of Dupont. Insulation Distributors went out of business and was dissolved in 1999. Subsequent to being sued IDI brought a third party action against Dupont. The Court of Appeals held that a third party action from a dissolved corporation could proceed since the activity was part of "winding up its affairs."

An Employee Does Not Need to Give Notice of an Injury Where the Employer Is Aware of the Injury

 In Coffey v. Shop-Rite Supermarkets North, -- N.Y.S.2d --, 2007 WL 1075084 (3rd Dept. 2007 ), the claimant was injured on December 20, 2004 but did not file a written report until April 9, 2005. The employer appealed the decision of a Worker's Compensation Judge establishing the injury arguing lack of timely notice. The Appellate Court held that the record established that the employer was aware of the witnessed accident and therefore the employee was excused from the timely notice requirement.

 Prepared by Brian Biggie