NY Work Comp L § 213 (2021)
2021 New York Laws WKC - Workers' Compensation Article 9 - Disability Benefits 213 - Non-Compliance or Default.

§  213. Non-compliance or default. 1. Whenever a covered employer does   not comply with this article by providing for the payment of  disability   and  family leave benefits to his or her employees in one or more of the   ways provided in section two hundred eleven of this article or  whenever   a  carrier  fails  to  pay  the  benefits  required  by  this article to   employees of a covered employer, then such employer shall be  fully  and   directly  liable  to  each  of  his  or her employees for the payment of   benefits provided by this article. The amount of the benefits  to  which   employees  of  such  employers  are  entitled  under  this  article  and   attendance fees of any attending physicians or attending podiatrists  or   health  care  provider  fixed pursuant to subdivision two of section two   hundred thirty-two of this article shall, on order of the chair, be paid   out of the fund established under section two hundred fourteen  of  this   article.  In case of non-compliance of the employer, such employer shall   forthwith pay to the chair, for credit to the fund, the sum so  expended   or  one  percent  of  his  or  her  payroll  for his or her employees in   employment during the period of non-compliance,  whichever  is  greater;   provided,  however,  that  if it shall appear to the satisfaction of the   chair that the default in payment of benefits or the  non-compliance  of   the employer otherwise with his or her obligation under this article was   inadvertent,  the  chair  may  fix  the  sum  payable  in  such case for   non-compliance or default at the amount paid out of the fund and  a  sum   less than one percent of such payroll, and in addition the penalties for   non-compliance  imposed  under  this  article. In case of failure of the   carrier to pay benefits, the employer shall forthwith pay to the  chair,   for credit to the fund, the sum so expended.2.  Where  a  carrier  authorized  by  the superintendent of financial   services to do business in this state has  failed  to  pay  benefits  on   behalf  of  an employer pursuant to this article solely because an order   of rehabilitation, conservation or liquidation  has  been  issued  by  a   court   of  competent  jurisdiction  of  this  or  any  other  state  or   jurisdiction, the provisions of subdivision one of  this  section  shall   not  apply as they relate to: (a) the payment of benefits to an employee   if the policy of the employer's carrier is  subject  to  the  protection   afforded  by any guaranty fund pursuant to the insurance law; or (b) the   reimbursement to the fund, created under section two hundred fourteen of   this article, by an employer whose carrier has failed to pay benefits.3. The provisions of section one hundred forty-one-b of  this  chapter   shall  not  apply to violations of this section after January first, two   thousand  eighteen  and  before  January  first,  two  thousand  twenty.   Thereafter,  in the event an employer is subject to debarment solely due   to a penalty for violation of  this  section,  the  chair  may,  in  the   interests of justice, restore the employer's eligibility to submit a bid   on  or be awarded any public work contract or subcontract. The chair may   exercise this  authority  only  if  it  is  the  employer's  first  time   violation  of  section  one  hundred  forty-one-b  of  this chapter; the   employer is  not  liable  for  any  outstanding  workers'  compensation,   disability  or  family leave claims as a result of the lack of coverage;   and  the  employer  has  paid  all  fines,  assessments,  and  penalties   associated with the lack of coverage.