New York Employment Lawyer Blog

A: Our New York Employment Lawyers have represented many small business owners, individuals and homeowners (in cases involving nannys and household workers) and argued their best defenses before the Board in appeal and inquiries. We have saved our clients over one million dollars in penalties and fines. In doing so, our attorneys have assisted clients avoid bankruptcy, saved their life savings and protected their other assets. We can help you. Call our office to learn what we can do in your case. The worst step you can make is to ignore the notice as the penalties can increase significantly. Generally, employers are required to carry insurance for instances when an employee gets injured in the workplace. If an employer is not exempt and is found to have violated the statute, below are some of the potential consequences it could face:

1. Criminal: Under Section 52(1)(a) of the WC law, employers with five or more employees who violate the law are subject to a class E felony with monetary fine of no less than $5,000.00 and no more than $50,000.00. Companies with five or less workers are subject to a misdemeanor punishable by a monetary fine of no more than $5,000.00. Further, repeat offenders within the past five years, are subject to class D felony. These cases may be referred to the Attorney General's office and local district attorney for prosecution. This is a serious matter.

2. Civil and Criminal - Misrepresentation: A company is required to keep accurate records of the number of employees, classification, wages and accidents for its business for the prior 4 years (WCL §131). If an employer does not keep proper records or tampers with their integrity by concealing data or understating data it may be subject to significant monetary fines. In addition, under Sec. 52(1)(d), there are potential criminal consequences for misrepresenting payroll and employment records. Some examples of violations include misclassifying works as "independent contractors" and not employees, and misstating the business' industry to avoid paying higher premiums (i.e., calling construction workers as administrative staff). This is an area of scrutiny.

3. Civil Money Damages: Under Sec. 52(5), non-compliant employers face penalties of $2,000 dollars for each ten day period of non-compliance, which shall be paid into the uninsured employers' fund. This penalty can be over $100,000.00 especially if the period of non-compliance is extended over years. Ignoring a notice from the Board is worst thing that you can do. The penalties can increase and converted later to a judgment when the Board can take enforcement steps to collect. For corporations, the president, secretary and treasurer can also be liable for the penalties.

If an employer does not contact the Board, the penalty may be converted into a judgment at a later point. Thereafter, the Board could seize your bank accounts and place a lien on your real property. For example, one client could not sell his house in Nassau County because a lien was placed on it. We acted quickly and were successful in removing the lien and saved our client's real estate deal. It would have been a disaster if he lost his buyer and could not sell his home. If you received a notice, it is very important to take this matter seriously. Contact one of our skilled lawyers at (800) 893-9645 and learn how to protect yourself and your assets.

Disclaimer: 

Thank you for visiting our Blog. This blog provides general information and thoughts about various employment law issues primarily in the New York Tri-State area and occasionally in other areas. You are welcome to read the posts. However, do not construe any content on this blog as legal advice or the creation of an attorney-client relationship. Again, we provide the content only for informational purposes. You should not make decisions based information on our blog since the application of the law depends on the facts and each situation may be different. In addition, the law in most jurisdictions is different and changes constantly and we make no representations that any information on our blog has been updated. The Blog should not be used as a substitute for competent legal advice from an experienced employment law attorney in your state or jurisdiction.

On or about September 30, 2011, the NYS WCB issued millions of dollars in fines, penalties and judgments against business owners (many of them are mom and pop shops) and residents throughout New York State pursuant to Section 52(5) of the statute. Our attorneys have represented many clients before the Board and successfully eliminated or reduced the fines and penalties for individuals and companies. In addition, we have vacated judgments for clients in the past who were unable to secure financing or sell their property due to a real property lien. Contact our office at (800) 893-9645 to learn how we can assist you. You spent a lifetime building your business - don't let New York State take away your business and life savings over a technicality.

Below are some frequently asked questions and answers.

Q: What should I do if New York State issues my small business a penalty, fine, judgment or a Stop Work Order for not having Workers' Compensation or Disability Insurance?

