One of the biggest changes to the New York Workers’ Compensation Law starting in 2024 is the modification of the minimum rate. Since 2013, the minimum rate an injured worker could receive in lost wages in any Workers’ Compensation claim for an injury occurring after 5/1/2013 has been $150.00 per week. This means that an injured worker could never be paid less than $150.00 per week if out of work.
For example, an injured worker with an Average Weekly Wage of $500.00 per week would receive 2/3, or $333.33, if out of work with a 100% disability. If such worker was found to have a 33.3% disability, the rate would be $111.00 (33.3% of the 100% rate). However, because of the minimum rate statute, the injured worker’s rate would default automatically to the $150.00 per week minimum rate.
However, due to inflation and other economic factors, it has become increasingly difficult, if not impossible, for injured workers to survive off of $150.00 per week. In response, Governor Kathy Hochul signed legislature on 9/6/2023 that increases the minimum weekly benefit rate for injuries occurring after 1/1/2024. For 2024, the minimum benefit rate is $275.00 per week. Starting in 2025, the minimum rate will increase to $325.00 per week. Starting 7/1/2026 and each July 1st thereafter, the minimum rate will be indexed to reflect 1/5 of the New York State Average Weekly Wage.
This is a huge victory for injured workers struggling to pay their bills while recovering from a work-related injury, and we commend Governor Hochul for implementing such a vital change to the Workers’ Compensation system.