DISCLAIMER: This post gives a general overview of workers compensation (WC) penalty negotiations in New York. It is not legal advice or a guarantee of any particular outcome. If you require information or advice applied to your unique WC coverage situation, please make an appointment to discuss it with an attorney experienced in WC penalty resolution.
By the time most clients come to us with a penalty notice from the New York State (NYS) Workers Compensation Board (WCB), their penalties has grown to several thousands of dollars. We’ve even seen them as high as $500,000.00. Don’t panic. We have resolved hundreds of penalties and can help.
In the meantime, here are answers to some of the frequently-asked questions employers ask.
Should I appeal the Workers’ Compensation Penalty issued against my business?
Most likely. The WCB’s Compliance Unit has two primary goals:
- Ensure workers injured in the course and scope of work in NYS receive proper compensation for their injuries, and
- Enforce WCL Section 50, which mandates workers’ compensation coverage
If you believe there’s been an honest mistake in coverage or worker classification, let’s explore whether you have grounds to appeal the penalty or need for coverage.
Do I need a lawyer to challenge the penalty?
Probably. Although we are do-it-yourselfers with many repairs, and I wrote the book on DIY Conflict Resolution, this is not an issue we recommend you navigate alone.
If cost is a concern, many legal clinics at local bar associations and law schools offer free and low-cost services for low-income individuals. We also typically charge a flat fee based on the number of workers you had and how long you were uninsured.
Do you have experience in my industry?
Maybe. We have resolved WC penalties for:
- Domestic employers
- Family business owners
- Licensed professionals
- Closed businesses
- Overwhelmed small business owners
- Film producers
- Publishers
- Musicians
- Other creative professionals
Have you handled cases like mine?
Most likely. We have successfully resolved WC penalties when employers:
- Mistakenly believed their sole proprietors and freelancers were independent contractors
- Misunderstood the WC riders to their homeowners insurance policies
- Didn’t understand how injuries to live-in housekeepers, nannies, or elder companions would be covered
- Forgot to cover non-owner family members after their 18th birthdays
- Failed to secure coverage when employees of their out-of-state businesses began working remotely from NYS
- Ceased operations without notifying the Board
Navigating penalty negotiations can be complex, but with the right guidance, it’s possible to achieve a favorable outcome. If you’re facing penalties, don’t hesitate to seek legal counsel to protect your interests and ensure compliance with New York State regulations.