A: You should read the notice thoroughly but do not respond by making any damaging admissions which can cost you thousands of dollars in the future. Instead, call our experienced New York Lawyers who have over 25 years of legal experience and have successfully saved small businesses over a million dollars.

Q: What could happen if I ignore the Workers' Compensation Notice?

A: The worst thing you can do is to ignore the Notice. Your failure to answer the Notice in a timely manner could result in a judgment being issued against your business and, possibly, you personally. Your business could be found responsible for thousands of dollars in fines and penalties in your absence. In addition, this may result in you paying higher insurance premiums for several years. In certain circumstances, this can be avoided by hiring the right lawyer.

In addition, the New York State Workers' Compensation Board could issue a Stop Work Order preventing you from operating your business.

Q: What is a judgment?

A: A valid money judgment purports to resolve all the contested issues and terminates a claim and may be considered the official decision of the law on the action. As a result of a judgment, New York State can freeze your business' bank accounts, place a lien on your business's real property and equipment and adversely affect your credit report and ability to work vendors.

Q: I already closed my business. Can I be personally responsible for the penalty or judgment?

A: It depends on the circumstances. For more information, call our office and speak with one of our experienced Workers' Comp Defense Lawyers.

Q: What can your Law Firm do for me?

A: Our New York attorneys can fight to protect your business and your assets. Our lawyers know the relevant statutes, the law and the administrative procedures. Based on our arguments and presentation, we have saved companies over one million dollars by obtaining a rescission and/or complete or partial reduction of the judgment. We welcome the opportunity to discuss how we can defend your business against this judgment and protect your company's valuable business interests and assets. Your business may be exempt from workers' compensation coverage. Call us now at (800) 893-9645 for a free telephone consultation to learn how to protect and defend your business.

Client Testimonials

Our accountant and insurance broker told us we didn't need workers' compensation insurance coverage for our nanny. Turns out they were wrong and we received a huge penalty. They could not help us. We are lucky to find your law office. Mr. Sanchala is a truly gifted and caring lawyer who helped us in a real time of need. Thank you. - Former Client

I did not know I had a workers compensation judgment until I went to sell my house. That is when my nightmare started. My real estate attorney told me my house had a lien on it and I could not sell it until I paid off a judgment to the New York State Workers Compensation Board. My real estate attorney could not help me. My insurance broker could not help me. I interviewed several attorneys and hired Mr. Sanchala. He is extremely bright and a strong advocate. He was able to reduce my penalty and remove the judgment. I hope to sell my house soon! - Former Client

I cannot thank you enough for your legal services. My wife and I could not sleep at night with the tremendous New York State workman compensation fines hanging over us and our family. Mr. Sanchala is an expert attorney. Thanks to your lawyers our family's business is still open. We could not have been happier. - Former Client

Continue reading "Our Lawyers Protect Small Businesses who are Facing a Fine, Penalty or Judgment by the NY Workers Compensation Board for Failure to Carry WC Insurance" »

A: This is a very serious problem affecting your business. A Stop Work Order means that you MUST cease all operations and that you cannot conduct any work and earn any money until the Order is officially removed. Further, your receipt of an Order may lead to disbarment from Public Works contracts or subcontracts for one (1) year or up to five (5) years. The Order or a Penalty Notice can be devastating to your business. Section 141(a) of the Workers Compensation Law empowers the Board to issue Stop Work Orders.

You should read the Order and Notice thoroughly. Your response must be carefully considered and, if done incorrectly or inaccurately, you risk making damaging admissions which can cost you thousands of dollars in penalties and a possible subsequent judgment. Instead, contact our experienced New York Workers' Compensation Penalty and Fine Lawyers who have over 25 years of legal experience and have successfully saved small businesses hundreds of thousands of dollars from the government.

Contact us now for a free telephone consultation. You spent a lifetime building your business - don't let New York State take away your business and life savings over a technicality.

