The New York State Senate

§ 21-a. Temporary payment of compensation. 1. Notwithstanding any
other provision of this chapter to the contrary, in any instance in
which an employer is unsure of the extent of its liability for a claim
for compensation by an injured employee pursuant to this chapter, such
employer may initiate compensation payments and payments for prescribed
medicine and continue such payments for one year, without prejudice and
without admitting liability, in accordance with a notice of temporary
payment of compensation, on a form prescribed by the board.

2. The notice of temporary payment of compensation authorized by
subdivision one of this section shall be delivered to the injured
employee and the board. Such notice shall notify the injured employee
that the temporary payment of compensation and prescribed medicine shall
not be deemed to be an admission of liability by the employer for the
injury or injuries to the employee. The board, upon receipt of a notice
of temporary payment of compensation, shall send a notice to the injured
employee stating that:

(a) the board has received a notice of temporary payment of
compensation relating to such injured employee;

(b) the payment of temporary compensation and prescribed medicine and
the injured employee's acceptance of such temporary compensation and
prescribed medicine shall not be an admission of liability by the
employer, nor prejudice the claim of the injured employee;

(c) the payment of temporary compensation and prescribed medicine
shall terminate on the elapse of: one year, or the employer's contesting
of the injured employee's claim for compensation and prescribed
medicine, or the board determination of the injured employee's claim,
whichever is first; and

(d) the injured employee may be required to enter into an agreement
with the employer to ensure the continuation of payments of temporary
compensation and prescribed medicine.

3. An employer may cease making temporary payments of compensation and
prescribed medicine if such employer delivers within five days after the
last payment, to the injured employee and the board, a notice of
termination of temporary payments of compensation on a form prescribed
by the board. Such notice shall inform the injured employee that the
employer is ceasing temporary payment of compensation and prescribed
medicine. Upon the cessation of temporary payments of compensation and
prescribed medicine, all parties to any action pursuant to this chapter
shall retain all rights, defenses and obligations they would otherwise
have pursuant to this chapter without regard for the temporary payment
of compensation and prescribed medicine.

4. The failure of an employer to provide the notice of termination,
pursuant to subdivision three of this section, within one year of the
commencement of temporary payment of compensation shall be deemed to be
an admission of liability by the employer and the notice of temporary
payment of compensation shall be converted to a notice of compensation
payable.