Jockeys and exercise riders based in New York Thoroughbred tracks might have to deal with surging workers’ compensation insurance rates by 2016—unless the New York Gaming Commission authorizes a plan that could keep rates at 2015 levels.
Typically, workers’ compensation for both jockeys and exercise riders is paid for by owners and trainers via the Jockey Injury Compensation Fund, with the insurance itself purchased through the New York State Insurance Fund.
During its monthly meeting on Monday, the New York Gaming Commission approved an emergency rule that would charge trainers based at tracks affiliated with the New York Racing Association (Aqueduct, Belmont, and Saratoga) $5.65 per stall per day toward workers' compensation insurance. Compared to the previous fee of $1.50, the new price is a staggering 276% increase.
Similarly, trainers based at Finger Lakes tracks will have to pay $2.12, instead of the previous 55 cents.
Under the new rates, a trainer at a NYRA track with a 20-stall allotment would end up forking over $41,245 in stall fees for workers' comp in 2016, instead of $10,950 in 2015 rates.
Moreover, the gaming commission ruled that trainers would have to pay $1,000 per incident that resulted in an injury.
The emergency rules were put into place by the commission since the Jockey Injury Compensation Fund failed to submit a funding plan by November 15, as statutorily required. This is the second year in a row that the organization has failed to submit a funding plan in time.
The organization, however, finally submitted a plan on December 21 that would keep workers’ compensation insurance rates as they are.
“Everything is in place and the costs will emulate what it was this year. I have no idea where [the commission] came up with their numbers,” said Jockey Injury Compensation Fund president Rick Violette. Violette declined to comment if the fund will be utilizing the New York State Insurance Fund or another insurance company.
New York Gaming Commission executive director Robert Williams admitted that the submitted plan was “markedly different in cost structure” than what jockeys would pay under the commission’s emergency rules, but the commission’s staff will begin reviewing the plan immediately.