A: Our Workers Compensation Penalty and Fine Attorneys will protect your business and your assets. Our New York Lawyers know the Workers' Compensation law and the administrative procedures. Based on our arguments and legal presentations, we have saved companies over $1,000,000.00 dollars by obtaining a rescission and/or complete or partial reduction of the judgment or penalty notice. Call our Attorneys now to discuss how we can defend your business against this Stop Work Order, Penalty or Judgment. Your business may be exempt from the law or you have strong legal defenses. Call us now at (800) 893-9645 for a confidential telephone consultation to learn how to protect and defend your business.

Recently, New York State has increased its efforts to penalize businesses that do not comply with the Workers' Compensation Law and, as part of its process, the State has significantly increased the monetary penalties by approximately ten fold. Currently, covered employers are subject to a $2,000.00 penalty for every ten days of non-compliance. This is a significant increase from the prior penalty amount of $250.00. Once the State has obtained a judgment, it can seize your bank accounts and place liens on valuable and crucial business assets. Collection agencies will be assigned to execute on your account. If unpaid, the amount of the judgment may increase with the accumulation of interest. In addition, a judgment can negatively impact a company's credit report and score, its ability to obtain financing, and its relationships with vendors. The worse thing you can do is to ignore the Notice and hope that it will go away. Unfortunately, that is not a realistic or practical option. Call our office to learn your rights.

Disclaimer: 

Thank you for visiting our Blog. This blog provides general information and thoughts about various employment law issues primarily in the New York Tri-State area and occasionally in other areas. You are welcome to read the posts. However, do not construe any content on this blog as legal advice or the creation of an attorney-client relationship. Again, we provide the content only for informational purposes. You should not make decisions based information on our blog since the application of the law depends on the facts and each situation may be different. In addition, the law in most jurisdictions is different and changes constantly and we make no representations that any information on our blog has been updated. The Blog should not be used as a substitute for competent legal advice from an experienced employment law attorney in your state or jurisdiction.

A: It is very important for you to seek legal advice from an experienced Worker's Compensation Penalty Defense Lawyer as soon as possible as the time period to assert any potential defenses is very limited and, if incorrectly handled, the monetary penalties can exceed $100,000.00. Our attorneys have helped homeowners and small business owners save hundreds of thousands of dollars in fines and can help you. In certain circumstances, you are required to carry workers compensation insurance coverage for domestic workers including nannies, and you are thereby subject to penalties for non-compliance. For example, if your domestic worker is a "live-in" or works more than 40 hours per week for you, you may be required to have workers compensation insurance coverage.

Our attorneys are familiar with the law and your potential defenses. Most people incorrectly assume that their homeowner's insurance or business insurance policies are sufficient but that is not true when workers compensation insurance is required. Ideally, you should consult with an experienced attorney prior to hiring a domestic worker so you can properly determine the appropriate tax treatment and insurance coverage issues. That being said, if you have received a penalty notice from the Workers Compensation Board because you had a domestic worker, call now to speak with our penalty defense attorneys now at (800) 893-9645.

Recently, our New York Worker's Compensation Defense Attorneys have been seeing more employers being audited by the New York State Department of Labor, Unemployment Insurance Division for non-payment of employment taxes. Employers are required to pay 6.1 percent of each employee's first $8,500 in wages for unemployment insurance benefits taxes. The typical scenario occurs when a company has classified individuals as independent contractors instead of employees. It is possible that this classification was proper and legal but many employers are unprepared to defend and fight the audit. In some cases, employers decide to simply pay the alleged back taxes owed for unemployment insurance benefits so that they spend time running their business. This decision can have disastrous results as the New York State Department of Labor, Unemployment Insurance Division, shares its information with the New York State Worker's Compensation Board. Shortly after these companies decide to pay the unpaid unemployment insurance benefit taxes, which are generally not significant, they are surprised to learn that they hit with a tremendous bill (many times over $100,000.00) from the New York State Worker's Compensation Board. Critically, these employers defenses may be compromised from their earlier admission by paying the New York State Department of Labor taxes. Companies and employers must strategically consider all of its responses to government agencies especially agencies that could issue penalties in excess of $100,000.00.

