NY State Senate Bill 2017-S4520

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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2018	referred to labor
Feb 16, 2017	referred to labor

co-Sponsors

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2017-S4520 (ACTIVE) - Details

Current Committee:: Senate Labor
Law Section:: Workers' Compensation Law
Laws Affected:: Amd §15, Work Comp L

2017-S4520 (ACTIVE) - Summary

Relates to the schedule of compensation in case of disability; provides that any difference in compensation rate paid during a period of temporary disability and the rate of payment after classification of permanent disability shall be paid by the employer or credited to the employer in weekly installments during the continuance of payments for such permanent partial disability.

2017-S4520 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S4520        Revised 3/22/17

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

 PURPOSE :

To ensure that an injured worker's schedule of compensation begins on
the date of their specified injury.

 SUMMARY OF PROVISIONS :

Section 1 amends to workers' compensation law to include that in all
cases of permanent partial disability, compensation shall be
calculated beginning on the specific date of injury.

Section 1 paragraph three states that any difference in compensation
rate paid during a period of temporary disability and the rate of
payment after classification of permanent disability shall be paid by
the employer or credited to the employer in weekly installments during
the continuance of payments for such permanent partial disability.

Section 2 is the effective date.

 JUSTIFICATION :

According Oliver Wyman's Review of Current Workers Compensation Costs
and the Oregon Department of Business and Consumer Services biannual
study, New York is consistently ranked among the highest workers'
compensation rates in the nation.

Last year, after the NYS Department of Financial Services approved a
9.3% increase in workers' compensation loss costs, premiums soared,
some as high as 38%.

These unsustainable rates are a reflection of a 10-year-old reform
with flaws in need of repair.

One of the major changes in the 2007 workers' compensation reform
agreement was more than doubling the maximum weekly benefit, indexed
to the average weekly wage, from $400 to $852 for durational caps on
permanent partial disability (PPD) claims. However, this change did
not have the intended benefits on reducing costs.

After the 2007 workers' compensation reform agreement, the percentage
of Lost Time (LT) claims identified as either PPD or temporary total
disability (TTD) claims with durations lasting longer than 52 weeks
began to increase, from 48% in 2007 to 59%. in 2011. While some claims
will close with no permanent partial benefits (categorized as TTD),
many claims currently classified as TTD will ultimately become
permanent partial disability (PPD) claims. For these claims, the
period of time on total disability before receiving an impairment
rating or scheduled loss of use award is referred to as the "healing
period."

The average time from the date of injury to the date of disability
rating in New York has increased to over 8 years after the 2007
reforms. Due to some efforts by the workers' compensation board, that
number has come down to about 4.5 years, still longer than anticipated
by the 2007 legislation.

The magnitude of the increase to "healing periods" since 2007 can be
illustrated by considering a $600 per week benefit paid for an
additional 52 weeks, which adds over $30,000 to the cost of a claim.


Lost Time claims have increased due to the extension of time on total
disability before receiving an impairment rating, as well as high PPD
awards in comparison to costs in other states. The average LT claim in
New York is now expected to have costs well over $100,000. By this
measurement, New York State is an outlier.

From 2001-2006 (pre-reform), lost-time claim costs increased 16%
nationwide, yet increased 28% in New York during the same time period
- a 14% difference. However, after the 2007 reform was enacted, LT
claim costs in New York increased by almost 50%, while nationwide LT
claim costs increased only 13% (from 2006 through 2012).

This bill will correct one of the flaws of the 2007 reforms. Because
PPD duration limits on non-scheduled PPD claims implemented by the
2007 legislation do not include the "healing period," the duration
"clock" does not start until an impairment rating is received. The
fundamental oversight in the 2007 is the lack of a maximum duration on
the "healing period" in the statute.

This legislation begins the clock at "date of injury" and includes a
mechanism for repayment of the difference between TTD and PPD to
either party after classification. With gross premiums over $5 billion
and more in self-insured municipalities, authorities and businesses,
the costs of New York's workers' compensation system have grown
increasingly expensive and the system's in need of more reform.  This
return to the intended outcomes of the 2007 reform could decrease
system costs by double digits.

 LEGISLATIVE HISTORY :

New bill.

 FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
Immediately.

