NY Work Comp L § 25 (2021)
2021 New York Laws WKC - Workers' Compensation Article 2 - Compensation 25 - Compensation, How Payable.

§  25.  Compensation,  how payable. 1. When no controversy; penalties: failure to notify of cessation of payment; late payment of  installment. (a)  The compensation herein provided for shall be paid periodically and promptly in like manner as wages, and as it accrues, and directly to the person entitled thereto without waiting  for  an  award  by  the  board, including  those  cases  previously  established and closed by the board upon receipt of an application to reopen  such  case,  except  in  those cases  in  which  the  right  to  compensation  is  controverted  by the employer.  (b) The  first  payment  of  compensation  shall  become  due  on  the fourteenth  day  of  disability  on  which  date  or  within  four  days thereafter all compensation then due shall be paid, and the compensation payable bi-weekly thereafter; but  the  board  may  determine  that  any payments  may  be  made  monthly  or at any other period, as it may deem advisable. An  award  of  compensation  payable  for  permanent  partial disability under paragraphs a through t, inclusive, of subdivision three of  section  fifteen  of this article, shall be payable in one lump sum, without commutation to present value upon the  request  of  the  injured employee.  (c)  If  the  employer  or  insurance  carrier does not controvert the injured worker's  right  to  compensation  such  employer  or  insurance carrier  shall, either on or before the eighteenth day after disability, or within ten days after the employer first has knowledge of the alleged accident, whichever period is the greater, begin paying compensation and shall immediately notify the chair in  accordance  with  a  form  to  be prescribed   by  him,  that  the  payment  of  compensation  has  begun, accompanied by the further statement  that  the  employer  or  insurance carrier,  as  the case may be, will notify the chair when the payment of compensation has been stopped.  (d) Whenever for any reason compensation payments cease, the  employer or  its  insurance carrier shall within sixteen days thereafter, send to the chair a notice on a form prescribed by the chair that  such  payment has  been  stopped,  which  notice shall contain the name of the injured employee or his or her principle dependent, the date  of  accident,  the date  to  which  compensation  has  been  paid  and  the whole amount of compensation paid. In case the employer or its insurance  carrier  fails so  to notify the chair of the cessation of payments within sixteen days after the date on which compensation has been paid, the board may impose a penalty upon such employer or its insurance carrier in the  amount  of three hundred dollars, which shall be paid to the claimant. Such penalty shall be collected in like manner as an award of compensation.  (e)  If  the  employer  or  insurance  carrier  shall  fail to pay any installments of compensation within  twenty-five  days  after  the  same become  due,  there  shall  be  paid by the employer or, if insured, its insurance carrier,  an  additional  amount  of  twenty  percent  of  the compensation  then due which shall accrue for the benefit of the injured worker or his or her dependents and shall be paid to him or her or  them with  the  compensation,  unless such delay or default is excused by the board upon the application of the employer or insurance carrier upon the ground that owing to conditions over which  the  employer  or  insurance carrier  had no control, such payment could not be made. The employer in each such instance shall also be  assessed  the  sum  of  three  hundred dollars, which shall be paid to the claimant.  (f)  Whenever  compensation  is  withheld solely because a controversy exists on the question  of  liability  as  between  insurance  carriers, surety  companies,  the  special  disability  fund, the special fund for reopened cases, or an employer, the board may direct that  any  carrier, surety  company,  the  special  disability  fund,  the  special fund for  reopened cases shall immediately pay compensation and bills for  medical care  to  the  extent  payable  in  accordance with sections thirteen-g, thirteen-k,  thirteen-l  and  thirteen-m  of   this   chapter,   pending determination  of  such issue. Any such payment or payments shall not be deemed an admission against interest by  the  carrier,  surety  company, special  disability  fund  or the special fund for reopened cases. After final determination, the parties shall make  the  necessary  and  proper reimbursement  including  the  payment  of  simple  interest at the rate established by section five thousand four of the civil practice law  and rules in conformity with such determination.   2.  