May

Big I New York meeting with Rep. Nick Langworthy in Washington, D.C. to discuss the impact of Labor Law 240/241 on the New York insurance marketplace. (from left, Ashley Engl, Travis Wattie, Doug Benz, Rep. Langworthy, Patrick Erickson, Lisa Hussainov, Kristin McNally, and Kate Sellers.

 

Big I New York's efforts to spur congressional action on the state's “scaffold law" bore fruit this week when Congressman Nick Langworthy (NY-23) introduced the Infrastructure Expansion Act (H.R. 3548) in the U.S. House of Representatives. The bill would modify the law's effects on construction projects receiving federal funding.

Big I New York has for many years urged state lawmakers to act on the law. However, we have also worked closely with members of the U.S. Congress to pursue legislation that would help address the considerable market challenges presented by this outdated law. Rep. Langworthy's bill would permit owners and contractors to raise a worker's comparative negligence as a defense against a lawsuit over an injury. This ability would apply to claims involving gravity-related injuries on projects receiving federal financial assistance, whether directly or indirectly.

Rep. Langworthy's official announcement featured Big I New York's support:

“New York's outdated labor law is a drag on economic progress and a hidden tax on every resident and business in the state," said Kelly Gonyo, Chair of the Board, Big I New York.

“Nowhere is the damage more visible than in the insurance market, where the so-called 'Scaffold Law' has made general liability coverage increasingly unaffordable—and in some cases, completely unavailable. Ask any insurance agent, and they'll tell you about small contractors walking away from work they can't insure, taxpayers footing the bill for skyrocketing public project costs, and affordable housing providers forced to delay critical safety upgrades just to afford their premiums. This law is not only outdated—it's actively harming communities across New York.

We applaud Representative Langworthy for taking a bold stand on this issue and leading the charge for common-sense reform. Fixing this broken statute is essential to restoring fairness, affordability, and functionality to New York's insurance marketplace."

This effort was a top priority for attendees of the Big “I" Legislative Conference in Washington, D.C. last month, which included a meeting with Rep. Langworthy. Then-Congressman John Faso introduced the original version of the bill in 2017. Big I New York is committed to building support for H.R. 3548. This may include a grassroots advocacy campaign in the months ahead.

More about the Scaffold Law:

The scaffold law – New York Labor Law Sections 240(1) and 241(6) – imposes “strict liability" for worker injuries on construction project owners, contractors, and those with authority to act on their behalf. This means that courts automatically hold these parties liable for injuries that arise even indirectly from violations of those sections of the law. These parties have few defenses in court, even where the worker may have contributed to the injury.

The laws date back to the 19th century. More than a century ago, the state legislature amended them to prevent defendants from raising the injured worker's own negligence as a factor in determining who was liable for the accident. New York's highest court ruled almost 80 years ago that defendants could not cite the worker's contribution to the accident. Subsequent decisions have permitted defendants to escape liability only where the worker's actions were the sole immediate cause of the accident.

Liability insurance carriers have paid large damage awards and settlements under these laws. This has made liability coverage for construction contractors increasingly difficult to obtain and extremely expensive. In fact, the New York State Department of Financial Services permits excess line brokers to obtain this coverage from non-admitted insurers without having to obtain the standard three declinations from admitted carriers.

State taxpayers end up bearing those costs for large public projects such as the replacement of the old Tappan Zee Bridge from 2012 to 2018. The insurance industry, property owners, and contractors' groups have long called for repeal or reform of the scaffold law.

More information about this law is available from the Scaffold Law page in the Answer Center of our website. ​