Empire State regulators want to keep employers from insuring building maintenance engineers as key persons.[@@]
The New York State Insurance Department has reacted to the recent uproar about “janitors insurance” by adopting an emergency regulation that tightens the state’s definition of “key person.”
The new regulation, Regulation Number 180, allows an employer to insure an employee as a key person only if the employee falls into 1 of 5 categories:
- The employee is 1 of the 5 highest-paid employees.
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- The employee owns at least 5% of the company.
- The employee earns at least $90,000 per year.
- The employee is among the highest-paid 35% of all employees.