Procedure  when compensation controverted; penalties: late filing; controversy without just cause. (a) In  case  the  employer  decides  to controvert  the right to compensation, it shall, either on or before the eighteenth day  after  disability  or  within  ten  days  after  it  has knowledge of the alleged accident, whichever period is the greater, file a  notice  with  the  chair,  on  a  form  prescribed by the chair, that compensation is not being paid, giving the name of the claimant, name of the  employer,  date  of  the  alleged  accident  and  the  reason   why compensation  is  not being paid. When a claim for compensation is filed with medical evidence  of  work  related  injury  or  illness,  and  the claimant  is  disabled  and  not  working, and the claimant is otherwise entitled to compensation, and the employer is not making payment to  the claimant  as  required herein, and the employer has not controverted the claim, and the efforts to resolve the issue with the  carrier  have  not been  successful,  the claimant may request, in the format prescribed by the chair, a hearing to be held within forty-five days  of  the  board's receipt of such request.   If  the  insurance  carrier  shall  fail  either  to  file  notice  of controversy or begin  payment  of  compensation  within  the  prescribed period or within ten days after receipt of a copy of the notice required in  section  one  hundred  ten  of this chapter, whichever period is the greater, the board may impose a penalty in the amount of  three  hundred dollars,  which shall be in addition to all other penalties provided for in this chapter and shall be paid to the claimant. Such penalty shall be collected in like manner as an award of compensation.  (b) In the event the board shall notify an employer or  his  insurance carrier  that a workers' compensation case has been indexed against such employer, and the employer or insurance carrier  decides  to  controvert the  right  to compensation, a notice of controversy shall be filed with the chair within twenty-five days from the date of mailing of  a  notice that  the  case  has  been  indexed.  Failure  to  file  the  notice  of controversy within the prescribed twenty-five day time limit  shall  bar the  employer  and  its insurance carrier from pleading that the injured person was not at the time of the accident an employee of the  employer, or  that  the employee did not sustain an accidental injury, or that the injury did not arise out  of  and  in  the  course  of  the  employment. However,  the board, in the interest of justice, shall, upon the showing of good cause therefor, permit the filing or the amendment of  a  notice of  controversy  to  raise  an  issue  not theretofore raised because of mistake, inadvertence, omission, irregularity, defect  or  surprise,  or based upon newly discovered evidence.  (c)  If the board shall upon a hearing determine that objections to an award  of  compensation  by  the  employer  or  insurance  carrier  were interposed  without  just  cause,  it  shall  state the grounds for such determination and shall require the employer or the insurance carrier to pay to the claimant, in addition to the amount presently due  under  the award, the sum of three hundred dollars.    2-a.  Pre-hearing  conference.  (a)  In  any  controverted  case, upon receipt of the  notice  of  controversy,  the  board  shall  schedule  a pre-hearing  conference  before  a  referee  or  conciliator  as soon as practicable but not to exceed forty-five days after receipt of notice of controversy  and a medical report referencing an injury. The board shall give notice of the pre-hearing conference to all parties.  A  party  may appear  at  such  conference  pro  se,  or  by  an  attorney or licensed representative or other representative authorized by the board to appear on behalf of such party.  (b) The purpose of the conference shall be to consider the following:  (i)  confirmation  that  all  appropriate  forms,  including   medical reports,  have been submitted and a verification that all information on the forms is accurate;  (ii) addition of any other necessary parties, where appropriate;  (iii) simplification and limitation of factual and legal issues, where appropriate;  (iv) presentation of a list of proposed witnesses, where appropriate;  (v) scheduling the case for a hearing; and  (vi) entering into a stipulation.  (c) The referee or conciliator may continue the conference  and  order the  production  of any necessary reports, including, where appropriate, an examination by a carrier's  consultant.  