DISCLAIMER: This article is intended only as general information about workers compensation penalty resolution. It is not legal advice. Additionally, some laws and procedures might have changed since the original post date. If you need specific legal advice about your penalty, please contact an experienced attorney to discuss your unique circumstances.
We are committed to guiding you through the penalty resolution process as swiftly and cost-effectively as possible under the unique circumstances of your case. Regardless of when you received the penalty notice from the New York State Workers Compensation Board, rest assured that resolution is still possible.
The Board’s goal isn’t to put you out of business. However, it does have a fiduciary duty to the taxpayers of NYS. Ensuring you comply with your obligation to provide workers compensation insurance for your employees is part of the Board’s duty. Securing that insurance can also help you avoid bankruptcy when accidents happen.
Case Study: Evaluating the True Costs of Non-Compliance
Susan was a 45-year-old receptionist with a prior back injury that occasionally caused her discomfort, but it didn’t cause her to take time off from work. One day, as she was leaving work, she dropped her keys on the floor in the lobby. When she bent over to pick them up, she felt a sharp pain and was unable to stand up straight.
After visiting an immediate care center, Susan was told to stay out of work for a week and follow up with her primary care physician (PCP). She did, and her PCP referred her to a WC doctor who referred her to an attorney who helped her achieve a 50% lost wage-earning capacity (LWEC) classification. This entitled her to 300 weeks of compensation at a $200.00 LWEC rate, or $60,000.00. The costs of her medical care and lost earnings before the LWEC classification were an additional $75,000.00.
The owners of the business that employed Susan were personally liable for more than $135,000.00 in direct expenses, plus the cost of their unsuccessful defense. If they had secured workers compensation insurance, the premiums for one year would have probably been less than $1,000.00, and an attorney would have appointed to defend them in her claim.
How We Can Help
Once there is an underlying injury claim, we are not in a good position to help with the penalty resolution. At that point, the Uninsured Employer’s Fund will try to mitigate the damages, and you will have to pay for the expenses of the claim. That is often in lieu of the penalties that have been accumulating at a rate of $2,000.00 for every 10-day period you are uninsured.
As long as there is not an open or pending employee injury claim, here’s what you can expect during the penalty resolution process:
Quick Action from Us
Taking immediate action in a penalty resolution matter can be very helpful in showing good faith. Even if it’s a mere acknowledgment of the penalty notice, it can help you avoid action to escalate the case, such as:
- Referral of the matter to a collection agency
- Judgment entered against you in court
- Frozen bank accounts
- Stop work orders
- Warrants for your arrest
We will typically notify the Board of our representation as soon as you sign the Professional Services Agreement and pay a deposit for our fees.
Varied Timelines at the Board
The penalty resolution timeline isn’t set in stone and can vary based on factors like business complexity or insurance history. When you furnish comprehensive information from the outset, we do our best to expedite the process with the Board.
Requests for More Information
If the Board’s examiner can’t easily tell that a worker does not need to be covered by worker’ compensation, disability, and Paid Family Leave insurance, you will be asked for additional information and evidence. This can be annoying and feel invasive, but it is in your best interest to provide the information. If you do not, the Board will presume the worker was an employee requiring coverage, and the amount required for penalty resolution will probably be higher than average.
Additional Penalty Notices
Submitting an Application for Review of Penalties doesn’t automatically stop or stay the penalty accumulation. Forwarding penalty statements to us enables timely reminders to the Board, often prompting a swifter penalty resolution.
Interagency Collaboration
The Board may collaborate with other state agencies, potentially triggering inquiries into payroll tax withholdings or other employment-related matters. Should you require assistance in handling such inquiries, we can connect you with qualified legal professionals specializing in tax controversies, Wage and Hour claims, or other matters ancillary to the penalty resolution.
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Frequently-Asked Questions About Penalty Negotiations
What happens if the Board finds me liable, but I don’t have WC insurance?