What General Contractors, Project Owners and Property Owners Need to Know about NY Labor Law
July 28, 2021
NY State is one of the toughest states to comply with business laws and regulations. Not only are the tax laws and statutory requirements some of the most stringent in the country, but we also have some of the strictest laws when it comes to worker’s rights and employer’s responsibilities. Often business owners believe that because they do not have employees that they do not have liability from the same types of claims that an employer might face in the case of an injured worker. In NY state you couldn’t be farther from the truth. The sole remedy of an employer is a worker’s compensation employer’s liability policy which statutorily protects the employer from being sued under any other liability. That’s where the property owner, project owner or the GC come in, after the injured worker calls Dewey Cheatum and How, they are advised that there are other “responsible parties” to access and may be seen as deep pockets. There is typically no such coverage afforded to those who do not have employees under a general liability policy unless that policy is endorsed to include these types of claims.
When it comes to people working on projects in which you have control you have a web of litigation land mines that are hard to navigate and hard to purchase risk transfer products without breaking the bank. The origination of these laws that affect owners without direct employees were enacted over 100 years ago and still persist today creating a legal environment heavily in favor of workers and their rights to be compensated adequately for injuries sustained while working for others.
Three Laws Employers Should Know About
The statutes in question are actually three different laws but are commonly referred to by several monikers such as “third party action-over”, the “scaffold law”, “fall from height”, or just plain “labor law.” The law refers to sections 200, 240 and 241 of the NY State labor law.
- Labor Law § 200 (the Safe Work Environment Statute) requires a reasonably safe work environment for all employees and others legally at the worksite. Employers must properly maintain, guard, and light the worksite, safely operate machinery, equipment, and other devices.
- Labor Law § 240(1) (the Scaffold, Ladder and Working at a Height Statute) has been interpreted by New York courts to impose a nondelegable duty to provide safety devices to protect against elevation-related hazards on construction sites. Project owners and general contractors are absolutely liable for any violation that results in an injury, regardless of whether the project owner or general contractor (GC) supervised or controlled the work.5 Further, the worker’s own negligence will not bar or reduce the worker’s recovery.
- Labor Law § 241(6) (the Construction, Excavation and Demolition Work Statute) imposes a nondelegable duty on project owners and GCs to keep workplaces safe from trip and slip hazards and other related hazards. A plaintiff seeking damages pursuant to this statute is not required to show that the project owner or GC exercised supervision or control over his worksite to establish a right of recovery. However, a violation under this statute, unlike a violation of Labor Law § 240(1), is only evidence of negligence on the part of project owner or GC. Absolute liability is not imposed by proof of a violation; therefore, the injured worker’s contributory and comparative negligence are considered viable defenses to a claim under this section
Responsible Parties
These laws allow an injured worker to collect workers compensation benefits from their employer as well as litigate against other “responsible parties.” These other “responsible parties” are subject to absolute liability, meaning common law negligence standards don’t apply. This is known as a third-party-over action, a type of action in which an injured employee, after collecting workers compensation benefits from the employer, sues a third party for contributing to the employee’s injury. Typically, the target of such suits are project owners or general contractors for damages such as:
- Lost Wages;
- Medical Expenses;
- Pain and suffering; and
- Any other damage, as the court may see fit.
These laws apply to employers, general contractors, property owners and their agents. A property owner includes any person with an interest in the property and any person who fulfills the role of owner by contracting to have work performed on the property for his or her benefit. This definition includes anyone who may have leased the property but retains the right to control how the work is to be performed on the property.
New York courts have consistently held that an entity is subject to Section 200’s duty of care if it exercises supervisory control over the work performed on the property. The courts have also clarified that merely monitoring the timing and quality of the work is not sufficient to establish control.
