S T A T E O F N E W Y O R K
________________________________________________________________________
3293
2025-2026 Regular Sessions
I N A S S E M B L Y
January 27, 2025
___________
Introduced by M. of A. CONRAD -- read once and referred to the Committee
on Labor
AN ACT to amend the workers' compensation law, in relation to recoveries
from a third-party action
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivision 1 and the fifth undesignated paragraph of
subdivision 5 of section 29 of the workers' compensation law, subdivi-
sion 1 as amended by chapter 805 of the laws of 1984 and as further
amended by section 104 of part A of chapter 62 of the laws of 2011, and
the fifth undesignated paragraph of subdivision 5 as amended by chapter
246 of the laws of 1967, are amended to read as follows:
1. If an employee entitled to compensation under this chapter be
injured or killed by the negligence or wrong of another not in the same
employ, such injured employee, or in case of death, [his] SUCH EMPLOY-
EE'S dependents, need not elect whether to take compensation and medical
benefits under this chapter or to pursue [his] SUCH EMPLOYEE'S remedy
against such other but may take such compensation and medical benefits
and at any time either prior thereto or within six months after the
awarding of compensation or within nine months after the enactment of a
law or laws creating, establishing or affording a new or additional
remedy or remedies, pursue [his] SUCH EMPLOYEE'S remedy against such
other subject to the provisions of this chapter. If such injured employ-
ee, or in case of death, [his] SUCH EMPLOYEE'S dependents, take or
intend to take compensation, and medical benefits in the case of an
employee, under this chapter and desire to bring action against such
other, such action must be commenced not later than six months after the
awarding of compensation or not later than nine months after the enact-
ment of such law or laws creating, establishing or affording a new or
additional remedy or remedies and in any event before the expiration of
one year from the date such action accrues. In such case, the state
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06763-01-5
A. 3293 2
insurance fund, if compensation be payable therefrom, and otherwise the
person, association, corporation or insurance carrier liable for the
payment of such compensation, as the case may be, shall have a lien on
the proceeds of any recovery from such other, TO THE EXTENT SUCH RECOV-
ERY IS FOR LOST WAGES OR MEDICAL EXPENSES, whether by judgment, settle-
ment or otherwise, after the deduction of the reasonable and necessary
expenditures, including attorney's fees, incurred in effecting such
recovery, to the extent of the total amount of compensation awarded
under or provided or estimated by this chapter for such case and the
expenses for medical treatment paid or to be paid by it and to such
extent such recovery shall be deemed for the benefit of such fund,
person, association, corporation or carrier. Should the employee or
[his] SUCH EMPLOYEE'S dependents secure a recovery from such other,
whether by judgment, settlement or otherwise, such employee or depen-
dents may apply on notice to such lienor to the court in which the third
party action was instituted, or to a court of competent jurisdiction if
no action was instituted, for an order apportioning the reasonable and
necessary expenditures, including attorneys' fees, incurred in effecting
such recovery. Such expenditures shall be equitably apportioned by the
court between the employee or [his] SUCH EMPLOYEE'S dependents and the
lienor. Notice of the commencement of such action shall be given within
thirty days thereafter to the [chairman] CHAIR, the employer and the
insurance carrier upon a form prescribed by the [chairman] CHAIR. Any of
the foregoing providers of compensation and/or medical benefits which
has recovered a lien pursuant to the provisions hereof against the
recovery of a person injured on or after February first, nineteen
hundred seventy-four and before July first, nineteen hundred seventy-
eight, through the use or operation of a motor vehicle in this state,
shall notify such person by certified mail in a manner to be approved by
the [chairman] CHAIR and the superintendent of financial services of the
responsibility of an "insurer" (as defined in subsection (g) of section
five thousand one hundred two of the insurance law), to reimburse such
person under such circumstances to the extent that the recovered lien
represent first party benefits as defined in article fifty-one of the
insurance law.
A copy of the papers to be used on the application to compromise and
settle the claim must be served as directed by the court or in the same
manner as provided in the civil practice law and rules for a notice of
motion upon the commissioners of the state insurance fund or such offi-
cer thereof designated by them or upon the person, association, corpo-
ration, or insurance carrier, whose written approval would have been
required to compromise such cause of action by the employee or [his]
SUCH EMPLOYEE'S dependents. This notice shall afford them the opportu-
nity to submit affidavits and to be heard by the court on the applica-
tion. A PETITION MAY ALSO BE FILED PURSUANT TO THIS SUBDIVISION ALLOCAT-
ING A PORTION OF THE THIRD-PARTY RECOVERY TO ONLY LOST WAGES AND/OR
MEDICAL TREATMENT.
§ 2. This act shall take effect immediately.