Prohibits insurance carriers and employers from withholding certain benefits from injured workers based on a claim that such workers have voluntarily withdrawn from the labor market by not seeking alternate employment that their injury or illness does not preclude them from performing.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A8482A
SPONSOR: Cruz TITLE OF BILL:
An act to amend the workers' compensation law, in relation to prohibit-
ing insurance carriers and employers from withholding certain benefits
from injured workers based on attachment to the labor market
PURPOSE OR GENERAL IDEA OF BILL:
To prohibit insurance carriers and employers from withholding certain
benefits from injured workers based on attachment to the labor market.
SUMMARY OF PROVISIONS:
Section 1 amends paragraph w of subdivision 3 of section 15 of the work-
ers' compensation law by removing the need for a claimant who is enti-
tled to benefits to demonstrate ongoing attachment to the labor market.
Section 2 adds a new subdivision 10 to section 15 of the workers'
compensation law that establishes no benefits due under this section
shall be withheld, diminished, or conditioned based on attachment to the
labor market.
Section 3 sets the effective date.
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE):
The A print amendment moved language from subdivision 3 to new subdivi-
sion 10 to ensure it applies to all benefits due to claimants under
section 15.
JUSTIFICATION:
Currently, insurance carriers and employers can legally withhold indem-
nity, or wage replacement, benefits from injured workers who prove that
they cannot perform their jobs due to their workplace illness or injury.
Carriers can do this by claiming that the injured worker has voluntarily
withdrawn from the labor market by not seeking alternate employment that
their injury or illness does not preclude them from performing. For the
vast majority of injured workers, this is an impossibility. If their own
employer is not willing or able to offer them light duty work, the
chances that a different employer will offer them light duty work in an
industry or position that they most likely have little experience or
training in are nearly nil.
This defense evolved as a matter of decisional law. Statutory amendments
enacted in 2017 to limit the application of this defense have not been
successful. Further, allowing carriers to assert this defense creates a
windfall for the carriers because employers' experience rating and
premiums are routinely negatively impacted by the claim regardless of
whether indemnity benefits are withheld. For these reasons, it is neces-
sary to eliminate this defense altogether.
PRIOR LEGISLATIVE HISTORY:
This is a new bill.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None.
EFFECTIVE DATE:
Immediately.