Good Defense needs Offense
The underlying purpose of these laws which were enacted over 100 years ago, is to ensure that construction workers injured on job sites receive fair compensation for the losses they suffer. Over the years, New York courts have broadened the scope of these statutes and adapted them to modern worksite dangers. At the same time, juries in the five boroughs have consistently awarded large verdicts to injured workers who allege violations of these laws. This confluence of factors has created unique challenges for risk transfer: insurance premiums are higher and beneficial coverage terms are harder to obtain. Even when you’re not doing work downstate you still can be subject to litigation; we have the same laws, just not the same judicial environment, YET.
Recommendations
- Use vetted contracts
- Seek the advice of council for contract agreements
- Know what is in the contract and what each requirement means
- If you choose to seek liability insurance covering this type of action speak with your trusted insurance advisor early on and allow adequate time for marketing
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If you recently received notice that your Medicare plan, or Medicare Advantage plan, is being discontinued, you’re not alone. Across the country (and right here in New York), insurers are scaling back or exiting less profitable markets ( Kiplinger ). While this can feel stressful, there are steps you can take to make sure your coverage doesn’t lapse and to find a better plan for your health and budget. Why Are Plans Being Discontinued? A mix of financial pressure, federal reimbursement changes, and rising health costs is driving insurers to reduce their Medicare Advantage footprints: Some major insurers are cutting back or exiting entire counties. For example, UnitedHealth announced it will discontinue its Medicare Advantage presence in 109 U.S. counties in 2026, according to Reuters . Local carriers in New York are also making changes: MVP is dropping several plans, and CDPHP is eliminating certain drug-coverage options, the Times Union explains . These shifts are happening alongside tighter government funding and increased regulatory strain. Because insurers must absorb the extra cost of covering benefits while meeting regulatory caps (for example, on prescription drug out-of-pocket limits), some plans become financially unsustainable and are discontinued ( the Kaiser Family Foundation ). Steps to Take if Your Plan Is Discontinued Here’s how to act so you don’t lose coverage: 1. Review the notice you received carefully Your insurer is required to send you a non-renewal or discontinuance notice. It often includes deadlines, whether you can enroll through a Special Enrollment Period (SEP), and what options you have. 2. Note the relevant enrollment period The Annual Enrollment Period (AEP) runs October 15 to December 7, 2025 , during which you can switch Medicare Advantage or Part D plans. If your plan was discontinued, some notices allow you to select a new plan until December 31 without penalty. In limited cases, you may qualify for a Special Enrollment Period (SEP) following the discontinuation. 3. Research your options early Don’t wait until the last minute. Compare plans available in your area. Key things to look at: Provider networks: Will your doctors still be covered? Drug formularies: Does the plan cover your medications and at what cost? Premiums, deductibles, and out-of-pocket max: These can vary significantly. Benefit trade-offs: Some plans reduce supplemental benefits (vision, dental, wellness perks) when trying to maintain financial viability. 4. Enroll in the new plan Submit your enrollment by the relevant deadline (typically December 7 for the Annual Enrollment Period (AEP). However, If your plan was discontinued, you may have until December 31 to choose a new one without penalty). Make sure the new plan starts January 1 to avoid coverage gaps. 5. If your plan wasn’t discontinued, still review Even if your current plan remains active, benefits, networks, and costs often change each year. It’s wise to compare alternatives anyway, especially after insurer shake-ups. Why Timing & Support Matter Delays cost you: Failing to enroll by deadlines could mean losing drug coverage or being locked into a less ideal plan. Support can ease the burden: Licensed agents can help you compare side-by-side, explain trade-offs, and guide you through enrollment. You deserve the best match: Everyone’s health and financial needs differ. Don’t settle for the first available option unless it truly fits. How Simco Can Help At Simco, we understand the stress of sudden plan changes. Our licensed insurance advisors are ready to: Help you interpret your discontinuance notice Compare plan options available in your area Assist with enrollment paperwork Explain benefit trade-offs and cost implications You don’t have to navigate this alone. Whether your Medicare Advantage plan was discontinued or you’re simply exploring your options, our team is here to support you. Contact us today to schedule a 1-on-1 consultation, and let us help you find the plan that keeps you covered and confident in 2026 and beyond.
