This is an important reminder about the New York State Construction Industry Fair Play Act that went into effect on 10/26/10.

The law creates new standards for determining whether a worker in the construction industry is an employee or an independent contractor for Workers’ Compensation purposes and provides new penalties for employers who fail to properly classify their workers. The attached New York Department of Labor Fact Sheet explains the new standards. Note also that the law specifically states that a sole proprietor’s, partnership’s or individual’s act of securing workers’ compensation insurance is not binding on the determination of whether a worker is an employee or independent contractor. Any questions regarding the new law should be directed to the State Labor Department, at 1-866-435-1499.

NYS Department of Labor's Fair Play Fact Sheet