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REFORMING LABOR LAW 240 / 241 WILL HELP INCREASE BUSINESS IN NEW YORK STATE
Sections 240 and 241 of the New York State Labor Law are commonly referred to as the "Safe Place to Work Law" or the "Scaffolding Law." These sections of law establish an "absolute liability" standard on any contractor or property owner for a fall from any height by an employee. Under an absolute liability standard there is no consideration of fault or negligence and the contractor or building owner is held completely responsible, regardless of fault. This is over and above any Workers' Compensation benefit for which the injured worker may be eligible. This statute, which is the only such law remaining in the United States, pre-dates our Workers Compensation Laws and circumvents the sole remedy doctrine of workers compensation. Further, Section 240 deprives owners and contractors of their right of defense against such claims. The courts have begun to narrow the scope of this law as they recognize unfairness
Insurance on construction projects for both owners and contractors has become increasingly expensive and the market for this coverage severely restricted. This law has just about eliminated the market for contractors' insurance in New York. Coverage that is available is prohibitively expensive. Lack of coverage is preventing construction projects from proceeding, costing New York State jobs. When coverage can be obtained, the cost of construction is needlessly driven up. In these difficult economic times, any law driving up business costs and preventing, job growth needs to be carefully examined.
Many of the suits brought under Sections 240 and 241 shifted from the Employers Liability section of the workers' compensation policy to the contractual liability section of the general liability policy because of the 1996 workers compensation reforms that redefined "grave injuries". This shift has exacerbated the affordability and availability of general liability insurance.
With New York being the only state with this type of law on the books, the State is a less desirable place for doing business because of added costs and insurance availability problems.
ACTION NEEDED:
The absolute liability language of the Labor Law should be replaced with a more reasonable standard similar to that found in Section 241 (6) of the Labor Law which imposes liability on contractors and owners for failing to provide a safe place to work. It is imperative that a reasonable negligence standard be established and that a realistic definition of a "fall from a height" is established.
These standards would provide benefit to all parties without impairing an injured worker's right to seek recovery for a legitimate claim, while at the same time improving economic development in our State
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