Our New York Worker's Compensation Board Defense Attorneys have been fighting for businesses for years and removing and reducing penalties and judgments. Call now to speak with one of our New York Worker's Compensation Board Attorneys and learn how we can help protect your business (800) 893-9645.

WCB UPDATE: If you have received a penalty, a notice of judgment or fine by the WCB, check out our FAQs. Our lawyers have saved our clients over $1,000,000.00. Call one of our experienced attorneys for a free telephone consultation at (800) 893-9645.

This summer, the Enforcement Unit of the New York State Workers Compensation Board (WCB) is issuing more and more judgments and penalties against small businesses. Call now for our New York Workers Compensation Board Defense Attorneys to protect your business and personal assets. This Blog post is an update from our prior post which detailed the serious issue of WCB fines and penalties affecting small businesses.

In a ridiculous effort to raise money for the bankrupt state, New York is fining businesses for violating the following statutes:

• Failure to Secure Workers' Compensation Insurance Coverage (Workers' Compensation Law Section 52(5);
• Failure to Secure Disability Benefits Coverage (Workers' Compensation Law Section 220);
• Failure to Keep Required Employment Records (Workers' Compensation Law Section 131); and
• Failure to Post Notice of Workers' Compensation Coverage (Workers' Compensation Section 51).

Most of the penalty amounts were increased to $2,000 for every 10 day uninsured period. These draconian penalties and judgments are causing many stores to close their business. However, that does not stop the state from its collection efforts as the business owners are personally liable for these fines and penalties. Business owners could be exposed to criminal penalties as well. There are many defenses available to business owners. Our New York State Workers' Compensation Board Attorneys have protected many business owners from these excessive fines and can defend you and your business too. Call now (800) 893-9645 for a no-cost telephone consultation.

Continue reading "Part Two: Protect Your Small Business from Excessive Workers' Compensation Board (WCB) Judgments and Penalties" »

CLIENT ALERT: If you have received a penalty, a notice of judgment or fine by the WCB, check out our FAQs. Contact one of our experienced attorneys for a free telephone consultation. Our Workers Compensation Defense Lawyers have saved small businesses and homeowners over One Million dollars in workers compensation penalties and fines.

In an effort to raise money in this recession, New York State has issued hundreds of penalties to small businesses for failing to have workers' compensation insurance. In fact, the New York State Workers' Compensation Board entered judgments against approximately 10,000 small businesses. These judgments are millions of dollars. While it is fair to penalize employers for failing to carry worker's compensation insurance, the exorbitant amount of money that New York State is penalizing employers does not seem fair. For example, if a small business did not a carry worker's compensation insurance policy which is typically approximately $500.00, New York State may have fined that same small business employer over $50,000.00 for this violation. Among the businesses hit with the judgment was Al Franken, former Star of Saturday Night Live and current Minnesota Senator. While there is an important policy reason for employers to carry worker's compensation insurance to protect employees and so that the costs are proportionately spread among all employers, these level of draconian penalties are causing employers to close their operations and terminate any employees they may have had. In the end, employees are losing their jobs, small businesses are closing and New York State is stuck referring the judgments to debt collectors to collect these improbable amounts.

Under the New York State Workers' Compensation Law, employers are required to carry insurance for employees for work-related accidents, injuries or illness. If an employer has more than one full-time or part-time employer, the employer is required to obtain a workers' compensation insurance policy. The following employers are exempt from coverage:

• The business is owned by one person and said person holds all corporate office titles

• The business is owned by two corporate officers and they hold all of the corporate office titles and are the only employees.

• All businesses with three or more shareholders or corporate officers must have workers' compensation insurance coverage and are not exempt.

In one of the hardest provisions for employers, if a well-intentioned family member (including a spouse or adult child) works for the business and even if the family member does not collect a salary, that family member is considered an employee by the Workers Compensation Board. The Workers Compensation Board strongly scrutinizes small businesses that utilize independent contractors and may consider them employees depending on the circumstances. Simply calling an individual an independent contractor is not a sufficient basis for not carrying worker's compensation insurance coverage.

Continue reading "New York workers' compensation penalties and fines are bankrupting small businesses" »