At  the  conclusion  of  the conference,  the  referee  or conciliator may issue a written order. The referee or conciliator may, upon  agreement  of  all  parties,  issue  a decision  which  shall  constitute  a  decision  of  the  board  for all purposes. If a claimant shall be unrepresented, a decision issued  by  a referee  upon agreement of all parties at a pre-hearing conference shall not become final until it shall have reviewed and approved by the  chair or  a  referee  of the board designated by the chair. Such review by the chair or an employee of the board so designated  shall  occur  no  later than  fourteen days from the date the proposed decision is submitted for review and approval. The unrepresented claimant shall have ten days from receipt of notice of such approval to withdraw from  the  agreement.  If not withdrawn, such agreement shall constitute an award of the board for all purposes. Upon receipt of written notification of such withdrawal by the unrepresented claimant, the board shall rescind the decision made by the  referee  and  restore  the  case  to  the  regular hearing calendar process. Such decision shall constitute a decision of the board for  the purposes of section twenty-three of this article.  (d)  In  cases  where  the claimant is represented by an attorney or a licensed representative, ten days  before  the  conference,  each  party shall file a conference statement noting the specific issues in dispute, including the information required in paragraph (b) of this subdivision. Discovery shall close at the end of the pre-hearing conference. Evidence not  disclosed or obtained thereafter shall not be admissible unless the proponent of the evidence can demonstrate that it was not  available  or could not have been discovered by the exercise of due diligence prior to the  conference.  If a claimant is unrepresented, the carrier shall file such a statement.  (e)  Proceedings  in  the  pre-hearing  part  shall  be  conducted  in accordance with the rules promulgated by the chair or the board.   2-b.  Conciliation.  (a) 1. There is hereby created within the board a conciliation process. The conciliation process will permit claims to  be handled on a more expeditious and informal basis and provide a mechanism for claims to be addressed without undue controversy.   2.  Conciliation may also address requests by hospitals, physicians or other health care providers for payment of bills rendered by them in any case, regardless of the  expected  duration  of  benefits,  pursuant  to  sections  thirteen-g,  thirteen-k,  thirteen-l  and  thirteen-m  of this article, and regardless of the dollar amount of the bill.  (b)  Each  claim that is filed shall be reviewed for possible transfer for conciliation. Claims where the  expected  duration  of  benefits  is fifty-two  weeks  or  less  shall be transferred for conciliation within thirty days of receipt of  a  carrier's  response  to  notice  of  index required  under this section, except uncontested claims where there have been only temporary or minor injuries and where board appearance by  the claimant  is  unnecessary.  Such  minor  and uncontested claims shall be handled through a  motion  calendar  as  prescribed  by  the  rules  and regulations promulgated pursuant to this section.  (c)  Upon  receipt  of  a  claim  for conciliation, a meeting shall be scheduled, if necessary, within thirty days with all  concerned  parties before a conciliation counsel.  (d)  All  information relative to the claim shall be made available to all parties no later than five days before the meeting. This information shall include, but not be limited to medical records, wage  information, date  of  accident  or injury and the amount of time lost from work as a result of such accident or injury.  (e) At such meeting the conciliation counsel shall promptly and  prior to  any  other  proceeding  authorized  under  this  section  inform any claimant participating in the meeting without benefit of  a  counsel  or licensed  representative  of their right to have representation present, their right to a reasonable adjournment to  procure  representation,  of their right to withdraw from any agreement at such meeting in accordance with  subdivision  (g)  of  this  section  and  such  other  and further information as the chair may require  to  insure  that  an  uncounselled claimant  fully  understands  the  conciliation process. After informing claimant in accordance with this subdivision, conciliation counsel shall request a written consent to participate  in  the  conciliation  process from  claimant,  and  if  such  claimant  declines  to  continue,  shall immediately cease the conciliation process and cause  the  claim  to  be restored to the regular hearing calendar process.  (f)  After  reviewing  all  relevant information, conciliation counsel shall prepare a proposed decision which shall be sent  to  all  parties. Any  party  may  object  to  the proposed decision and request a hearing within thirty days of the  receipt  of  the  proposed  decision.  