Senate Bill S2776

                                 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.

                                 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.