How Much Does Workers Compensation Pay in New York

How Much Does Workers Compensation Pay in New York

In New York, workers compensation replaces a portion of wages lost after a workplace injury, and the amount depends on the type of benefit, the worker's pre-injury earnings, and the state's annual maximums. Unlike some states that use a fixed percentage of the state average weekly wage, New York generally pays two-thirds of the average weekly wage (AWW), capped at a ceiling that adjusts every July 1. The 2024 maximum average weekly wage is $1,305.75, setting the top weekly temporary disability rate at $901.00 and the top permanent total disability rate at $1,175.17. Benefits are not subject to federal or state income tax.

Temporary Disability Benefits (TTD/TPD)

When a worker cannot work at all during recovery, temporary total disability pays two-thirds of the AWW, up to the state maximum, for the first two years of disability. If the injury occurred after July 1, 2015, the first three calendar days of disability are not paid unless the disability lasts longer than 14 days; those three days are then paid retroactively. Temporary partial disability applies when a worker returns to light duty at lower wages. In that case, the carrier pays two-thirds of the difference between the pre-injury and post-injury wages, also subject to the maximum.

Permanent Impairment and Permanent Total Disability

Once medical treatment is completed, a worker with a permanent impairment receives a scheduled award under New York's Workers' Compensation Law. The award is based on a percentage of impairment for the injured body part, multiplied by a set number of weeks. For example, a loss of an arm equals 312 weeks, and the hand equals 155 weeks; the specific per-week rate depends on the date of injury and the worker's average weekly wage, subject to the applicable maximum. Permanent total disability, where the worker can never return to any work, pays two-thirds of the AWW up to the maximum for life, but it is less common than scheduled awards.

Death Benefits

If a workplace injury causes death, surviving dependents receive weekly payments equal to two-thirds of the deceased worker's AWW, subject to the maximum. A burial allowance of up to $12,500 (adjusted periodically) is also available. The number of eligible dependents and their share of the award is determined under the law's priority rules, typically favoring a surviving spouse and minor children.

Key Numbers That Change Each Year

How the Average Weekly Wage Is Calculated

The AWW is based on the 52 weeks before the injury, using the earnings that actually flowed through the employer's payroll. This includes wages, overtime, tips, and the cash value of room and board provided by the employer. For workers with less than a full year of employment, the average is computed from whatever weeks are available. A worker who earned very little or who was a new employee may receive a minimum temporary disability rate, which is set each year and typically corresponds to 25% of the state average weekly wage.

What This Means for a New York Worker

A New York worker's exact check depends on the injury date, the AWW, the body part injured, and whether the disability is temporary or permanent. The formulas are fixed, but the results vary widely. An employee with a higher pre-injury wage and a scheduled loss will see a larger total payout over the weeks of the award, while a lower-wage worker may receive the minimum rate. The most reliable way to estimate a specific case is to calculate the AWW, apply the two-thirds rule, and compare it against the current annual maximums published by the Workers' Compensation Board.