NY Trapped at Work Act: New Liability Risks Beyond Workers’ Comp

New York’s Trapped at Work Act Expansion Impacts Workers’ Comp Exclusivity and Liability

  • New York’s updated Trapped at Work Act establishes a private right of action for employees subjected to hazardous exit obstructions. 
  • This legislation allows workers to bypass traditional workers’ compensation exclusivity by seeking civil damages for injuries resulting from locked or blocked emergency doors. 
  • The law introduces mandatory safety training requirements and increases civil penalties for non-compliance to $50,000 per violation. 
  • These amendments create new legal liabilities for employers regarding workplace safety and emergency evacuation protocols.

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Mississippi Clarifies Workers’ Compensation Status for Portable Benefit Contributors

  • Mississippi House Bill 1072 establishes a framework for hiring parties to contribute to portable benefit accounts for independent contractors without establishing an employer-employee relationship. 
  • These voluntary contributions cannot be used as evidence to reclassify workers for state workers’ compensation coverage requirements. 
  • The legislation protects businesses from being forced to provide traditional workers’ comp benefits based solely on these contributions. 
  • These provisions aim to provide legal clarity regarding worker status and corporate liability.

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New Jersey Policy Report Examines Independent Contractor Classification Standards

  • A new report from the New Jersey Business & Industry Association examines the “ABC test” used to determine worker status and eligibility for benefits. 
  • Proposed regulatory changes would reclassify thousands of independent contractors as employees, triggering mandatory workers’ compensation coverage requirements. 
  • The analysis identifies potential increases in insurance premiums and litigation risks for businesses currently utilizing gig and freelance labor. 
  • These findings address the legal shift toward a presumption of employment for insurance liability purposes. 

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