Advocacy

Scaffold Law (Labor Law §§240 & 241)

New York’s Scaffold Law is a 140-year-old outlier that imposes absolute liability on property owners and contractors for gravity-related injuries, regardless of fault or safety compliance. Unlike every other state, courts are prohibited from considering whether proper safety equipment was provided, whether protocols were followed, or whether a worker’s own actions contributed to an accident.

This standard has significantly inflated construction costs. Insurance premiums in New York are 5–10% higher than the national average and can consume up to 12.5% of total construction budgets—more than five times higher than in neighboring states. These costs

disproportionately impact residential construction, renovations, and small-to-mid-sized projects, which dominate Long Island’s building activity. The added costs are passed on to homeowners, renters, taxpayers, and municipalities, worsening affordability and slowing redevelopment.

The law also inflates public infrastructure costs, diverting taxpayer dollars away from classrooms, roads, and housing. Insurance premiums on major public projects have increased by hundreds of millions of dollars solely due to Scaffold Law exposure.

 

Fraud and Abuse Concerns

The absolute liability standard has created incentives for staged and exaggerated accident claims. Recent federal litigation alleges coordinated schemes involving repeat claimants, referral networks, medical providers, and litigation funders. Because owners and contractors have virtually no legal defense under the law, insurers are often pressured into large settlements, driving up costs and rewarding abuse.

 

LIBI’s Position

LIBI supports common-sense reform that replaces absolute liability with a comparative negligence standard while fully preserving worker safety. Courts should be allowed to consider whether safety equipment was provided, available, and properly used. This reform would align New York with the rest of the country, reduce abusive litigation, stabilize insurance costs, and ensure that resources are spent on building and safety—not excessive insurance payouts. Scaffold Law report: Insurance costs skyrocket up to 500% in NYS because of controversial law Proposed NY State bill would exempt Long Island construction projects from Scaffold Law Time to deconstruct outdated Scaffold Law An old law, new scams and spiking insurance rates that can cost Long Island and New York State residents Reform the Scaffold Law and cut the cost of building in NY Lawsuit: Long Islanders participated in alleged fraud scheme to stage fake accidents Scaffold Law Reform