At Simco, we’re proud to be a trusted isolved Network Partner , which means the Human Capital Management (HCM) technology we deliver to our clients is powered by isolved People Cloud™. And now there’s even more reason to celebrate: isolved has been recognized as the #1 SMB HCM provider across the entire employee lifecycle in Sapient Insights Group’s 28th Annual HR Systems Survey. This annual survey is one of the most respected benchmarks in the HR technology industry. With feedback from over 4,500 HR professionals, Sapient Insights captures the real voice of the customer by evaluating vendors across two critical areas: User Experience (UX) and Vendor Satisfaction (VS). isolved earned an impressive 38 badges this year, the most awarded SMB vendor for the second year in a row, and ranked #1 in 13 different SMB categories . Breaking Down the Results isolved’s recognition wasn’t limited to a single function. It spanned the entire employee lifecycle, covering everything from payroll and benefits to recruiting and workforce management. Highlights from the survey include: Payroll — Ranked #1 in both User Experience and Vendor Satisfaction for SMBs Core HR — #1 in Vendor Satisfaction Benefits — #1 in User Experience Recruiting — #1 in both User Experience and Vendor Satisfaction Time & Attendance — #1 in both User Experience and Vendor Satisfaction Skills Management — #1 in User Experience Rewards & Recognition — #1 in User Experience In addition, isolved placed in the Top 5 across numerous other categories like onboarding, learning, performance management, workforce scheduling, and contingent management. What does this mean? isolved’s solution isn’t just strong in one area, it’s consistently delivering across all the areas that matter most for small and mid-sized businesses. Why This Matters for SMBs Today’s SMBs face more challenges than ever. Recruiting is competitive, employee expectations are higher, and compliance requirements grow more complex every year. Business owners often find themselves piecing together multiple vendors to handle payroll, HR, benefits, and insurance, adding complexity and risk. isolved’s sweep across the Sapient Insights report shows that SMBs no longer have to choose between great payroll software and effective talent tools, or between benefits management and workforce scheduling. With isolved, the technology already covers the full employee lifecycle, validated by real-world HR pros. From Recognition to Results isolved’s 38 badges and top rankings validate what our clients experience every day: Accuracy and trust in payroll with fewer errors and compliance risks. Simplified benefits administration that keeps employees happy and businesses competitive. Recruiting and onboarding tools that make hiring more effective. Time and scheduling solutions that align workforce needs with operational efficiency. These results aren’t just about technology; they’re about enabling SMBs to compete, thrive, and support their people better. The Simco Advantage: More Than Just Software Here’s the ultimate key: technology is only half of the solution. Technology is powerful, but the real impact comes from how it’s put into practice. At Simco, we go beyond simply providing software. We deliver a fully integrated HCM and advisory solution that ties every part of workforce management together. Here’s what sets us apart: One Point of Contact: A dedicated resource who understands your business and ensures your HCM, HR, benefits, insurance, and retirement services work in sync. All-in-One Partner: From payroll and HR to insurance and 401(k) plans, we eliminate the hassle of juggling multiple vendors. Advisory + Optimization: We don’t just implement technology. We guide you in using it to strengthen compliance, employee engagement, and growth strategies. As your business grows, your needs change. By pairing isolved’s award-winning technology with Simco’s hands-on expertise, we help you stay ahead, operate more efficiently, and build better employee experiences. Key Takeaways isolved’s recognition in the Sapient Insights report shows that SMBs have access to enterprise-grade HR technology tailored for their needs. And with Simco as your partner, you’ll never have to choose between the strength of your platform and the quality of your service; you’ll have both. Want to see how Simco + isolved can streamline your payroll, HR, benefits, and more? Contact us today.
