Workers' Comp for Commercial Cleaning in New York (2026)

How workers' comp works for janitorial in New York

New York Workers' Compensation Law (WCL) §10 requires every employer to secure compensation for all employees. The state's rating bureau is the New York Compensation Insurance Rating Board (NYCIRB), which operates independently of NCCI and files New York-specific loss costs with the Department of Financial Services (DFS). Carriers apply their own approved loss cost multipliers (LCMs) to arrive at final rates. The New York State Insurance Fund (NYSIF) serves as the competitive state fund and insurer of last resort. New York's WC system is one of the most legally complex in the U.S., with mandatory employee notification requirements, a 7.1% New York State assessment surcharge on all premiums, and a schedule of statutory maximum and minimum benefits that reset each July 1.

Rating bureau and NYCIRB (New York)

The New York Compensation Insurance Rating Board (NYCIRB) — headquartered at 875 Third Avenue, New York, NY 10022 (nycirb.org) — files loss costs and rating values with DFS. On July 15, 2025, DFS approved a –13.2% overall loss cost decrease effective October 1, 2025 (R.C. 2633), the largest single-year decrease in recent New York WC history. Despite this decrease, New York's janitorial loss costs remain among the highest in the country due to high medical costs, litigation rates, and benefit levels.

Class code and rate (New York 2025–2026)

• Code 9030 — Building Service Contractor & Drivers (primary NY code for commercial janitorial contractors). Loss cost: $3.571 per $100 payroll (effective October 1, 2025; down from $4.07/$100 — a 12.3% decrease). Final rates = loss cost × insurer LCM (typically 1.30–1.60 for most NY carriers).
• Code 9014 — Exterminator & Drivers (in NY, code 9014 covers extermination and some janitorial operations). Loss cost: $3.268/$100 (effective October 1, 2025; NYCIRB Classification Digest). Note: this is a different use of "9014" than NCCI states — verify correct code with NYCIRB.
• Code 9028 — Building Operations. Loss cost: $2.45/$100 (for in-house building staff, not contractor janitors).
• Code 9026 — Building Operation Commercial (no dwelling). Loss cost: $3.32/$100.
• New York also charges a 7.1% New York State assessment on standard premium; terrorism ($0.029/$100) and catastrophe ($0.003/$100) surcharges apply.

Indemnity benefits (New York 2025–2026)

• Max weekly TTD/PTD: $1,222.42 for injuries 7/1/2025–6/30/2026 (= 2/3 × NYSAWW of $1,833.63; WCL §15[6]). Effective 7/1/2026: $1,281.50 (= 2/3 × 2025 NYSAWW of $1,922.25).
• Min weekly benefit: $325/week for injuries 1/1/2025–6/30/2026 (per WCL §15 minimum benefit schedule, transitioning to 1/5 of NYSAWW under 2023 legislation). Effective 7/1/2026: $384.45/week.
• Waiting period: 7 calendar days (first 7 days not compensated); first 7 days paid retroactively if disability exceeds 14 days (WCL §18).
• PPD scheduled benefits: up to 525 weeks for 95%+ earning capacity loss; duration scales down to 225 weeks for under 15% loss (WCL §15[3]).
• PTD: payable for life at maximum weekly rate.

Coverage requirements and exemptions

• Mandatory for all employers with 1 or more employees (WCL §10) — no minimum threshold.
• Sole proprietors and partners may voluntarily elect coverage (WCL §54[8]).
• Corporate officers of closely held corporations may waive coverage with Board approval.
• Independent contractor test: New York applies the Fair Play Act (WCL §§861–875) to construction workers, and a multi-factor common-law test elsewhere. For janitorial workers: New York's aggressive enforcement means cleaning workers directed by a contractor are almost always employees. Fair Play Act violations: first violation up to $2,500 per misclassified employee; second within 5 years up to $5,000 per employee.

Experience rating (New York)

New York uses NYCIRB's own experience rating plan — not the NCCI plan. The NYCIRB experience modification applies to policies with ≥$5,000 in expected losses (lower credibility threshold than NCCI). The modification formula compares actual losses to expected losses over the 3-year experience period, using primary and excess loss splits. New York's ARAP (Accident and Risk Assignment Program) — formerly called "the merit rating plan" — applies to smaller employers. Class 9030 janitorial contractors with 5–20 employees typically fall into ARAP or partial-credibility experience rating.

Officer/owner waivers

Under WCL §54(6), executive officers of corporations (president, secretary, treasurer) who own at least 10% of stock may waive WC coverage by filing Form DB-1 (waiver of coverage) with the Workers' Compensation Board. Sole proprietors and partners are excluded by default but may elect coverage. For LLCs, members are treated as employees unless they file a waiver with the WCB. Waivers must be renewed annually and recorded on all certificates of insurance.

Penalties for non-compliance

• Failure to insure (≤5 employees): criminal misdemeanor, fine $1,000–$5,000 (WCL §52[1](a)).
• Failure to insure (>5 employees): Class E felony, fine $5,000–$50,000 (WCL §52[1](a)).
• Civil penalty: up to $2,000 for each 10-day period of noncompliance (WCL §52[5]); by the time the first notice arrives, accrued penalties typically exceed $12,000.
• Second offense within 5 years: Class D felony, fine $10,000–$50,000 (WCL §52[1](b)).
• Stop-work order and debarment from public works contracts for 1 year (misdemeanor) or 5 years (felony) (WCL §52[6]).
• President, secretary, and treasurer of a corporation are personally liable for the business's failure to insure (WCL §52[4]).

Recent rate changes (2024–2026)

• October 1, 2024: NYCIRB approved loss costs; class 9030 at $4.07/$100.
• October 1, 2025: NYCIRB approved –13.2% overall loss cost decrease (R.C. 2633, DFS approval July 15, 2025); class 9030 reduced to $3.571/$100 (–12.3%); class 9014 to $3.268/$100. This was the largest annual decrease in recent New York WC history, driven by favorable claim frequency trends.
• 2025 minimum benefit legislation: Under legislation enacted in 2023, the minimum weekly benefit increases in stages; the 2025 minimum is $325/week (stage 2), rising to 1/5 of NYSAWW (approximately $384/week) on 7/1/2026.

Cross-references

• OSHA Requirements for Janitorial Services in New York
• Contractor Licensing Requirements in New York
• Janitorial Wage and Hour Laws in New York

Primary sources

• New York State Workers' Compensation Board (WCB)
• New York Compensation Insurance Rating Board (NYCIRB)
• WCB — Employer Violations and Penalties
• NYCIRB R.C. 2633 — October 1, 2025 Loss Cost Revision (–13.2%)
• BLS NAICS 561720 Injury Data

Authored by the Opora Editorial Team.