How Much Is a Workers' Comp Penalty in NY?

The Civil Penalty: WCL §52(5)

Under Workers' Compensation Law §52(5), any New York employer who fails to maintain required workers' compensation insurance is subject to a civil penalty of $2,000 for each 10-day period during which coverage was absent.

The penalty accrues in 10-day increments. Here are the penalty amounts for common uninsured periods:

• 10 days: $2,000
• 30 days: $6,000
• 60 days: $12,000
• 90 days: $18,000
• 6 months: $36,000
• 1 year: $73,000
• 2 years: $146,000

Additional Penalties Beyond §52(5)

The $2,000/10-day civil penalty is just the base. Additional liabilities include:

• Criminal fines: Under WCL §52(1)–(4), willful non-compliance is a criminal offense. First offense: $1,000–$5,000 fine. Second offense: $5,000–$50,000 fine.
• UEF liability: If an employee is injured during the uninsured period, the employer must reimburse the Uninsured Employer's Fund for all benefits paid to that employee.
• Interest: Once a penalty becomes a judgment, it accrues 9% annual interest.
• Enforcement costs: The WCB may seek reimbursement of enforcement costs in some cases.

Can the Penalty Be Reduced?

Yes — the WCB has broad authority to reduce civil penalties based on mitigating factors. Most businesses that engage in the negotiation process achieve reductions of 40–70%. See our comprehensive guide: WCB Penalty Reduction Program Explained.

Use the Penalty Calculator

Use our free online tool to estimate your penalty based on the specific number of days without coverage: WCB Penalty Calculator.

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