Compliance: Industrial Code Rule 59

Compliance: Industrial Code Rule 59

March 11, 2024

Four times a year the NYS Rating Board sends out citations to employers throughout the state for violations of Industrial Code Rule 59. Despite being in existence for over 20 years, the rule is often unheard of and confusing to many small business owners.

What exactly is Industrial Code Rule 59 (ICR 59)?

ICR 59 is a program in which companies that have a payroll over $800,000 and an Experience Modification Rating (EMR) over 1.20 are notified that they are required to have a workplace safety evaluation done by a certified consultant. 

What does ICR 59 entail?

A consultant is required to review a company's:

  • past claims;
  • safety policies and procedures;
  • training practices; and
  • the physical locations.

After the evaluation, the consultant writes a report that contains recommendations to improve workplace safety. The organization then has 6 months to comply. At the end of the compliance period, their insurance carrier will evaluate what they have done to comply and notify the NYSDOL of their compliance or non-compliance.

What if you don't comply with ICR 59?

The first year that an organization does not comply there is a 5% workers compensation penalty assessed, and that penalty increases by an additional 5% for each year of non-compliance.

Compliance timeline:

  • An employer has 30 days to find & hire a consultant. Friedlander employs a certified consultant or employers can search the NYS Database of approved consultants.
  • After finding & hiring a consultant, the organization has 10 days to notify the NYSDOL & their insurance carrier that they have received the notification & taken the first step in the process.
  • The consultant has 75 days to compile documentation, survey the facility & write the report.
  • Once the client has the report, they have 30 days to send the report to NYSDOL & their worker’s comp carrier.
  • After sending in the report, there is a 6-month period for the organization to work on the recommendations before the insurance carrier comes out for a compliance check.

Documents typically required for evaluation after receiving  an ICR 59 citation:

If you do not have some or any of these documents - don't worry - the consultant will recommend the implementation of whatever you might be lacking.

  • Loss runs for the last four policy periods (ask carrier or broker).
  • OSHA 300 logs for the last four calendar years.
  • Company safety program/policy/handbook.
  • Written workplace safety goals.
  • Statement about the organization’s commitment to safety.
  • Safety committee agenda, minutes, and sign-in sheets.
  • Workplace safety responsibilities and assignments (ex…who is responsible for training, inspections, housekeeping, etc.).
  • Safety training topics & documentation of completed training.
  • Written hazard reporting policy or procedure (how do employees report a hazardous issue?).
  • Accident investigation policy/form (preferably completed).
  • Inspection policy or inspection documents.
  • Emergency action plan(s).

Questions? Contact Ray Sullivan.