New York Senate Bill S06376

New York 2025-2026 Regular Session

• Introduced: 3/12/25
• Refer: 3/12/25
• Refer: 1/7/26
• Report Pass: 4/21/26

Caption

Prohibits insurance carriers and employers from withholding certain benefits from injured workers based on a claim that such workers have voluntarily withdrawn from the labor market by not seeking alternate employment that their injury or illness does not preclude them from performing.

Summary

S06376 amends New York’s Workers’ Compensation Law to prohibit insurance carriers and employers from withholding, reducing, or conditioning benefits on an injured worker’s “attachment to the labor market,” meaning the worker’s obligation to show that they are actively seeking other employment. The bill adds a new subdivision stating that benefits otherwise due may not be denied on that basis, and it revises existing permanent partial disability provisions to remove language tied to proving ongoing labor market attachment. The bill also preserves and clarifies rules governing permanent partial disability awards, including maximum benefit-week caps tied to loss of wage-earning capacity, crediting of certain temporary disability payments, and procedures related to maximum medical improvement. It further strengthens post-benefit medical coverage by creating a presumption that medical services continue after indemnity benefits end, placing the burden on carriers, self-insured employers, or the state insurance fund to justify discontinuing or suspending those services, and directing the Workers’ Compensation Board to create an independent outside review process for such decisions.

Impact

If enacted, the bill would change how workers’ compensation claims are administered in New York by eliminating labor-market-attachment challenges as a basis for denying or reducing compensation benefits. It would affect injured workers receiving permanent partial disability benefits, as well as insurance carriers, self-insured employers, and the State Insurance Fund, by limiting a common defense used to cut off wage-loss benefits and by reinforcing continued medical coverage after indemnity benefits expire. The bill amends section 15 of the Workers’ Compensation Law and adds a new subdivision 10 to that section.

Sentiment

The available voting history suggests strong support in committee, with unanimous Senate Labor Committee votes of 13-0 and 12-0. The bill’s framing and amendments indicate a worker-protective approach intended to ensure that injured employees are not penalized for not seeking work they may be unable to perform because of their injuries. No committee transcript is provided, so the record here shows broad procedural support but no detailed debate.

Contention

The main point of contention is the elimination of the “attachment to the labor market” requirement, which carriers and employers may view as a safeguard against paying benefits to claimants who are not actively working or seeking work. Opponents of the change could argue it expands liability and reduces a tool for limiting claims, while supporters likely see it as preventing unfair denial of benefits to injured workers whose disabilities limit their ability to job-search. A secondary issue is the bill’s presumption of continued medical services and the new independent review process, which may raise concerns among insurers and employers about added costs and reduced control over benefit termination decisions.