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About
New York is the only state in the country with an absolute liability standard that holds employers entirely responsible for gravity related injuries and does not take the activities of workers at construction sites into account. As a result, New York construction projects face insurance costs in New York that are 2-5 times higher than other states.
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New York State’s outdated law enacted in 1885 has made it more expensive to build the housing, roads, bridges, tunnels, schools, and other critical infrastructure we need to keep New York building.
The Facts
The scaffold law increases total construction costs between 5 and 10%.
$785 million
$785 million
1 out
of 50 states
use an absolute liability standard
2X
Insurance cost
in New York compared to other states
$785
million
annually in added public costs for construction
employment
6%
in construction in New York compared to pre-pandemic levels
million
Added annually to public construction budgets
Added annually to public construction budgets
It’s Time to Take Action
Despite the overwhelming evidence that New York’s liability law raises construction costs; the state legislature in Albany has for many years turned a blind eye to this problem at the behest of special interests.
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Since Albany refuses to act, the federal government needs to protect taxpayers and reduce unnecessary costs on federally funded projects.
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The recently introduced Infrastructure Expansion Act aims to reform New York’s antiquated liability law, reduce taxpayer costs, limit wasteful spending, and promote more construction and jobs in our state.
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CHUBB/AON Report:
Workers' compensation claims over $5,000 in New York are nearly 85% higher than in other states
Over 70% of New York workers' compensation losses involve companion Labor Law § 240 claims
New York's bodily injury general liability claim frequency is more than 12 times higher than the national average
New York Workers Aren’t Safer
There is no evidence that construction sites in New York are safer than other states. Rather than make construction sites safer, New York’s law is leading to an epidemic of staged accident fraud and abuse that is raising costs for all New Yorkers.
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When Illinois repealed its absolute liability law in 1995 construction fatalities actually declined.
Press
Our Supporters
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Testimonies
“Representative Langworthy's bill gives us a direct path to lowering costs on federally funded projects. Insurance costs in New York City are unreasonably high. Bringing down costs will mean more construction; more construction means more union construction jobs. Let's get this much needed legislation across the finish line and bring more construction and construction jobs to New York,”
-Elizabeth Crowley, President and CEO, Building Trades Employer Association.
“One of the main drivers of the high cost of construction in New York City is our antiquated Scaffold Law, which serves to protect special interests rather than any jobsite the law purportedly makes safer. Rep. Langworthy’s bill takes this outdated law head on, and if passed will allow our city to focus resources on the projects that matter, rather than increased insurance premiums and lawsuit settlements. Driving costs down and making New York City more affordable requires bold action at all levels, and Rep. Langworthy’s proposed legislation is a strong step in the right direction,”
-James Whelan, President, Real Estate Board of New York.
“Congressman Langworthy’s bill is a long-overdue step toward restoring fairness and affordability in New York’s construction industry. The Scaffold Law’s absolute liability standard, which is unique to New York, inflates insurance costs by as much as 7%, directly driving up the price of affordable housing and infrastructure statewide. Reforming this outdated law is not just common sense, it’s essential to addressing our affordability crisis and ensuring that coveted federal dollars are spent building homes and communities, not fueling a broken legal system,”
- New York State Association for Affordable Housing.
“New York is the most expensive city in America, with the high cost of construction being a major contributor. Local legislators have been unwilling to override special interests to deal with our affordability crisis. We support the legislation introduced by Representative Langworthy that promises to impose needed fiscal discipline that we cannot seem to achieve on our own,”
-Kathryn Wylde, President and CEO, Partnership for New York City.