In today’s digital-first world, small and mid-sized businesses are just as vulnerable, if not more so, than large corporations when it comes to cyberattacks. Limited budgets, fewer in-house IT resources, and the perception of being “too small to target” often leave business owners dangerously exposed. The reality? Hackers don’t discriminate based on size; they look for the easiest entry points. Here are the top five mistakes businesses make, how to avoid them, and what steps you can take today to protect your company, your employees, and your bottom line. 1. Relying on Weak or Outdated Passwords Passwords are often the first line of defense, and also the weakest. Too many businesses rely on simple or reused passwords that can be cracked in seconds with modern tools. The Modern MFA Landscape While passwords remain standard, multi-factor authentication (MFA) has become the new baseline. However, how you implement MFA matters: Avoid email for MFA codes. If a phishing attack compromises an employee’s inbox, bad actors can intercept the code and access sensitive systems. SMS is better but not bulletproof. Text messages provide an extra layer of security but can still be intercepted. Authenticator apps are the gold standard. Tools like Authy, Microsoft Authenticator, or Google Authenticator create time-based one-time codes that aren’t tied to email or SMS. Forward-looking companies are also exploring passwordless authentication, a model that reduces dependence on static credentials altogether. Until then, tightening password hygiene and upgrading MFA methods should be immediate priorities. 2. Overlooking Employee Training Even the most advanced cybersecurity tools can’t stop an employee from clicking a malicious link or downloading infected files. Human error remains the biggest vulnerability in most organizations. What Employees Need to Know Instead of broad, once-a-year sessions, ongoing training should focus on real-world risks employees face daily. Consider including: How to spot suspicious links and attachments Why “urgent” or “CEO fraud” emails are red flags Safe internet practices for remote or hybrid workers How to report suspicious activity without fear of blame Building a Culture of Cyber Awareness Cybersecurity isn’t just an IT issue; it’s a company-wide culture. Leadership should model secure behavior and celebrate employees who catch threats. Over time, security becomes second nature rather than an afterthought. 3. Neglecting Regular Software Updates Software vendors release updates for a reason: to fix vulnerabilities. Delaying or ignoring these updates gives hackers a direct pathway into your systems. The Risk of Outdated Systems Running outdated operating systems, browsers, or applications often leaves “open doors” attackers can exploit. Businesses that don’t patch quickly enough have been at the center of major breaches. Automating updates or assigning a designated IT contact for patch management ensures vulnerabilities are closed before they can be exploited. Even for smaller businesses without dedicated IT staff, outsourced providers or managed IT services can fill this role affordably. 4. Failing to Prepare an Incident Response Plan (IRP) Too many businesses wait until a breach happens to figure out how to respond. By then, panic sets in, time is lost, and the financial damage increases. Why an IRP Matters An Incident Response Plan is essentially a playbook for what your business will do in the first 24–72 hours after an attack. It should outline: Who is responsible for containment and communication Steps for isolating affected systems Legal or regulatory reporting requirements How to restore backups and resume operations Tip: Run Cybersecurity Fire Drills Just like fire drills, businesses should run simulated cyber incidents. Testing your IRP helps employees understand their roles and uncovers gaps before a real attack occurs. 5. Assuming Insurance Alone Is Enough Some business owners mistakenly believe their general liability insurance will cover cyber-related losses. Unfortunately, most policies exclude data breaches, ransomware, or social engineering scams. The Role of Cyber Liability Insurance Cyber liability insurance fills these gaps by covering costs like forensic investigations, customer notifications, legal fees, regulatory fines, and even ransom payments (where legal). For small businesses, this coverage can mean the difference between survival and bankruptcy after a breach. But insurance should never replace prevention. Instead, think of it as a financial safety net that complements strong security practices, not one that replaces them. Click here to learn more about how Simco’s Commercial Insurance team can help protect your business with cyber and data breach coverage and beyond. Secure Your Business for the Future Cybersecurity is no longer optional for businesses; it’s a core part of protecting your employees, customers, and reputation. By addressing these five common mistakes, you’ll not only reduce your risk of an attack but also build trust with clients who want assurance that their data is safe in your hands. Taking proactive steps now, including strengthening authentication, investing in training, creating an IRP, and supplementing with cyber liability insurance, can save untold amounts of money, stress, and reputational damage later.
