It's Time to Reform New York's Scaffold Law

New York is the only state with absolute liability for gravity-related construction injuries. This outdated law drives up insurance costs, limits housing production, and puts billions of dollars at stake across our city's most critical infrastructure projects.

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THE COST TO NEW YORK

2–5x Higher insurance costs than comparable states

8–10% Of total development costs go to insurance (vs. 2–4% elsewhere)

1 of 50 New York is the only state with absolute liability

$140M

Economic output per $100M saved

600

Jobs supported per $100M reinvested

$55M

In labor income generated

1.4x

Economic multiplier effect

THE PROBLEM

What Is the Scaffold Law?

New York’s Scaffold Law (Labor Law § 240/241) holds property owners and contractors fully liable for gravity-related worker injuries — regardless of whether the worker was at fault.

Every other state in the country uses a comparative negligence model, where liability is shared among parties based on their degree of fault.

For subcontractors in high-risk trades like steel erection, environmental work, and scaffolding, insurance can consume 15–20% of total revenue.

Insurance as % of Development Costs
8–10%

New York City

VS

2–4%

Other States

Source: HR&A Advisors Economic Impact Study, December 2025

THE OPPORTUNITY

What Reform Could Mean for New York

If savings from lower insurance costs were reinvested into construction, the economic impact would be significant.

More Jobs

For every $100 million saved and reinvested into construction activity

600 FTE Jobs
Economic Growth

Total economic output generated through direct, indirect, and induced impacts

$140 Million
Worker Income

Labor income flowing to construction workers and related industries

$55 Million

Supporting New York's
Construction Workers

Reform means more projects, more jobs, and better wages for the men and
women who build our city.

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REAL IMPACT

Major Projects, Major Savings

See what reform could mean for NYC’s most important infrastructure projects.

Penn Station Redevelopment

$7 Billion Project
$280–560M

Potential Savings

970–1,940

Jobs Supported

$135–270M

Labor Income

$360–720M

Economic Output

Second Avenue Subway Phase 2

$6.9 Billion Project
$275–550M

Potential Savings

710–1,420

Jobs Supported

$135–270M

Labor Income

$355–710M

Economic Output

HOUSING IMPACT

More Affordable Housing for New Yorkers

8–10%

More affordable housing units could be supported per project if insurance savings were reinvested — helping address NYC’s ongoing housing crisis.

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GET INVOLVED

Join the Movement for Reform

Add your voice to the growing coalition of builders, developers, unions, and advocates calling for common-sense reform of New York’s Scaffold Law.

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HR&A Advisors Economic Impact Study

Read the full analysis commissioned by BTEA • December 2025

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Our Coalition

Industry leaders united for reform

A campaign by the Building Trades Employers’ Association to reform New York’s outdated Scaffold Law and unlock economic opportunity for all New Yorkers.

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