LAWS OF NEW YORK, 1998
CHAPTER 439
The general municipal law is amended by adding a new section 125 to read as follows:
125. ISSUANCE OF BUILDING PERMITS. NO CITY, TOWN OR VILLAGE SHALL ISSUE A BUILDING PERMIT
WITHOUT OBTAINING FROM THE PERMIT APPLICANT EITHER:
1. PROOF DULY SUBSCRIBED THAT WORKERS’ COMPENSATION INSURANCE AND DISABILITY BENEFITS
COVERAGE ISSUED BY AN INSURANCE CARRIER IN A FORM SATISFACTORY TO THE CHAIR OF THE WORKERS’
COMPENSATION BOARD AS PROVIDED FOR IN SECTION FIFTY-SEVEN OF THE WORKERS’ COMPENSATION LAW
IS EFFECTIVE; OR
2. AN AFFIDAVIT THAT SUCH PERMIT APPLICANT HAS NOT ENGAGED AN EMPLOYER OR ANY
EMPLOYEES AS THOSE TERMS ARE DEFINED IN SECTION TWO OF THE WORKERS’ COMPENSATION LAW TO
PERFORM WORK RELATING TO SUCH BUILDING PERMIT.
Implementing Section 125 of the General Municipal Law
1. General Contractors -- Business Owners and Certain Homeowners
For businesses and certain homeowners listed as the general contractors on building permits, proof that they are in
compliance with Section 57 of the Workers’ Compensation Law (WCL) is ONE of the following forms that indicate that
they are:
♦ insured (C-105.2 or U-26.3),
♦ a Board-approved self-insured employer (SI-12), or
♦ are exempt (WC/DB-100),
under the mandatory coverage provisions of the WCL. Any residence that is not a 1, 2, 3 or 4 Family, Owner-occupied
Residence is considered a business (income or potential income property) and must prove compliance by filing one of the
above forms.
2. Owner-occupied Residences
For homeowners of a 1, 2, 3 or 4 Family, Owner-occupied Residence, proof of their exemption from the mandatory coverage
provisions of the Workers’ Compensation Law when applying for a building permit is to file Form BP-1.
♦ Form BP-1 shall be filed if the homeowner of a 1, 2, 3 or 4 Family, Owner-occupied
Residence is listed as the general
contractor on the building permit, and the homeowner:
◊ is performing all the work for which the building permit was issued him/herself,
◊ is not hiring, paying or compensating in any way, the individual(s) that is(are) performing all the work for
which the building permit was issued or helping the homeowner perform such work, or
◊ has a homeowner’s insurance policy that is currently in effect and covers the property for which the building
permit was issued AND the homeowner is hiring or paying individuals a total of less than 40 hours per week
(aggregate hours for all paid individuals on the jobsite) for the work for which the building permit was issued.
♦ If the homeowner of a 1, 2, 3 or 4 Family, Owner-occupied
Residence is hiring or paying individuals a total of 40
hours or MORE in any week (aggregate hours for all paid individuals on the jobsite) for the work for which the
building permit was issued, then the homeowner may not file the “Affidavit of Exemption” Form BP-1, but shall either:
◊ acquire appropriate workers’ compensation coverage and provide appropriate proof of that coverage on forms
approved by the Chair of the NYS Workers’ Compensation Board to the government entity issuing the
building permit (Form C-105.2 or Form U-26.3), OR
◊ have the general contractor, performing the work on the 1, 2, 3 or 4 family, owner-occupied residence
(including condominiums) listed on the building permit, provide appropriate proof of workers’ compensation
coverage, or proof of exemption from that coverage on forms approved by the Chair of the NYS Workers’
Compensation Board to the government entity issuing the building permit.
BP-1 (9-07) Reverse www.wcb.state.ny.us
