Governor Hochul Secures Protections for Workers as Part of FY27 Budget

Governor Kathy Hochul today announced a series of measures to protect New York workers as part of her FY27 Budget. The measures will bolster wage theft investigations and help hold bad actors accountable, increase access to medical care for injured workers, bolster recruitment and retention in the public sector and crack down on workers' compensation fraud to help protect worker wages and benefits.

"New York workers are the backbone of our economy and the lifeblood of our communities," Governor Hochul said. "That's why I am taking steps to combat wage theft, improve access to medical care, enhance recruitment and retention and put money back into the pockets of hardworking families. In this Budget, we are delivering real wins to workers whose efforts keep New York moving forward."

Combating Wage Theft

An honest day's work deserves an honest day's pay, and employers that cheat New Yorkers out of their hard-earned wages must be held accountable. Wage theft includes failure to pay at the minimum wage, not paying out mandated overtime, stealing tips, misclassifying workers, and other violations. In recent years, Governor Hochul has taken a stand against this activity by classifying wage theft as a larceny in penal law and providing the Department of Labor lien and levy powers to help recover stolen wages on behalf of workers.

This year, Governor Hochul created a new $5 million grant program administered by the Department of Labor to support district attorneys to take on new criminal wage theft investigations, further solidifying New York State's commitment to protecting workers' rights.

Increasing Access to Medical Care for Injured Workers

New York is one of only a handful of states that requires special authorization for healthcare providers treating workers' compensation claimants. Only about 10 percent of eligible providers have gone through this authorization process, forcing injured workers to wait for appointments or travel long distances to receive care.

New Yorkers who get hurt at work should be able to see the doctors they trust, get healthy, and get back to work. While ensuring that qualified doctors are serving patients, Governor Hochul will eliminate this cumbersome and outdated authorization process, allowing any eligible licensed medical provider in good standing to treat workers' compensation claimants if they choose. Cutting this red tape will open the door to thousands more primary care providers and specialists who can help people heal and get back to work faster.

Fighting Workers' Compensation Fraud

Workers' compensation fraud is a pernicious criminal activity that increases costs for businesses and insurers, affecting employers' decisions when it comes to other costs like employee wages and benefits. The Workers' Compensation Board provides annual funding to the Workers' Compensation Fraud Inspector General (WCFIG) to investigate fraud. However, WCFIG's referrals to law enforcement often go unprosecuted because district attorneys lack the funding and staff to establish dedicated workers' compensation fraud units.

To combat instances of workers' compensation fraud, Governor Hochul passed legislation that allows the Workers' Compensation Board to use employer assessments to administer a $7 million grant program for district attorneys to establish and staff dedicated workers' compensation fraud units. This funding will ensure they have the necessary resources to investigate and prosecute these crimes, ultimately protecting honest workers and helping to reduce costs for businesses across New York State.

Tier VI Reforms to Boost Recruitment and Retention and Improve Pension Equity

Governor Hochul secured a Budget agreement that improves Tier VI pension equity and boosts recruitment and retention across state and local governments. For teachers, the revisions in the FY 2027 Budget lowers the retirement age from 63 to 58 upon 30 years of service. Employee contributions are now lowered to a range of 3 percent to 5.75 percent for State and local employees across the state. Tier 6 State Police and Fire Retirement System members will see an increase in the cap amount of overtime that can be included in the calculation of their retirement benefit from 15 percent to 25 percent of wages. Other public employees will see an increase in the cap amount of overtime that can be included in the calculation of their retirement benefit from approximately $22,000 to $30,000.

State Senator Robert Jackson said, "Every Budget is a statement of values, and this one affirms a simple truth: workers deserve more than praise; they deserve protection, care, and a fair path to retirement," said Senator Robert Jackson. "I thank Governor Hochul for standing alongside us in the fight to protect working New Yorkers by confronting wage theft, expanding access to care for injured workers, and advancing long-overdue Tier VI reforms. New York cannot build a just future on the backs of workers while leaving them vulnerable. When we protect those who teach, heal, build, serve, and keep this state moving, we honor the labor that makes New York possible."

State Senator Jessica Ramos said, "I thank Governor Hochul for continuing to prioritize working people in this year's budget. From strengthening enforcement against wage theft to expanding access to medical care for injured workers and advancing long overdue Tier VI reforms, these measures recognize that workers deserve dignity, fairness, and real support from their government. These are practical, meaningful steps that help protect wages, improve retirement equity, and ensure New York remains a place where working families can build stable lives."

Assemblywoman Pheffer Amato said, "Governor Hochul has shown time and time again that she is a woman of action and committed to making the lives of working New Yorkers better. By enacting new policies to combat wage theft, help injured workers, and make the needed changes to Tier 6 which puts money back into the pockets of our governmental employees, the Governor consistently shows what it means to be a leader."