N.Y. Work. Comp. Law § 34

§ 34. Preferences. Compensation shall be a lien against the assets of\nthe carrier of employer without limit of amount subordinate, however, to\nclaims for unpaid wages and prior recorded liens. The provisions of this\nsection shall not apply to the state insurance fund with respect to\nthose liabilities and obligations assumed by the state pursuant to\nsection eighty-seven-d of this chapter or as the result of any insuring\nagreement between the state insurance fund and the department of civil\nservice pursuant to section eighty-eight-c of this chapter. In such\ninstances compensation shall be alien against the assets of the state as\nthe employer.\n