The Lovell Safety Management Executive Team
In 2024, the New York State Legislature passed four workers’ compensation bills that could reshape how claims are managed. Two of these bills were signed into law by Governor Hochul, and two were vetoed. Construction companies, which already operate in high-risk environments, should pay close attention to these changes, especially as they affect claim costs, mental health claims, and treatment protocols.
1.Signed into Law: Limited Mental Stress Claims Expansion (A.5745/S.6635, amended by A.1677/S.0755)
Governor Hochul signed this bill on December 6, 2024, with chapter amendments finalized in January 2025. It expands eligibility for workers’ compensation mental stress claims but only for specific psychiatric diagnoses.
What Changed?
Previously, only police officers, firefighters, and EMTs could file mental injury claims without showing their stress was “greater than” that of a similar coworker. Now, all employees, including those in construction, will be eligible to file a mental stress claim (only in mental-mental injury claims)—as long as their diagnosis fits into one of three psychiatric conditions:
• Post-Traumatic Stress Disorder (PTSD)
• Acute Stress Disorder
• Major Depressive Disorder
To qualify for benefits the employee must prove that:
• The stress arose out of an extraordinary work-related stress that is attributable to a distinct work-related event or series of events that are:
• Directly related to employment and
• Occurring during the performance of the employee’s work duties
Impact on Construction
Construction workers frequently face traumatic events: serious injuries, falls from heights, or fatal accidents. This new law may increase:
• Claims related to mental health after job site incidents.
• Challenges in disputing those claims due to the now-subjective stress threshold.
• Length and complexity of claims, potentially delaying return-to-work timelines.
Recommendation: Immediately investigate and report mental stress claims to Lovell. The new standard applies to specific mental claims and the old standard of the “stress being greater than that of a similar worker” remains in effect for other types of mental stress claims. Legal counsel at Lovell/NYSIF will determine which standard is applicable based on the facts of the case. Train field supervisors to document traumatic events with pertinent information. Strengthen mental health resources for workers and ensure HR is prepared to handle these claims sensitively but rigorously.
2. Signed into Law: Occupational Therapy & Physical Therapy Assistants Now Allowed to Treat Claimants Governor Hochul signed this long-standing bill on September 27, 2024. It authorizes licensed occupational and physical therapy assistants to treat injured workers under supervision of licensed physical therapists and occupational therapists.
What Changed?
Previously, New York law only allowed licensed OT/PT providers to treat injured workers. This bill now permits OT/PT assistants to perform treatment, so long as they work under the supervision of an authorized OT/PT.
Impact on Construction
Many injured construction workers need some form of physical rehabilitation. This change:
• Should improve therapy accessibility.
• Is not expected to increase claim costs significantly, as assistants are already commonly used in comp cases.
3. Vetoed: Out-of-Network Pharmacy Access (A.1219-A/S.1974-A)
This bill would have allowed injured workers to bypass the employer’s designated pharmacy network under certain conditions. Governor Hochul vetoed the bill on December 13, 2024.
Why Was It Vetoed?
The Governor cited:
• Increased litigation over “qualifying” conditions.
• Delays in benefit delivery due to added bureaucracy.
• A rollback of pharmacy cost savings won in the 2007 comp reforms.
Some examples that would have allowed workers to use non-network pharmacies included:
• Delays of more than 72 hours in receiving prescribed meds.
• Denial of reauthorization requests.
• Disputes between treating physicians and IMEs.
Instead of the bill, the Workers’ Compensation Board (WCB) issued new regulations, clarifying when a worker may use a non-network pharmacy at the end of 2024, providing a 60-day comment period and then based on comments, finalization of the new regulations.
Impact on Construction
The veto preserves critical cost controls for employers and carriers. Most construction employers in a Lovell Safety Group will not see major changes as NYSIF already provides first-fill prescriptions pending establishment or acceptance of the claim.
4. Vetoed: Medical Treatment Guidelines Rollback (A.6832-A/S.6929)
This bill was vetoed on November 22, 2024, and would have fundamentally altered how treatment is approved in NY workers’ comp.
What the Bill Would Have Done
• Undermined the Medical Treatment Guidelines (MTGs) by letting providers bypass them.
• Eliminated the Prior Authorization Request (PAR) process.
• Forced carriers to rely on costly Independent Medical Exams (IMEs) for treatment reviews which may delay treatments.
Why It Was Vetoed?
Governor Hochul argued the bill would:
• Lead to over-treatment and questionable procedures.
• Increase litigation and delay care.
• Undo years of reform aimed at improving outcomes and lowering costs.
Impact on Construction
The veto protects construction employers from:
• Skyrocketing treatment costs.
• Legal disputes over unnecessary
or non-evidence-based care.
• System abuse seen prior to MTG
and PAR implementation.
Bottom Line for Construction Employers
The 2024 legislative session brought both relief and risk for New York construction firms in 2025. While some protections were preserved through vetoes, the signed mental stress bill opens the door to more complex, subjective claims.
Key Takeaways:
• Expect more mental stress claims tied to specific traumatic events, especially after serious job site incidents.
• OT/PT assistants can now legally assist in the treatment of injured workers, potentially speeding up recovery.
• Pharmacy access rules are evolving but the cost-saving structure remains in place for now.
• The veto of Medical Treatment Guidelines (MTG) rollbacks is a win for employers concerned about runaway treatment costs.
The Governor also passed two workers’ compensation bills in her Budget that would expand access to treatment. Those bills will allow for residents and fellow physicians in a Graduate Medical Program to treat claimants and permit carriers to pay for medical treatment pending a decision on compensability.
Lovell Safety Management closely monitors legislative developments, actively working to reduce the impact of potential negative changes on the members of our five construction and eight general industry workers’ compensation safety groups. Our programs are designed to return profits to members in the form of dividends, and to date, Lovell safety group members have received over $1.28 billion in dividend savings. The 2025 legislative session closed in mid-June, and we will provide a full update on any new developments or additional legislative changes in early 2026.
In summary, the 2024 legislative session brought both relief and risk for New York construction firms in 2025. While some protections were preserved through vetoes, the signed mental stress bill opens the door to more complex, subjective claims. For any questions regarding workers’ compensation and the legislation, please contact Lovell at 1-800-556-8355.
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