Established in 1914, it was viewed as a historic agreement between labor and management designed to address the needs of the workforce. Under this agreement, employers assumed all liability, regardless of fault, for all job-related injuries. But the law also set monetary limits on employers' liability. Workers received prompt, specific and adequate payment for injuries, but relinquished the right to sue for more. Premiums are rates paid by employers for their employees' workers' comp insurance.
Employers pay different rates for different jobs.
New York State sets rates for nearly 800 different job classifications, which differ based on the danger associated with different kinds of work. After an employer's total premium is calculated in this way, an additional percentage, called an administrative assessment, is tacked onto the bill. Last year's assessment rate was 44.7 percent higher than the previous year's assessment rate. The Insurance Department generally announces the final premium change in July. Both costs take effect each year in October.