In an article published in Mealy’s Litigation Report: Employment Law, Goldberg Segalla partner Dustin W. Osborne outlines a comprehensive legal and strategic overview for Professional Employer Organizations (PEOs) navigating workers’ compensation claims in New York.

“A Strategic Guide For New York State PEOs In Workers’ Compensation Coverage Claims” highlights the statutory framework under New York Labor Law Article 31, which mandates that PEOs must be licensed and either provide workers’ compensation insurance for leased employees or ensure that clients obtain separate coverage for non-leased employees.

Co-chair of Goldberg Segalla’s PEO practice group, Dustin underscores the disputes that often arise when a client hires a worker without the PEO’s knowledge or subcontracts to an uninsured entity, and he delves into the case law that has shaped the evidentiary standards for determining liability.

The article concludes with strategic recommendations for PEOs, urging them to maintain accurate and date-specific employee rosters, strengthen client agreements to clearly define employment relationships, document all compliance efforts, and be prepared to litigate coverage disputes.

Despite these measures, Dustin warns that the New York Workers’ Compensation Board often imposes burdensome standards, making it essential for PEOs to proactively manage risk to avoid unwarranted liability.

“The recent case law provides PEOs with a viable path to avoid liability for injuries sustained by non-leased workers but only if the evidentiary foundation is strong,” he says. “To protect against unwarranted exposure, PEOs must treat coverage compliance as a core operational priority, embedding documentation, client communication, and insurance coordination into their day-to-day risk management strategy.”

READ THE FULL ARTICLE HERE: “A Strategic Guide For New York State PEOs In Workers’ Compensation Coverage Claims,” Mealy’s Litigation Report: Employment Law, June 23, 2025

MORE ABOUT DUSTIN W. OSBORNE:

Dustin co-chairs Goldberg Segalla’s Professional Employer Organization (PEO) group, which serves the complex legal needs of PEOs in this burgeoning industry. His practice focuses on the defense of complex workers’ compensation claims, handling matters from their inception through resolution, and, if necessary, on appeal. As counsel for a number of PEO clients, he monitors litigation and legislation in jurisdictions throughout the country, including how various states handle the issue of workers’ compensation coverage for non-leased employees. His background also includes commercial litigation, and he is an emerging authority in sports and entertainment law.