senate Bill S2776B

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

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Bill Status


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

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Bill Details

See Assembly Version of this Bill:
A2021B
Versions:
S2776
S2776A
S2776B
Legislative Cycle:
2009-2010
Law Section:
Workers' Compensation Law
Laws Affected:
Amd ยงยง25 & 15, Work Comp L

Sponsor Memo

BILL NUMBER: S2776B

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 shall be payable in one lump sum upon the
request of the injured employee.

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 shall be fully payable in one
lump sum upon the request of the injured employee.

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
choose and better prepare for the adverse financial and emotional
effects of their resulting diminished earning capacity. This bill
allows an injured worker to request that their award be paid as a lump
sum.

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
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 2776--B
    Cal. No. 512

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                              March 2, 2009
                               ___________

Introduced  by  Sens. ONORATO, PERKINS, SAVINO -- read twice and ordered
  printed, and when printed to be committed to the Committee on Labor --
  committee discharged, bill amended, ordered reprinted as  amended  and
  recommitted  to said committee -- reported favorably from said commit-
  tee, ordered to first report, amended on first report,  ordered  to  a
  second  report and ordered reprinted, retaining its place in the order
  of second report

AN ACT to amend the  workers'  compensation  law,  in  relation  to  the
  payment of compensation

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Paragraph (b) of subdivision 1 of section 25 of  the  work-
ers' compensation law, as amended by chapter 635 of the laws of 1996, is
amended to read as follows:
  (b)  The  first  payment of compensation shall become due on the four-
teenth day of disability on which date or within  four  days  thereafter
all  compensation  then  due shall be paid, and the compensation payable
bi-weekly thereafter; but the board may determine that any payments  may
be  made  monthly  or at any other period, as it may deem advisable.  AN
AWARD OF COMPENSATION PAYABLE FOR  PERMANENT  PARTIAL  DISABILITY  UNDER
PARAGRAPHS  A  THROUGH  T,  INCLUSIVE,  OF  SUBDIVISION THREE OF SECTION
FIFTEEN OF THIS ARTICLE, SHALL BE  PAYABLE  IN  ONE  LUMP  SUM,  WITHOUT
COMMUTATION TO PRESENT VALUE UPON THE REQUEST OF THE INJURED EMPLOYEE.
  S  2.  Paragraph  u  of  subdivision  3  of section 15 of the workers'
compensation law, as added by chapter  301  of  the  laws  of  1929,  is
amended to read as follows:
  u.  Total  or  partial  loss or loss of use of more than one member or
parts of members. In any case in which there shall be a loss or loss  of
use  of  more than one member or parts of more than one member set forth
in paragraphs a [to] THROUGH t, [both] inclusive, of  this  subdivision,
but  not  amounting to permanent total disability, the board shall award

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04744-06-9

S. 2776--B                          2

compensation for the loss or loss of use of each  such  member  or  part
thereof,  which  awards [shall run consecutively] SHALL BE FULLY PAYABLE
IN ONE LUMP SUM UPON THE REQUEST OF THE INJURED EMPLOYEE.
  S 3. This act shall take effect immediately.

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