2017-S4520 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4520
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             February 16, 2017
                                ___________
 
 Introduced  by  Sen.  AKSHAR -- 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 the sched-
   ule of compensation in case of disability
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Paragraph w of subdivision 3 of section 15 of the workers'
 compensation law, as amended by chapter  6  of  the  laws  of  2007,  is
 amended to read as follows:
   w.  Other  cases.  In all other cases of permanent partial disability,
 the compensation shall  be  sixty-six  and  two-thirds  percent  of  the
 difference  between  the injured employee's average weekly wages and his
 or her wage-earning capacity thereafter in the same employment or other-
 wise.  Compensation under this paragraph shall  be  payable  during  the
 continuance  of such permanent partial disability, but subject to recon-
 sideration of the degree of such impairment by  the  board  on  its  own
 motion or upon application of any party in interest however, all compen-
 sation  payable  under  this paragraph shall not exceed (i) five hundred
 twenty-five weeks, BEGINNING AT THE DATE OF INJURY, in  cases  in  which
 the  loss  of wage-earning capacity is greater than ninety-five percent;
 (ii) five hundred weeks, BEGINNING AT THE DATE OF INJURY,  in  cases  in
 which  the  loss of wage-earning capacity is greater than ninety percent
 but not more than ninety-five percent; (iii) four  hundred  seventy-five
 weeks,  BEGINNING  AT  THE DATE OF INJURY, in cases in which the loss of
 wage-earning capacity is greater than eighty-five percent but  not  more
 than  ninety  percent;  (iv)  four hundred fifty weeks, BEGINNING AT THE
 DATE OF INJURY, in cases in which the loss of wage-earning  capacity  is
 greater  than  eighty percent but not more than eighty-five percent; (v)
 four hundred twenty-five weeks, BEGINNING AT  THE  DATE  OF  INJURY,  in
 cases  in which the loss of wage-earning capacity is greater than seven-
 ty-five percent but not more than  eighty  percent;  (vi)  four  hundred
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD09483-01-7

 S. 4520                             2
 
 weeks,  BEGINNING  AT  THE DATE OF INJURY, in cases in which the loss of
 wage-earning capacity is greater than seventy percent but not more  than
 seventy-five  percent; (vii) three hundred seventy-five weeks, BEGINNING
 AT THE DATE OF INJURY, in cases in which the loss of wage-earning capac-
 ity  is  greater  than  sixty percent but not more than seventy percent;
 (viii) three hundred fifty weeks, BEGINNING AT THE DATE  OF  INJURY,  in
 cases  in  which the loss of wage-earning capacity is greater than fifty
 percent but not more than  sixty  percent;  (ix)  three  hundred  weeks,
 BEGINNING  AT  THE  DATE  OF INJURY, in cases in which the loss of wage-
 earning capacity is greater than forty percent but not more  than  fifty
 percent;  (x)  two  hundred seventy-five weeks, BEGINNING AT THE DATE OF
 INJURY, in cases in which the loss of wage-earning capacity  is  greater
 than  thirty  percent  but not more than forty percent; (xi) two hundred
 fifty weeks, BEGINNING AT THE DATE OF INJURY, in cases in which the loss
 of wage-earning capacity is greater than fifteen percent  but  not  more
 than  thirty percent; and (xii) two hundred twenty-five weeks, BEGINNING
 AT THE DATE OF INJURY, in cases in which the loss of wage-earning capac-
 ity is fifteen percent or less. For those claimants classified as perma-
 nently partially disabled  who  no  longer  receive  indemnity  payments
 because  they  have surpassed their number of maximum benefit weeks, the
 following provisions will apply:
   (1) There will be a presumption that medical services  shall  continue
 notwithstanding  the  completion of the time period for compensation set
 forth in this section and the burden of going forward and the burden  of
 proof  will  lie with the carrier, self-insured employer or state insur-
 ance fund in any application before the board to discontinue or  suspend
 such services. Medical services will continue during the pendency of any
 such application and any appeals thereto.
   (2)  The board is directed to promulgate regulations that establish an
 independent review and appeal by an  outside  agent  or  entity  of  the
 board's  choosing  of  any  administrative  law judge's determination to
 discontinue or suspend medical services before a final determination  of
 the board.
   (3) ANY DIFFERENCE IN COMPENSATION RATE PAID DURING A PERIOD OF TEMPO-
 RARY  DISABILITY  AND THE RATE OF PAYMENT AFTER CLASSIFICATION OF PERMA-
 NENT DISABILITY SHALL BE PAID BY THE EMPLOYER OR CREDITED TO THE EMPLOY-
 ER IN WEEKLY INSTALLMENTS DURING THE CONTINUANCE OF  PAYMENTS  FOR  SUCH
 PERMANENT PARTIAL DISABILITY.
   § 2. This act shall take effect immediately.

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Senate Bill S4520

Sponsored By

Archive: Last Bill Status - In Senate Committee Labor Committee

co-Sponsors

2017-S4520 (ACTIVE) - Details

2017-S4520 (ACTIVE) - Summary

2017-S4520 (ACTIVE) - Sponsor Memo

2017-S4520 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S4520

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Sponsored By

Fred Akshar

Archive: Last Bill Status - In Senate Committee Labor Committee

co-Sponsors

George Amedore

Thomas D. Croci

John A. DeFrancisco

Martin J. Golden

2017-S4520 (ACTIVE) - Details

2017-S4520 (ACTIVE) - Summary

2017-S4520 (ACTIVE) - Sponsor Memo

2017-S4520 (ACTIVE) - Bill Text download pdf

Comments