New York Scaffold Law faces RICO lawsuits as industry groups push for reform
New York’s 140‑year‑old Scaffold Law is under attack as insurance firms file RICO lawsuits against injury lawyers and doctors, while industry groups lobby for its repeal. The litigation, ongoing in 2026, targets the law that lets workers sue property owners and contractors for falls above 20 feet.
In this story
At a glance
- What changes
- Industry groups are filing RICO suits to challenge the Scaffold Law
- Timing
- The lawsuits were filed in 2025 and remain active in 2026
- Who is affected
- Construction workers, injury attorneys, insurers and contractors
The details
- Previous rule
- The Scaffold Law, enacted in 1883, allows workers who fall more than 20 feet to sue property owners and contractors directly, bypassing standard workers’ compensation limits.
Background of the Scaffold Law
Established two years after the Brooklyn Bridge was completed, the Scaffold Law was created to protect construction workers who work at heights. It gives injured workers a direct cause of action against owners and contractors, potentially yielding multi‑million‑dollar settlements.
RICO Litigation Against Lawyers and Doctors
In 2025 three insurance companies—Roosevelt Road Re, Tradesman Program Managers, and Ionian Re—filed a Racketeer Influenced and Corrupt Organizations (RICO) lawsuit accusing injury attorney Nick Liakas and several doctors of orchestrating fraudulent claims under the Scaffold Law. The suit alleges an organized scheme to exaggerate injuries and secure large settlements.
- The RICO case remains pending as of 2026
- Previous similar RICO suits were dismissed on procedural grounds in 2025
Industry Campaign to Repeal or Amend the Law
Construction firms and insurance groups, led by Skyline Restoration and its affiliates, argue that fraudulent claims inflate insurance costs, citing a 2025 industry‑funded study claiming a 200‑500% increase in insurance premiums. They have funded academic research and lobbied political leaders, including Gov. Kathy Hochul, to modify or repeal the Scaffold Law.
Labor and safety advocates, such as the New York Committee for Occupational Safety and Health, dispute the fraud narrative and warn that weakening the law would reduce protections for immigrant and low‑wage workers.
- Skyline’s former CEO John Kalafatis sits on the board of the New York City Special Riggers Association
- Studies supporting the fraud claim have been criticized for industry funding
What this means for travellers
Trip planning
- Workers planning construction projects in New York should monitor ongoing litigation for potential changes to liability exposure.
- Employers may adjust safety protocols or insurance coverage in response to industry pressure on the Scaffold Law.
Cost and documents
- No new fees or documentation requirements for travelers are introduced by the litigation.
- Insurance premiums for construction projects could rise if the law is amended, affecting project budgets.
What you need to do
- Injured workers should continue to file standard workers’ compensation claims regardless of the lawsuits.
- Law firms and medical providers named in the RICO suits must prepare for court proceedings and possible discovery requests.
Who this affects
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Construction workers injured on scaffolds
They rely on the Scaffold Law to seek compensation for falls above 20 feet.
What to do Continue to pursue workers’ compensation and Scaffold Law claims while monitoring any legislative changes.
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Injury attorneys and doctors
They are defendants in the RICO lawsuits alleging fraudulent claim practices.
What to do Prepare legal defenses and comply with any court‑ordered discovery.
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Construction insurers and contractors
They are plaintiffs in the RICO suits and lobby for reform of the Scaffold Law.
What to do Assess risk exposure and consider adjustments to insurance policies and safety programs.
Frequently asked questions
What is New York's Scaffold Law?
The Scaffold Law, enacted in 1883, allows workers who fall more than 20 feet on a construction site to sue property owners and contractors directly, bypassing standard workers’ compensation limits.
Who filed the RICO lawsuits related to the Scaffold Law?
Three insurance companies—Roosevelt Road Re, Tradesman Program Managers, and Ionian Re—filed RICO suits in 2025 alleging that injury lawyer Nick Liakas and several doctors orchestrated fraudulent Scaffold Law claims.
What outcome have previous RICO suits against injury firms had?
Earlier RICO suits filed in 2025 were dismissed on procedural grounds, with judges finding the plaintiffs’ claims insufficiently pleaded.
Are there any new fees for workers filing Scaffold Law claims?
No new fees or paperwork requirements for filing Scaffold Law claims are mentioned in the current litigation or industry reports.
Will the Scaffold Law be repealed soon?
The law remains in force; however, industry groups are lobbying for reform, and the outcome depends on legislative action and the results of ongoing lawsuits.
