NY State Senate Bill 2021-S8693

Senate Bill S8693

2021-2022 Legislative Session

Eliminates certain penalties assessed in relation to certain notice requirements for payment and cessation of compensation in certain circumstances; repealer

download bill text pdf

Archive: Last Bill Status - In Senate Committee Labor Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Mar 30, 2022	referred to labor

2021-S8693 (ACTIVE) - Details

See Assembly Version of this Bill:: A9737
Current Committee:: Senate Labor
Law Section:: Workers' Compensation Law
Laws Affected:: Amd §25, rpld §25 sub 3 ¶(g), Work Comp L

2021-S8693 (ACTIVE) - Summary

Eliminates penalties assessed against employers or insurance carriers for failure to comply with certain notice requirements relating to payment and cessation of compensation in certain circumstances.

2021-S8693 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S8693

SPONSOR: BROOKS
 
TITLE OF BILL:

An act to amend the workers' compensation law, in relation to eliminat-
ing certain penalties assessed in relation to certain notice require-
ments; and to repeal certain provisions of the workers' compensation law
relating thereto

 
PURPOSE:

The purpose of this legislation is to eliminate unnecessary monetary
penalties related to notice violations under the workers' compensation
law.

 
SUMMARY OF PROVISIONS:

Section 1. amends paragraphs (c) and (d) of subdivision (1) of section
25 of the workers' compensation law by removing monetary penalties for
violations of the Workers' Compensation Law for failure to provide imme-
diate notice to the workers' compensation board when payments related to

a non-controverted claim have begun, and for notifying the workers'
compensation within 16 days of the cessation of payments related to a
non-controverted claim, respectively.

Section 2. amends the closing paragraph of paragraph (a) of subdivision
2 of section 25 of the workers' compensation law by eliminating monetary
penalties for failure to file a notice of controversy to the board with-
in the greater of the prescribed period (in this case, 18 days from
injury) or within ten days after receiving notice of the accident,
whichever period is the greater.

Section 3. repeals paragraph (g) of subdivision 3 of section 25 of the
workers' compensation law, related to the WCB performance standard for
carriers and self-insured employers related to penalty assessments for
violations.

Section 4. is the enacting clause.

 
JUSTIFICATION:

Insurance carriers, self-insured employers, and third party administra-
tors of claims within the workers' compensation system have been
increasingly experiencing penalties for technical violations of the
workers' compensation law, particularly related to minor timing
violations related to notice provisions (for example, a notice of
controverted claim arriving to the board on the 19th day after injury) -
rather than penalties for failure to pay claimants in a timely fashion.
The penalties addressed in this bill do not relate to the payment of
claims, but rather to the timing with which required notice was received
by the board - penalties for violations that do not have a direct finan-
cial impact on a claimant.  The board has also created a performance
standard for compliance under which carriers and self-insured employers
face increased fines (calculated by the number violations found multi-
plied by proscribed fine amounts) for instances in which the standard is
not met, but provides no reprieve for carriers or self-insured employers
that have met the standard. This legislation will provide some relief to

carriers and self-insured employers who are increasingly facing fines
from the Board for technical notice violations under the statute.

 
FISCAL IMPLICATIONS:

This legislation would result in decreased fine collections from the New
York State Workers' Compensation Board.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2021-S8693 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8693
 
                             I N  S E N A T E
 
                              March 30, 2022
                                ___________
 
 Introduced  by  Sen.  BROOKS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Labor
 
 AN ACT to amend the workers' compensation law, in relation to  eliminat-
   ing  certain penalties assessed in relation to certain notice require-
   ments; and to repeal certain provisions of the  workers'  compensation
   law relating thereto

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraphs (c) and (d) of subdivision 1 of  section  25  of
 the  workers' compensation law, as amended by chapter 635 of the laws of
 1996, are amended to read as follows:
   (c) If the employer or  insurance  carrier  does  not  controvert  the
 injured worker's right to compensation such employer or insurance carri-
 er  shall,  either  on or before the eighteenth day after disability, or
 within ten days after the employer first has knowledge  of  the  alleged
 accident, whichever period is the greater, begin paying compensation and
 shall  immediately  notify  the  chair  in  accordance with a form to be
 prescribed by him, that the payment of compensation has begun,  accompa-
 nied by the further statement that the employer or insurance carrier, as
 the  case may be, will notify the chair when the payment of compensation
 has been stopped.  NOTWITHSTANDING ANY OTHER CONTRARY PROVISION OF  LAW,
 THE  PENALTIES  DESCRIBED  IN PARAGRAPH (E) OF SUBDIVISION THREE OF THIS
 SECTION SHALL NOT APPLY TO THIS PARAGRAPH.
   (d) Whenever for any reason compensation payments cease, the  employer
 or  its  insurance carrier shall within sixteen days thereafter, send to
 the chair a notice on a form prescribed by the chair that  such  payment
 has  been  stopped,  which  notice shall contain the name of the injured
 employee or his or her principle dependent, the date  of  accident,  the
 date to which compensation has been paid and the whole amount of compen-
 sation  paid. [In case the employer or its insurance carrier fails so to
 notify the chair of the cessation of payments within sixteen days  after
 the  date  on  which  compensation has been paid, the board may impose a
 penalty upon such employer or its insurance carrier  in  the  amount  of

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD15147-02-2

 S. 8693                             2

 three hundred dollars, which shall be paid to the claimant. Such penalty
 shall be collected in like manner as an award of compensation.]
   §  2.  The  closing  paragraph  of  paragraph  (a) of subdivision 2 of
 section 25 of the workers' compensation law, as amended by section 1  of
 subpart  D  of part NNN of chapter 59 of the laws of 2017, is amended to
 read as follows:
   If the insurance carrier  shall  fail  [either]  to  [file  notice  of
 controversy  or]  begin  payment  of  compensation within the prescribed
 period or within ten days after receipt of a copy of the notice required
 in section one hundred ten of this  chapter,  whichever  period  is  the
 greater,  the  board may impose a penalty in the amount of three hundred
 dollars, which shall be in addition to all other penalties provided  for
 in this chapter and shall be paid to the claimant. Such penalty shall be
 collected in like manner as an award of compensation.
   §  3.  Paragraph  (g)  of  subdivision 3 of section 25 of the workers'
 compensation law is REPEALED.
   § 4. This act shall take effect immediately.

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