Title: Critical Updates to NY Workers’ Compensation: “No‑Touch” Law, Medicare MSA Shift & Rate Change

Introduction

New York’s workers’ compensation landscape is evolving rapidly this summer. Three significant changes—enforcement of the “No‑Touch” law, a CMS policy shift on Medicare Set-Asides (MSAs), and new compensation rate updates—are reshaping workplace protections, employer obligations, and claimant benefits.

1. “No‑Touch” Law Protects All Workers

Effective as of June 5, 2025, New York’s “No‑Touch” law prohibits unwanted physical contact in the workplace, with non-compliance potentially triggering fines wnbf.comreuters.com. Unlike restrictions limited to specific industries, this law applies to all employees—including MTA staff, NYC municipal workers, unionized laborers, and those in construction. Employers must implement clear training, establish reporting protocols, and reinforce respectful conduct expectations.

2. CMS Drops Reviews of Zero-Dollar MSAs

Under new federal policy effective July 17, 2025, CMS will no longer review zero-dollar Medicare Set-Aside arrangements nfib.comreuters.com. These arrangements typically apply when no future medical expense coverage is needed post-settlement. While this expedites MSA closure, it places full burden on carriers to prove no further medical treatment will occur. Without CMS oversight, organizations face heightened liability risk, making careful documentation critical.

3. Weekly Compensation Rates Adjusted

Come July 1, 2025, expect updated workers’ comp rates in New York reuters.comtimesunion.com+7mcvlaw.com+7workerslaw.com+7. State minimum benefits are increasing, and the maximum weekly rate is now $1,222.42—reflecting 66 2/3% of the 2024 state average weekly wage. This ensures more realistic financial support for injured workers and adjusts insurer obligations accordingly.

Why These Matter

• Employees & Unions: These changes reinforce workplace safety (No‑Touch), ensure continuing benefits (Rate Increase), and streamline claim administration (MSA shift).

• Employers & Insurers: Expect new training, compliance checks, physician documentation demands, and MSA risk assessments.

• Legal & HR Practitioners: Update policies, audit file retention, and communicate changes to stakeholders proactively.

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Conclusion

Between the “No‑Touch” mandate, MSA policy shift, and rate hike, this summer brings meaningful transformations in NY’s workers’ comp system. If you’re part of the MTA, unions, construction, city/state services—and particularly if you handle claims—don’t wait. Review your internal protocols, update trainings, and tighten documentation now.