News10NBC Investigates: Some businesses moving out of state, frustrated by increasing premiums and fees

ROCHESTER, N.Y. (WHEC) — It’s a tough time right now for many businesses. Inflation, supply-chain issues, staffing shortages and a whole lot of increasing insurance premiums and fees are piling up and causing some to pull out of New York State.

Anthony DAgoistino owns three childcare schools in Monroe County. "I have one in Pittsford, one in Irondequoit and another in Brockport,” he tells News10NBC. DAgoistino also owns InspireCare 360, “that outsources childcare back office solutions,” he explains. “Were supporting schools throughout 28 different states.”

Throughout the pandemic, his schools were open and his 50 full-time employees were working but like other businesses, he’s now paying higher premiums to re-fill the state’s drained unemployment insurance fund. "We’ve been paying probably close to double I would say, of what we’ve paid over the past five or six years, it’s crazy so, it’s a huge burden on us overall,” DAgoistino says.

Making matters worse, as News10NBC has been reporting, the state is now hitting businesses with a separate, additional surcharge to pay off interest it owes on a $9 billion federal loan taken out during the pandemic to cover unemployment claims after the fund was dry. "I think it comes out to like $27 an employee, my bill is like $1,800 and it’s for the foreseeable future (annually) unless the U.S. government comes back and credits us which I don’t think that’s going to happen,” DAgoistino says.

And, to keep piling on there’s a bill on Governor Kathy Hochul’s desk right now that has the potential to dramatically increase Worker’s Compensation premiums for businesses too. "If you can’t do your job and they don’t have light duty for you, you get paid total disability so that means you could have a sprained right wrist and you’re gonna be sitting home making your full pay,” says Peter Walsh, a Partner at Walsh and Hacker Law Firm.

Workers who are considered “totally” disabled following an injury on the job have traditionally gotten two-thirds of their average weekly wage for a set number of weeks. That benefit is then typically reduced as an employee’s condition improves until he/she is able to return. If this bill is signed into law, a worker who is partially disabled will receive 100 percent of their wage throughout their recovery unless their employer can provide suitable light-duty work. “No business can afford that, even the bigger clients of ours…they could have light-duty but only for a short period of time, they can’t afford years and years and years of it,” explains Walsh, “the cost of this is going to drive up premiums according to my clients about 30-35 percent,” he adds.

For DAgoistino, it’s all piling up. "Since my schools are brick and mortar they’re not going anywhere they’re staying there but I will tell you, my other company InspireCare 360 which has done so very well, I am moving that business to Florida,” he tells News10NBC. And for the time being, “New York State has sort of stopped us in our tracks from wanting to acquire other businesses here,” he adds.

Governor Kathy Hochul has not said whether she will sign the Workers Comp bill, she has until the end of the year to decide.