Articles Posted in Workers Compensation Penalty

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Penalty.Picture.Dollar.Photo.Club.1.4.16.jpgOur New York Workers Compensation Defense Attorney has been asked these questions along with others by small business owners and household employers. In general, Pioneer Credit Recovery Inc. is a collection agency that is an agent of the New York State Workers Compensation for certain cases. In general, Pioneer has been engaged by the State to collect monies owed pursuant to a penalty or judgment issued by the Board for an employer’s failure to carry workers compensation insurance coverage. Pioneer does work for other clients and its work is not limited to workers compensation related issues. Below is a text from a letter that Pioneer sent to one of our clients. Here is a link to an article on frequently asked questions regarding a penalty. Our Award Winning NY Employment Law Attorney has helped our clients save over TWO MILLION DOLLARS in the aggregate and are happy to speak with you to see if we can help you.

Since we have not received payment on your delinquent account, this notice serves as final notice. Failure to resolve your debt may result in the filing and execution of a judgment against you and/our business as allowed by The New York State Workers Compensation Law and the New York Civil Practice Law and Rules Enforceable by the New York State Workers Compensation Board. A judgment against you and/or your business is a matter of public record. Please take this opportunity to resolve your account voluntarily.

An employer’s failure to provide workers compensation coverage is punishable by fines and/or criminal prosecution. A Stop Work Order may be issued. The cost of workers compensation insurance coverage is very reasonable compared to the legal cost of defending and possibly losing a civil suit for the injury of an employee.

Please take this opportunity to resolve your account voluntarily. We encourage you to contact our office and allow us to inform you on the options available to resolve your debt in compliance with the New York State Workers Compensation laws and avoid unnecessary penalties in the future.

Know.Your.Rights.Dollar.Photo.Club.3.9.15.jpgIf you have received such a letter or have any questions about your workers compensation issues, feel free to contact us for a confidential consultation at (800) 893-9645.
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NYS Workers Comp Penalty Lawyer

Thumbnail image for Thumbnail image for Penalty.Picture.Dollar.Photo.Club.1.4.16.jpgOur Award Winning NY Workers Compensation Board Attorney has successfully represented businesses who have been issued a Stop Work Order. If you have received such an Order, it is imperative that you take immediate action because your business has been shut down. You must cease all operations even if you file an appeal – by its terms, the Order remains in effect during the pendency of the appeal. The Order is typically placed on the front door of your business by an investigator. It is critical for you to understand your obligations under the law and your compliance requirements. In general, businesses that are issued an Order also face a penalty with a monetary fine, which can be substantial. The Order and fine also can have devastating consequences in other parts of your business. For example, your liquor license may be affected and you could face disciplinary action before the State Liquor Authority. If you are a restaurant or otherwise in the hospitality industry, a suspension of revocation of your liquor license can lead to lost revenue.

Call our office to speak with an experienced NY Employment Law attorney who can help you navigate the administrative process and get you operating again. Read some of our testimonials here. A sample Stop Work Order, in part, is listed below:
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Fight Your NY Workers Compensation Fine or Judgment

Thumbnail image for Penalty.Picture.Dollar.Photo.Club.1.4.16.jpgIn recent years, the New York State Workers Compensation Board has increased enforcement steps to ensure the businesses that operate in the state are in compliance with the law. At times, the Workers Comp Board works in conjunction with other state agencies as part of a joint taskforce. One of the specific areas that the increased enforcement is the Board’s investigation and review of uninsured employers. That is, employers who fail to carry workers compensation insurance as required by Section 52 of the law. Uninsured employers can face substantial monetary fines and potentially criminal exposure. If you get a notice from the Board, we urge you to take the notice seriously and immediately contact an experienced employment attorney, who is familiar not only with the Workers Compensation law but the related employment laws as well because a finding before the Board can have impact in other areas. If you ignore or do not appropriately respond to the notice, you could face substantial penalties, other sanctions and potentially you could face other government investigations. Our Award Winning New York Workers’ Compensation Lawyer has successfully represented business owners and household employers throughout the state (and out of state employers with a presence in the state whether it be due to one employee who works from his or her own home) in this process and saved them in total millions of dollars. Read some of our testimonials here. Call our office now for a confidential consultation and learn if we can help you. Below are some first steps an employer should consider.

Initial Steps to Consider

Step One: Contact an experienced employment lawyer to learn about the process, your potential exposure and your responsibilities under the law. A non-lawyer or a lawyer who practices in a different area may not be familiar with the intricacies of the law and the impact you could face. On multiple occasions, we have been contacted by individuals who started the process on their own or with the assistance of a non-lawyer and were surprised, unprepared for certain steps or unhappy with the results. Be prepared with the assistance of an attorney who can help you navigate the whole path not just the immediate step. For example, different agencies and courts use different tests regarding the use of independent contractors. Finally, it is worth noting that timing is critical. There are important deadlines. You should take immediate action.

Step Two: Start Locating Your Documents — Your tax and payroll records can be your friend and provide a valuable defense. They are many reasons an employer may have been uninsured and penalized. A business could have a defense where insurance was not required and, as such, was arguably exempt from coverage requirements.
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Thumbnail image for Nanny.From.IStock.Photo.jpgHousehold employers of a nanny or home health aide are generally not familiar with New York State Labor Laws but, in the State’s eyes, they are responsible for compliance. Every employer – household and otherwise – must be aware of their responsibilities and obligations so it can protect itself from a government notice or employee complaint. Our Award Winning Lead Employment Lawyer has counseled many household employers regarding the hiring, working relationship and termination of employment for a nanny or home health aide and saved them money and time. Contact our office for a confidential consultation at (800) 893-9645 to learn your rights, options and how to defend yourself in a claim. Common claims concern government penalties and audits, payroll tax bills, and misclassification of workers as independent contractors and improper payment off the books. This blog post is the limited to certain issues under the New York State Domestic Workers Bill of Rights (“Bill of Rights”) and is a part of a series. You should speak with an experienced employment law attorney for advice regarding your specific situation.

In general, the Bill of Rights protects individuals who work in another person’s home (i) caring for children or another person or (ii) performing domestic responsibilities (cleaning, cooking, gardening, or repairs). The Bill of Rights does not apply to workers who do ocassional baby sitting or yard work. The Bill of Rights does not apply to individuals who work for an agency but other state labor laws may apply to those workers.

General Employer Obligations Under the Bill of Rights
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top.lawyers.arrive.mag.2011.jpgA: 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.

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above-the-bar-logo-no12.jpgOn 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.

Thumbnail image for top.lawyers.arrive.mag.2011.jpgClient 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 →

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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.

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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.

top.lawyers.arrive.mag.2011.jpgOur 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.

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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.

Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for top.lawyers.arrive.mag.2011.jpgOur 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.

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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.

Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for top.lawyers.arrive.mag.2011.jpgThis 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.
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