Introduction
New York Labor Laws 240 and 241 – often referred to as the “Scaffold Law” and its related provisions – impose strict safety requirements and liability on construction site owners and contractors for elevation-related hazards. Over the past 20 years, these laws have been central to New York’s construction safety regime. This report examines trends in construction injuries and fatalities in New York, the nature of accident claims (including any fraudulent activity), insurance claim outcomes, and expert analyses on how Labor Laws 240/241 have influenced safety standards. It also reviews attempts to weaken these laws and the potential consequences of such changes. All data and analyses are drawn from New York-focused sources, including government reports, safety studies, and industry/legal analyses.
Trends in Construction Injuries and Fatalities (2004–2024)
Long-Term Fatality Trends: New York’s construction industry has seen notable fluctuations in worker fatalities over the past two decades, with a general downward trend in New York City following enhanced safety measures. In the mid-2000s, annual construction fatalities in NYC often ranged higher (the state recorded dozens of deaths each year). After intensified enforcement of safety regulations and Labor Law provisions, NYC’s fatality numbers declined significantly. For example, construction worker deaths in New York City dropped from a high of 28 fatalities in 2014 to just 13 in 2020 – the lowest in a decade . By 2023, NYC recorded 7 construction-related deaths, roughly half the number seen a few years prior (14 deaths in 2019) . This improvement coincided with increased inspections and stricter compliance with safety laws: in 2023 the NYC Department of Buildings conducted a record 370,000+ inspections and noted that building-construction fatalities were at their lowest in nearly ten years .
Injury Trends: While fatalities have declined in recent years, reported construction injuries have shown mixed trends. New York City saw worksite injuries rise in the early 2020s even as deaths fell. In 2023 there were 692 injuries citywide, a 25% increase from 554 injuries in 2022 . Many of these were minor incidents (e.g. ladder and trip-and-fall injuries, which jumped by 14% ) and often not linked to serious safety violations. The increase in reported injuries may reflect better reporting and a busy construction sector, rather than a deterioration in safety practices. Overall, however, serious accidents have trended downward compared to 15–20 years ago, indicating progress in safety.
NYC vs. Rest of State: Trends suggest stronger safety outcomes in New York City than in upstate and other regions, potentially reflecting stricter enforcement of Labor Law 240/241 in the city. A 2019 safety report noted that NYC’s construction fatality rate fell by 23% over five years (2013–2017), even during a building boom, whereas the statewide construction fatality rate increased by 39% in the same period . In 2017, 69 construction workers died statewide – continuing a five-year rising trend – while NYC’s share was 20 deaths and on a downward trajectory . Safety advocates attribute the city’s improvements to robust enforcement (NYC Department of Buildings safety campaigns and the deterrent effect of Labor Law 240/241) and higher unionization, whereas more lax safety compliance upstate led to higher fatality rates . Notably, falls from elevation remain the leading cause of construction fatalities (about half of all construction deaths in New York involve falls) , underscoring the continued importance of the Scaffold Law’s focus on fall protection.
Key Enforcement Measures: Several enforcement and legislative efforts in the past 20 years likely contributed to these safety trends. In the late 2000s and 2010s, New York City bolstered construction oversight (e.g. increasing site inspections after high-profile accidents and implementing stricter safety training requirements). The consistent court upholding of Labor Law 240’s strict liability standard also forced contractors to prioritize fall prevention. By maintaining an unyielding requirement for safe scaffolding, harnesses, and other protective devices, the law created a strong incentive for compliance. The data suggest that when these laws are rigorously enforced, serious accidents (especially fatal falls) decrease. For instance, after a period of heightened enforcement and safety awareness in the late 2010s, NYC hit record-low fatality numbers by 2020 . This improvement represents a stark contrast to the mid-2000s and early 2010s, illustrating the positive impact of sustained safety initiatives under Labor Laws 240/241.
Legitimate vs. Fraudulent Construction Accident Claims
Volume of Claims: The vast majority of construction accident claims filed under Labor Law 240/241 are legitimate injury cases, given the inherently hazardous nature of the work. Each year, hundreds of workers who suffer falls or other elevation-related injuries pursue claims for compensation. For example, one insurance study of New York municipalities found 588 “fall from height” claims over six years (approx. 98 claims per year) for a subset of local governments . The preponderance of these claims are genuine, reflecting actual accidents where safety lapses caused harm.
Fraudulent Claim Incidence: Documented fraudulent construction injury claims exist but comprise a small fraction of total cases. Recent investigations have uncovered organized fraud rings attempting to exploit Labor Law 240. In one high-profile 2024 case, an insurer filed a RICO lawsuit against 46 individuals and businesses for allegedly staging fake construction accidents to file injury claims . The scheme involved recruiters, attorneys, and doctors conspiring to fabricate falls (often with unwitnessed minor incidents exaggerated into severe injury claims) . Such criminal enterprises are alarming, but they are the exception rather than the rule. Industry observers note that only in the last few years have “suspicious” injury filings noticeably increased, correlating with a handful of fraud rings. Some large contractors report a 200–300% surge in questionable fall claims since around 2020 – for instance, a firm that might previously see one dubious claim in several years may now face a few per year. This spike has raised concerns, but it still represents a small proportion relative to the many legitimate accidents that occur on job sites annually.
Proportion of Legitimate vs. Fraudulent: It is difficult to quantify an exact percentage of fraudulent claims, but available evidence suggests they are a small minority. In the organized fraud case mentioned, dozens of false claims were orchestrated over multiple years . By contrast, hundreds of real construction injuries happen each year in New York State. Even assuming a recent uptick, experts indicate that the overwhelming majority of Labor Law 240/241 lawsuits stem from bona fide accidents. As one analysis points out, fraudulent “staged” accidents have indeed occurred – often targeting undocumented or newly hired workers – but these “suspicious” cases, while growing, are isolated when viewed against the broader landscape of worker injuries .
New York authorities and lawmakers are responding to stamp out fraud. In 2019, the state criminalized staging auto accidents (Alice’s Law), and a similar bill has been introduced to make staging a construction accident a felony . These efforts aim to deter the small subset of bad actors. In summary, legitimate claims vastly outnumber fraudulent ones in New York’s construction injury arena – on the order of well over 90% of claims are bona fide, with only a few percent or less involving deceit. The attention on fraud, while important for insurance and cost reasons, should be viewed in context: most injured workers truly need the protections that Labor Law 240/241 afford.
Insurance Claim Outcomes: Denials vs. Payouts
Workers’ Compensation (Medical Claims): Nearly all injured construction workers file claims for workers’ compensation to cover medical bills and lost wages. In New York, the acceptance rate for workers’ comp claims is very high after reforms in the 2010s. In 2019, only about 5.6% of workers’ comp claims were initially denied in New York . This marks a significant improvement from decades past, when initial denial rates were in the double digits . Moreover, even when initially contested, most claims are ultimately paid out after review. A national study found roughly two-thirds of initially denied comp claims are approved within a year . For New York, about 9 in 10 injured workers receive their first comp benefit payment within 18 days of injury notification – indicating prompt acceptance in the vast majority of cases. While one legal source noted that over 50% of claims were “turned away” by the Workers’ Compensation Board as of 2014 , that statistic likely reflects procedural denials (e.g. late filings or missing information) rather than outright fraudulent claims. Thanks to legislative reforms and a “Better Board” initiative, the process has improved. Bottom line: today, well over 90% of legitimate work injury claims in New York eventually get approved and paid through workers’ comp, with only a small percentage denied for substantive reasons .
Liability Claims (Labor Law 240/241 lawsuits): When a worker sues under Labor Law 240 or 241 for negligence, the question of claims being “denied” typically refers to whether the case is dismissed or not. Under the Scaffold Law’s strict liability standard, the vast majority of claims result in compensation (through settlements or judgments) rather than being denied. New York courts have made it clear that if a safety violation was even partly a cause of the injury, the worker cannot be found solely at fault . The only defense – that the worker was the sole proximate cause – applies in rare cases where the worker completely disregarded available safety equipment and no regulatory violation contributed . In practice, successful sole-cause defenses are “sharply limited” and “those occasions are rare” . Thus, from an outcomes perspective, nearly all non-fraudulent Labor Law 240/241 claims are ultimately paid out by insurance, either via settlement or court award. Insurance companies seldom win outright denial of such claims because the law imposes liability even if the worker is partly negligent. As one industry representative noted, “These cases will never go to trial…insurance companies will figure out the legal costs and then settle” . This means injured workers are compensated in the great majority of claims, and outright claim denials (where nothing is paid) are uncommon unless fraud is proven.
Claims Denial vs. Payout – By the Numbers: Precise percentages are hard to pin down, but available data and expert commentary imply that well over 90% of injury claims in New York’s construction sector lead to payouts, while a small minority are denied by insurers. Workers’ comp data shows fewer than 6% denied initially (and an even smaller fraction denied after appeals) . For third-party liability suits, one public-sector insurer (NYSIR) reported that in 270 Scaffold Law cases over two decades, “most were closed with no payment by [that insurer]” – however, that was because other liable parties’ insurers paid instead . In many cases, owners and contractors shift liability amongst their insurers via contractual indemnification, but the injured worker still receives a settlement or award from one of the insurers. Thus from the worker’s perspective, the claim is paid even if one insurer “denies” responsibility and passes the cost to another. The City of New York, for example, often tenders Labor Law claims to contractors’ insurers; still, the claim gets resolved with a payout from someone. Given the legal environment, New York liability carriers often choose settlement over denial – even dubious claims are sometimes settled for nuisance value rather than formally denied, to avoid trial costs .
In summary, insurance denials are the exception. The combination of a strong workers’ comp system and the Scaffold Law’s strict liability means that the default outcome is payment to the injured worker. Only clearly non-compensable cases (late filings, entirely unrelated injuries, or provable fraud) result in denials. By numbers: likely <5% of comp claims and a similarly small fraction of Labor Law suits end with zero payout. The rest – on the order of 95%+ – are paid, reflecting the pro-worker tilt of New York’s laws.
Safety Improvements Attributed to Labor Laws 240/241
Numerous studies and experts support the view that Labor Law 240 and 241 have driven higher safety standards and reduced workplace injuries in New York’s construction industry. Key arguments and evidence include:
• Deterrence and Accountability: By holding owners and contractors strictly liable for elevation-related hazards, the Scaffold Law creates a powerful incentive to invest in safety. Common sense and economic logic suggest that if employers are financially liable for fall injuries, they will be more likely to implement proper safety measures . Professor Richard Hurd of Cornell ILR called any claim that the law causes accidents “counterintuitive,” noting that the law rightly puts responsibility on those who control worksites . The law essentially forces compliance with safety best practices – scaffolds, harnesses, guardrails – or else face costly lawsuits. This preventative effect is credited with making New York’s worksites safer than they would be under a negligence standard.
• Historical Correlation: New York is the only state with such a law, and though direct comparisons are complex, supporters argue that the Scaffold Law correlates with lower fatality rates in the most urban, unionized areas where it is rigorously enforced. As mentioned, New York City’s construction fatality rate has been lower than many areas of upstate NY and the national average . A report by the Center for Popular Democracy found that despite ongoing risks, the presence of Labor Law 240 remains crucial given the dangerous work conditions and the disproportionate impact on vulnerable workers . In other words, New York’s strong legal protections likely prevent some accidents that might otherwise occur if contractors felt less pressure to prioritize safety. (Critics often point out that other states without a Scaffold Law sometimes have lower injury rates, but advocates note those states may have different industry compositions and that weakening the law in NY could remove critical incentives for safety.)
• Protecting Vulnerable Workers: Studies highlight how Labor Law 240/241 is especially important for immigrant and non-union workers who might otherwise be at higher risk. In New York City, 74% of fatal falls involved Latino and/or immigrant workers , many working for non-union firms with spotty safety records. Statewide, 86% of Latino/immigrant worker fall deaths occurred at non-union sites . These statistics, published in a 2013 report Fatal Inequality, underscore that market pressures alone did not eliminate safety hazards – legal accountability is needed . Labor Law 240/241 provides a strong mechanism to hold employers accountable for these workers’ safety. Advocates argue that this has led to improved safety training and equipment provision, as contractors know they cannot simply ignore hazards particularly on minority-populated work crews . Essentially, the laws level the playing field, forcing even lower-tier subcontractors to follow safety rules or face liability, thereby reducing injury rates among the most at-risk groups.
• OSHA Limitations & the Role of 240/241: Federal OSHA standards already require fall protection, but enforcement is limited. OSHA is understaffed and can inspect only a small fraction of job sites, and its fines are often too low to deter bad actors . Labor Laws 240 and 241 fill this gap by giving workers a civil remedy and incentivizing employers to proactively comply rather than risk accidents. The threat of a costly lawsuit is a strong motivator where the threat of an OSHA $10,000 fine might be seen as just a cost of doing business. Safety proponents credit the Scaffold Law with creating a culture of safety compliance in New York’s construction industry that has likely averted countless accidents. Even though exact figures of “injuries prevented” are hard to measure, experts maintain that the steady improvements in New York City’s safety record (fewer fatal falls and injuries per project over time) are at least partly due to these laws’ influence . The laws ensure that safety is not just “the worker’s problem,” but a shared responsibility backed by legal teeth.
In summary, Labor Law 240/241 has contributed to safer job sites by making safety a top priority for employers. Studies and expert opinions refute the notion that the law hurts safety; on the contrary, they emphasize that strong worker-protection laws save lives . The reductions in NYC construction fatalities and the emphasis on proper safety gear across the industry over the past two decades are frequently cited as evidence of the laws’ positive impact.
Attempts to Weaken the Scaffold Law and Potential Consequences
Given the financial implications of Labor Law 240’s strict liability, there have been numerous legal and legislative attempts to reform or repeal these provisions. Contractor and insurance groups have lobbied for a negligence standard or comparative fault to replace the current rule, arguing it would reduce costs. Notably, the following efforts have taken place:
• Legislative Reform Bills: Over the past 20 years, bills have periodically been introduced in the New York State Legislature to amend Labor Law 240. These proposals typically seek to allow a worker’s comparative negligence to be considered, effectively softening the absolute liability on owners/contractors. For example, a recent Senate bill aimed to insert a comparative negligence defense was backed by developers and builders. However, such bills have consistently failed to pass. The New York County Lawyers Association pointed out that a 2023 proposal to add a comparative negligence defense “flouts the legislative and judicial history” of the law, which for over a century has placed full responsibility on those with worksite control . NYCLA and other bar associations have opposed these reforms, emphasizing that the current law’s safety purpose would be undermined by shifting burden onto workers .
• Judicial Challenges: Defense attorneys have continually tested the boundaries of Labor Law 240 in court, seeking rulings to narrow its scope. While courts have carved out the narrow sole proximate cause exception (as discussed above), the New York Court of Appeals has repeatedly reaffirmed the law’s strict liability core. In cases like Blake (2004) and Gallagher (2010), the Court upheld that only a total absence of statutory violation combined with worker misconduct can relieve defendants . These decisions quashed hopes that the judiciary might substantially erode the Scaffold Law – any broad change has to come from the legislature, which so far hasn’t happened.
• Pressure from Special Interests: Trade associations, particularly representing general contractors, have mounted public campaigns describing Labor Law 240 as “outdated” and harmful to New York’s economy. They often cite the increased insurance premiums (liability insurance costs in NY can be 5–10% of project costs, versus ~2% in neighboring states) . Some even claim that Illinois’s repeal of a similar law in the 1990s led to fewer accidents – though safety experts dispute cause and effect. These groups have sought to sway public opinion and lawmakers with reports (such as the 2014 Rockefeller Institute study) suggesting the Scaffold Law inflates accident rates, a claim strongly debunked by labor experts . Despite heavy lobbying, including millions of dollars spent by insurance and contracting interests, New York’s legislature has remained aligned with worker advocates on this issue. Political contributions from trial lawyers and unions have helped defend the Scaffold Law against major changes .
Potential Consequences of Weakening the Laws: Safety advocates warn that diluting Labor Law 240/241 would reverse the safety gains of recent years and put workers at greater risk. If owners and contractors could escape liability by blaming workers for a percentage of fault, the fear is that worksite safety investments would drop. The current law effectively forces employers to “engineer out” hazards (providing adequate scaffolds, fall arrest systems, etc.). If that pressure is removed, corners might be cut to save money, leading to more falls from heights. The New York State Trial Lawyers Association and union groups argue that a comparative negligence rule would “shift the burden of safety from the owner…to the worker”, which is exactly what the original law was designed to prevent .
Empirical evidence is cited to support these concerns. For instance, after Illinois weakened its scaffold law, some data showed a substantial decrease in construction accidents was claimed by reform proponents , but critics note Illinois simultaneously strengthened other safety programs, making it unclear what caused the change . In New York, one can look at the contrast between union and non-union job sites: non-union sites (often less oversight and feeling less pressure to comply) account for a disproportionate share of fatal accidents . Weaken the law’s enforcement mechanism, and that trend could worsen. New York City’s experience also suggests that robust enforcement correlates with fewer fatalities, so a rollback could stall or reverse the positive trend .
Another consequence of weakening the law could be shifting costs to taxpayers and workers. If lawsuits under Labor Law 240 become harder to win, severely injured workers might be left only with workers’ comp benefits, which are limited and can shift medical costs to public healthcare if needs exceed coverage. Additionally, removing the liability incentive might increase accidents, which ultimately imposes costs on society (through emergency response, lost productivity, etc.).
On the other hand, supporters of reform claim that lowering insurance costs might boost construction activity and infrastructure development. They cite estimates that the Scaffold Law adds hundreds of millions in costs annually . However, these economic benefits are speculative and come at the direct cost of reducing legal protections for worker safety. Habitat for Humanity and affordable housing developers have even blamed the law for raising building costs , but such arguments run up against the moral priority of saving lives on the job. Lawmakers have generally been unwilling to trade safety for cost savings, especially without clear evidence that safety wouldn’t suffer.
In summary, attempts to weaken Labor Laws 240 and 241 have consistently been met with strong opposition due to concerns over increased injuries and fatalities. The prevailing view among New York labor and legal experts is that any significant erosion of these laws would have dangerous consequences: a step backwards in construction safety and a return to an era of higher workplace risk. Thus far, those potential consequences have helped keep the Scaffold Law intact despite the reform efforts.
Conclusion
Over the past two decades, New York’s Labor Law 240 and 241 have had a profound impact on construction workplace safety. Fatalities from elevation-related accidents have generally declined in New York City, reaching historic lows after concerted enforcement of these laws and safety regulations . Although construction remains a hazardous occupation, the strict liability imposed by the Scaffold Law has clearly pushed employers toward safer practices, helping to prevent countless injuries.
Statistics from New York sources show that while construction activity increased, worker deaths did not rise in tandem – in fact, in NYC they dropped, suggesting improved safety performance . At the same time, the legal environment ensured injured workers could receive compensation, with the overwhelming majority of claims being legitimate and ultimately paid out, either through workers’ comp or liability insurance. Documented fraud schemes have emerged only recently and involve a tiny subset of claims, which authorities are actively cracking down on .
Expert analyses affirm that Labor Laws 240 and 241 have elevated safety standards. By making owners and contractors accountable for accidents, these laws have fostered a culture in New York’s construction industry that prioritizes proper equipment, training, and oversight . The result is evident in the data: a smaller proportion of construction workers losing their lives or getting seriously hurt on the job compared to past decades, especially in areas where enforcement is strongest.
Looking ahead, any move to dilute these longstanding protections carries significant risks. The experience of New York over 20 years indicates that strong worker-protection laws and vigorous enforcement save lives – a lesson that policymakers weigh heavily when debates over the Scaffold Law resurface. In the balance between cutting costs and ensuring every construction worker returns home safe, New York State’s choice to uphold Labor Laws 240 and 241 has, by most accounts, been a decision that has paid off in lives saved and injuries averted. The data and studies from 2004–2024 resoundingly support the argument that these laws have made New York’s workplaces safer, and continuing to defend and properly enforce them remains critical for the future of construction safety in the state.
Sources: New York Committee for Occupational Safety & Health (NYCOSH) reports ; NYC Department of Buildings and Comptroller data ; New York State Workers’ Compensation Board and Department of Labor statistics; WSHB legal analysis on fraud (2024) ; NY1 News report on Scaffold Law claims (2023) ; NYS Legislature and Bar Association documents . These and other New York-focused studies provide the factual basis for the trends and conclusions discussed. All data are drawn from New York sources and reflect the state’s unique legal environment and its effects on construction safety outcomes.
