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New York State Workers Compensation Penalty – First Steps and Preparing a Legal Defense

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.

Know.Your.Rights.Dollar.Photo.Club.3.9.15.jpgStep Three: Get In Compliance or Ensure You Are Already in Compliance. Once you are in compliance, your penalty amount will stop to continue increasing.

Below is language from a sample notice. Your notice may vary. Each case is fact specific and the circumstances of your case require analysis of your potential defenses. We have helped our clients save money and time and may be able to help you. Call us at (800) 893-9645.


Based on the information available to the New York State Workers’ Compensation Board, the Board has determined that the employer was required to provide workers compensation insurance coverage for its employees since 9/30/13. Therefore, the Board has determined that the employer is in violation of Workers’ Compensation Law Section 52(5) for the period of 9/30/13 to present. A penalty has been assessed for each 10 day period of non-compliance.

As of the date of this notice, the penalty against the employer (and, if incorporated, its President, Secretary and Treasurer) totals $75,000.00.

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 attorney in your state or jurisdiction. From time to time, a blog post may discuss a legal case – please note that the post may not contain the most to update information on the case as developments may have occurred after it was created.

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