Assembly Bill A7558

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7558
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               April 1, 2025
                                ___________
 
 Introduced  by M. of A. REYES -- read once and referred to the Committee
   on Labor
 
 AN ACT to amend the workers' compensation law, in relation to  providing
   for  the  enrollment  of certain persons in direct deposit for compen-
   sation payments
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Paragraphs  (a) and (b) of subdivision 9 of section 25 of
 the workers' compensation law, as amended by chapter 9 of  the  laws  of
 2021, are amended and a new paragraph (e) is added to read as follows:
   (a)  Compensation payments shall be required, upon the written request
 from an injured worker or a person entitled to a death benefit  provided
 by  this  chapter, to be deposited directly in a bank for any purpose to
 an account in the name of such injured  worker  or  person  entitled  to
 death benefits, and duly filed in accordance with such regulations. Each
 person  eligible  to  receive  payment of compensation or death benefits
 under this section shall be notified  of  the  option  to  receive  such
 payment  in  the form of direct deposit from the carrier or self-insured
 employer, such notice to be promulgated  by  the  board.  Such  eligible
 person  shall  also  be provided the means necessary to enroll in direct
 deposit pursuant to this paragraph in a manner specified by  regulations
 of  the board at the same time as notice is given pursuant to this para-
 graph. PERSONS ENTITLED TO A DEATH BENEFIT WHO ARE ELIGIBLE  TO  RECEIVE
 COMPENSATION PAYMENTS BY DIRECT DEPOSIT UPON WRITTEN REQUEST PURSUANT TO
 THIS SUBDIVISION SHALL INCLUDE:
   (I) A SURVIVING SPOUSE;
   (II)  A  SURVIVING DOMESTIC PARTNER AS DEFINED IN SECTION FOUR OF THIS
 CHAPTER;
   (III) A DEPENDENT CHILD OR CHILDREN; OR
   (IV) ANY OTHER PERSON  ENTITLED  TO  A  DEATH  BENEFIT  UNDER  SECTION
 SIXTEEN OF THIS ARTICLE.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08432-01-5
              

 A. 7558                             2
 
   (b)  The board is hereby authorized to promulgate reasonable rules and
 regulations, as may be necessary, to administer the  direct  deposit  of
 compensation  payments,  INCLUDING  PAYMENTS  TO  A  SURVIVING SPOUSE, A
 SURVIVING DOMESTIC PARTNER AS DEFINED IN SECTION FOUR OF THIS CHAPTER, A
 DEPENDENT  CHILD  OR  CHILDREN,  OR ANY OTHER PERSON ENTITLED TO A DEATH
 BENEFIT UNDER SECTION SIXTEEN OF THIS ARTICLE.  Such  regulations  shall
 permit the deposit of compensation payments to be split between multiple
 accounts by either a dollar amount or exact percentage, provided, howev-
 er, such regulations may establish a minimum dollar amount and may limit
 the maximum number of partial deposits allowed.
   (E)  (I) IF AN EMPLOYER OR INSURANCE CARRIER FAILS TO ENROLL AN ELIGI-
 BLE PERSON IN DIRECT DEPOSIT WITHIN TWENTY-FIVE DAYS AFTER A REQUEST HAS
 BEEN MADE PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION, THERE SHALL BE,
 PAID BY THE EMPLOYER OR, IF INSURED, THE INSURANCE CARRIER, A PENALTY OF
 TWENTY PERCENT OF THE COMPENSATION  DUE  PER  PAY  PERIOD,  WHICH  SHALL
 ACCRUE  FOR THE BENEFIT OF THE INJURED WORKER OR SUCH WORKER'S SURVIVING
 SPOUSE OR  DEPENDENTS,  AND  AN  ADDITIONAL  PENALTY  OF  THREE  HUNDRED
 DOLLARS. SUCH PENALTIES SHALL BE PAID TO SUCH ELIGIBLE PERSON.
   (II)  THE  BOARD  MAY,  UPON REQUEST BY AN EMPLOYER OR INSURER, EXCUSE
 SUCH EMPLOYER OR INSURER FROM SUCH PENALTY IF SUCH PERSON COULD  NOT  BE
 ENROLLED  IN  DIRECT DEPOSIT DUE TO CIRCUMSTANCES OUTSIDE OF THE CONTROL
 OF SUCH EMPLOYER OR INSURER.
   § 2. This act shall take effect immediately.