Henry Kaye
Talking Points
New York State Labor Law Sections 240 and 241 (a)
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High-cost lawsuits threaten to drive construction companies and property owners out of business and people are losing jobs because of New York State's Labor Law Sections 240 and 241.
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These laws have caused skyrocketing litigation over accidents at construction work sites. (The prevalence of television advertisements soliciting such cases is testimony to the way these laws work.) They hold general contractors solely liable for a worker's injury and preclude an effective defense, even in the event of negligence on the part of the employee.
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Because of New York state's unique labor law, contractors and other businesses are in danger of losing, or have already lost, their insurance
coverage. Reforms need to be made to allow property owners and businesses to procure and retain proper insurance policies, which will allow them to retain their employees and save jobs.
New York is the only state that encourages lawsuits against general
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contractors and site owners even if an employee recklessly causes injury to himself.
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The state's workers' compensation system already provides medical treatment and wage-loss benefits to injured workers, regardless of fault. If, on top of that, businesses are absolutely liable for huge awards in accidents such as falls from ladders and scaffolding, insurance companies will exclude such accidents or refuse to insure these businesses at all. Without coverage for labor lawsuits, they face financial ruin.

Reforms need to be made to allow all parties to have the protection they deserve.