Fraud in the New York construction industry in the form of staged accidents, exaggerated claims, and unnecessary or excessive treatment has affected all aspects of NY Labor Law litigation. There have been civil RICO lawsuits brought by insurance companies against various plaintiff lawyers and medical providers, and significant litigation in those lawsuits. Much has been written and discussed about those lawsuits. But one aspect of these cases that has not often been discussed is the NYS Legislature's efforts to codify fraud in the context of construction projects. 

Last year, the New York State Assembly and Senate introduced bills establishing that the staging of a construction accident would be a Class E felony. Both of those bills, Assembly Bill A8981A and Senate Bill S8413A, died in committee and were never voted on, let alone presented to the governor for signature. 

This year, both bills—Assembly Bill A3800 and Senate Bill S5231—were reintroduced. Both bills again aim to make staging a construction accident a Class E felony. 

It remains to be seen whether these will again die in committee or make it to the governor's desk for signature. 

But for now, the status quo remains: staging a fraudulent accident on a construction site in New York is NOT a felony. 

We will continue to monitor and share any developments with these bills.