senate Bill S2776A

Amended

Provides that certain workers' compensation payments shall be made in one lump sum without commutation to a present value amount

download pdf

Sponsor

Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
view actions

actions

  • 02 / Mar / 2009
    • REFERRED TO LABOR
  • 26 / May / 2009
    • AMEND AND RECOMMIT TO LABOR
  • 26 / May / 2009
    • PRINT NUMBER 2776A
  • 01 / Jun / 2009
    • 1ST REPORT CAL.512
  • 02 / Jun / 2009
    • AMENDED 2776B
  • 02 / Jun / 2009
    • 2ND REPORT CAL.
  • 03 / Jun / 2009
    • ADVANCED TO THIRD READING
  • 16 / Jul / 2009
    • SUBSTITUTED BY A2021B

Summary

Provides that certain workers' compensation payments shall be made in one lump sum without commutation to a present value amount.

do you support this bill?

Bill Details

Versions:
S2776
S2776A
S2776B
Legislative Cycle:
2009-2010

Sponsor Memo

BILL NUMBER: S2776A

TITLE OF BILL :
An act to amend the workers' compensation law, in relation to the
payment of compensation


PURPOSE OR GENERAL IDEA OF BILL :
This bill would change the payment structure to injured workers for
permanent partial disability from incremental payments to one lump
sum.

Section 1 of the bill amends section 25(1) (b) of the Workers'
Compensation Law to require that an award of compensation for
permanent partial disability may be payable in one lump sum.

Section 2 of the bill amends section 15(3) (u) of the Workers'
Compensation Law to require that a total or partial loss of use of
more than one member or parts of members may be fully payable in one
lump sum.

JUSTIFICATION :
Injured workers who suffer permanent functional limitations to
extremities or certain other body parts are typically compensated for
such losses by a schedule loss of use award. Such awards, calculated
after deducting the amount of lost time benefits paid to the claimant,
provide the injured worker with a cushion against the diminished
future earning capacity caused by his or her permanent functional
impairment.

The Workers' Compensation Board has recognized that it is entirely
consistent with the economic and humanitarian objects of the Workers'
compensation Law to pay such schedule loss of use awards to the
injured worker in one lump sum, rather than periodically over time.
In Lacroix v. Syracuse Executive Air Service 25 A.D. 3d 967 (2006),
the Appellate Division, Third Department affirmed the Workers'
Compensation Board's approval of the lump sum payment of schedule loss
of use awards. That decision, however, was reversed by the New York
Court of Appeals in LaCroix v. Syracuse Executive Air Service, 8
N.Y.3d 348(2007). While recognizing that a schedule loss of use award
seeks to compensate the injured worker for loss of earning power, the
Court of Appeals ruled that the Board's policy contravened the
language of the Worker's Compensation Law and that any departure from
the periodic method of payment of schedule loss of use awards must
come from the Legislature.

Lump sum payments allow injured workers to invest their award if they
chose and better prepare for the adverse financial and emotional
effects of their resulting diminished earning capacity.

PRIOR LEGISLATIVE HISTORY :
2008: A.10879 Reported to Ways and Means

FISCAL IMPLICATIONS :
To be determined.

EFFECTIVE DATE :
This act would take effect immediately.
view bill text
The Bill text is not available.

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.