Rule 59 of the Industrial Code is a mandatory program aimed at enhancing workplace safety and preventing losses, as specified within New York State’s Workers Compensation law. It’s crucial for employers to adhere to this regulation to manage their workers’ compensation losses and insurance costs effectively.
This program not only reduces risks in the workplace but also enables better control over workers’ compensation coverage. Failure to comply incurs a 5% surcharge on the workers’ comp insurance premium initially, followed by an additional 5% for each subsequent instance of non-compliance. If you’ve received a compliance notice from the New York Compensation Insurance Rating Board regarding Rule 59 or anticipate non-compliance issues, we’re here to help.
Both have to apply to you for the New York Compensation Insurance Rating Board to send you a notice.
If you receive a notice, you must schedule a consultation and evaluation. The consultation will include:
A consultant certified by the DOL must perform the consultation. KMY Enterprise consultants are certified by the DOL.
Once you have scheduled a consultation, you must send notice to the DOL and your insurer. You are required to provide:
Our consultant will give you a written evaluation at the end of the consultation. You must send a copy of the evaluation to both the DOL and your insurance carrier. You must include a statement that describes how you will take the remedial action recommended in the evaluation. Specifically:
After remediation is completed, your insurer will conduct an inspection.
You should contact your workers’ compensation insurer after you get the notice from NYCIRB. In all cases, a representative from your insurer must do a re-inspection to make sure you comply with ICR 59. You should keep your insurer up to date about what you are doing to comply.
A consultation should only address areas where you have primary control over the workplace.
If you do not set up a consultation, your insurer will charge a penalty. Your insurer will also charge a penalty if you do not comply with the recommendations in the evaluation report within the deadlines. There also may be a penalty for failing to meet deadlines. The penalty is a 5% surcharge to your manual rate premium for the next policy period. The surcharge is cumulative. If you continue non-compliance, the insurer will charge an additional 5% each year. Penalties will accrue until you comply with ICR 59.
Once you are subject to this program, you must continue to comply with ICR 59 indefinitely.
When an insurer re-inspects a worksite, they may determine that it is not in compliance. If you disagree, you may appeal. You must file an appeal with the DOL within 30 days of getting the insurer’s re-inspection report. You must send a copy of the appeal to the insurer. To resolve an appeal, the DOL will inspect the worksite. DOL will then issue a written decision. That decision is binding on all parties.
When you receive a notice from NYCIRB: