New York Workers’ Compensation Transforms: TDI Reform, Mental Health Coverage & Medical Access

After decades of stagnation, New York workers’ comp is entering a transformative era. With TDI reforms on the horizon, mental health now recognized, and medical access improved, it’s time to unpack what this means for injured workers.

1. TDI Reform: Finally Catching Up

Temporary Disability Insurance (TDI) hasn’t budged from $170/week since 1989, leaving New Yorkers unable to cover basic living expenses after injury or illness wcrinet.orgtimesunion.com+1timesunion.com+1. A bill now before the Assembly would phase benefits up to 67% of average wages by 2030. The Senate passed it easily, but members in the Assembly remain hesitant due to small-business cost concerns. If enacted, this reform could mean real financial relief and peace of mind for hundreds of thousands of workers.

2. Mental Health Coverage Becomes Law

As of June 4, 2025, workers can file comp claims for mental injuries stemming from significant work stress—not just for depression, anxiety, or PTSD in healthcare or emergency services, but across all sectors  timesunion.comstaffingtoday.net+7nycdentalsociety.org+7jonesjonesllc.com+7. This shift acknowledges that invisible injuries matter too. Employers and legal professionals must be prepared for case-by-case interpretations, with judges evaluating severity and documentation.

3. Smoothing Medical Treatment Pathways

Gov. Hochul’s 2025 reforms attack systemic inefficiencies by:

• Automatically allowing licensed providers to treat injured workers.

• Letting residents and fellows treat under supervision—adding 20,000+ providers  blog.daisybill.comspectrumlocalnews.com+4wcb.ny.gov+4blog.daisybill.com+4.

• Updating fee schedules to mirror Medicare and requiring payment during disputes—reducing red tape and speeding access.

  
  

Impact on Stakeholders

• Workers: More equitable disability pay, real mental health support, and faster care.

• Employers/Insurers: While premiums may rise, prompt access and fewer delays could lower long-term costs.

• Legal Practitioners: The legal landscape is evolving; it’s time to adapt claim strategies and evidence-gathering.

  
  

Conclusion

New York isn’t just updating workers’ comp—it’s modernizing its approach to worker well-being. These reforms reflect a broader shift toward fairness, access, and acknowledgment that injury isn’t just physical. Whether injured worker or advisor, staying ahead of these changes is essential.