If  no objection  is  made  during such thirty day period the proposed decision shall constitute a final award of the board for all purposes except that it shall not be reviewable under sections twenty-two and twenty-three of this article. If any party objects to the proposed  decision,  the  case shall be transferred to the regular hearing calendar process.  (g) If a claimant shall be unrepresented, the case shall not be agreed to  until  it  shall  have  been reviewed and approved by the chair or a referee of the board designated by the chair.  Such  decision  shall  be rendered  within  fifteen  days  of  receipt  of  the agreement from the conciliation bureau; provided, however, that a claimant shall  have  ten days  from  receipt  of  notice  of  such  approval to withdraw from the agreement. If approved, such agreement shall constitute an award of  the board  for  all  purposes  except  that it shall not be reviewable under sections  twenty-two  and  twenty-three  of  this  article.  Should  the agreement  be  disapproved  or  should  the  claimant  withdraw from the agreement as provided herein, the  case  shall  be  transferred  to  the regular hearing calendar process.  (h)  After  the  proposed decision has become final, the carrier shall make payments of any award as required in the decision within ten  days. If,  however,  the carrier does not make the payments as required in the decision within ten days of the date  in  which  the  proposed  decision  becomes  final, the chair shall impose of a fine of five hundred dollars for failure to live up to the terms of the  decision  upon  verification that  payment  has  not  been timely made. Of that amount, three hundred dollars  shall  be  made payable to the claimant and two hundred dollars shall be payable to the board for the operation  and  administration  of this chapter.  (i)  If,  in  any  case  which has been addressed by conciliation, the claimant requires additional medical  care  beyond  that  agreed  to  or requires  benefit  payments  beyond  that  agreed  to,  the  meeting, if necessary, shall be reconvened within thirty days from  the  receipt  of information  demonstrating  the  need  for  additional  medical  care or benefit payments. If it is determined that the claimant's condition  may continue  for  a period of time which is more than six months, such case shall be reopened and transferred to the regular hearing  calendar.  If, however,   it  is  determined,  based  on  medical  evidence,  that  the claimant's condition will improve in less  than  six  months,  the  case shall remain in conciliation.   2-c.  Collective  bargaining;  alternative dispute resolution. (a) For the purposes  of  employments  classified  under  sections  two  hundred twenty, two hundred forty and two hundred forty-one of the labor law, an employer   and   a   recognized   or   certified   exclusive  bargaining representative of its employees  may  include  within  their  collective bargaining  agreement  provisions  to  establish  an alternative dispute resolution system to resolve claims arising under this chapter.   Any collective bargaining agreement or agreement entered into  by  the employee and an employer which purports to preempt any provision of this chapter or in any way diminishes or changes rights and benefits provided under  this chapter, except as expressly provided herein, shall be null, void and unenforceable.  (b) Except as specifically provided in this  subdivision,  nothing  in this  section  or  any  collective bargaining agreement providing for an alternative dispute resolution  system  for  the  resolution  of  claims arising  under  this chapter shall preempt any provision of this chapter or in any way diminish or change any benefits to which an  employee,  or his  or  her  dependents,  or  survivors may be entitled pursuant to the provisions of this chapter.  (c) The collective bargaining agreement may  establish  the  following obligations and procedures:  (i)  an  alternative  dispute  resolution  process  to  resolve claims arising under this chapter, which may include  but  is  not  limited  to mediation or arbitration;  (ii)  the  use  of  an  agreed managed care organization as defined in section one hundred twenty-six of this chapter or a list  of  authorized providers  for  medical  treatment, which may be the exclusive source of all medical and related treatment provided under this chapter;  (iii) the use of an  agreed  list  of  authorized  providers  for  the purpose  of  providing  medical opinions and testimony, which may be the exclusive source of all such medical opinions and testimony  under  this chapter;  (iv) benefits for injured workers, their dependents or their survivors supplemental to those provided under this chapter;  (v) a light duty, modified job, or return to work program;  (vi) a vocational rehabilitation or retraining program; and  (vii) worker injury and illness prevention programs and procedures.  (d)  The  determination  of  an  arbitrator or mediator pursuant to an alternative dispute resolution procedure pertaining to the resolution of claims arising under  this  chapter  shall  not  be  reviewable  by  the workers'  compensation board, and the venue for any appeal shall be to a  court of competent jurisdiction in accordance with section  twenty-three of this chapter.  (e)  (i) Determinations rendered as a result of an alternative dispute resolution procedure shall remain in force during a period in which  the employer   and   a   recognized   or   certified   exclusive  bargaining representative are renegotiating a collective bargaining agreement.  (ii) Upon the expiration of a collective  bargaining  agreement  which contains a provision for an alternative dispute resolution procedure for workers'  compensation  claims,  the  resolution  of  claims relating to injuries  sustained  as  a  result  of  a   work-related   accident   or occupational  disease  may,  if  the  collective bargaining agreement so provides, be subject to the  terms  and  conditions  set  forth  in  the expired  collective  bargaining  agreement  until  the  employer  and  a recognized or certified exclusive bargaining representative negotiate  a new collective bargaining agreement.  (iii)  Upon the termination of a collective bargaining agreement which is not subject to renegotiation, the employer and  its  employees  shall become  fully  subject  to  the  provisions  of this chapter to the same extent as they were  prior  to  the  implementation  of  the  collective bargaining  agreement  provided,  however,  that  when  a claim has been adjudicated under the  alternative  dispute  resolution  procedure,  the claimant  or  employer  to  such  claim or matter shall be estopped from raising identical issues before the board.  (f)  Commencing  January  first,  nineteen  hundred  ninety-six,   and annually thereafter, a copy of the collective bargaining agreement shall be  filed  with  the  chair.  The  employer  shall  report the number of employees subject to the collective bargaining agreement. The  chair  or the  chair's  designee shall review the collective bargaining agreements for compliance with the provisions of this  section,  shall  notify  the parties  to  the  agreement  if  the agreement is not in compliance, and shall  recommend  appropriate  action  to  bring  the   agreement   into compliance.   3.  Hearings;  procedure;  penalty  for  late payment of award and for dilatory tactics or unjustified lack of preparedness  of  a  carrier  or employer.  (a)  The  chairman may in the interest of justice at any time refer a case in which payments are being made as above to the board  for a hearing, and shall immediately upon receipt of notice from the injured worker,  from  the  employer,  or  from  the  insurance carrier that the employee's right to compensation is controverted, or  that  payments  of compensation  have  stopped or been suspended, make such investigations, or cause such medical examinations to be made, or  refer  the  case  for such  hearings,  as  will  properly  protect the rights of both parties, either as to any compensation then due or as to  any  compensation  that may  become due in the future for temporary or permanent disability, and shall promptly cause the resumption of  payments  in  case  the  injured person is entitled thereto.  (b)  Nothing herein shall limit the right of the board in a particular case to hold a hearing and  make  an  award  in  accordance  with  other provisions  of  this  chapter. No case shall be closed without notice to all parties interested  and  without  giving  to  all  such  parties  an opportunity to be heard.  (c)  The  board  shall  keep  an accurate record of all hearings held. Whenever a hearing must be continued or adjourned because the carrier or employer has engaged in dilatory tactics or exhibited  unjustified  lack of preparedness, the board shall impose a penalty of twenty-five dollars to be paid to the fund created by subdivision two of section one hundred fifty-one  of  this  chapter  and  shall  in  addition  make an award of seventy-five dollars payable  to  the  injured  worker  or  his  or  her  dependants.  Dilatory  tactics  may include but shall not be limited to: failing to subpoena medical witnesses or to  secure  an  order  to  show cause as directed by the referee, failing to bring proper files, failing to  appear,  failing  to  produce witnesses or documents after they have been requested by the referee or examiner or as directed by the  hearing notice,   unnecessarily  protracting  the  production  of  evidence,  or engaging in a pattern of delay which unduly  delays  resolution,  except that  no  penalty shall be imposed nor award made under this subdivision if the carrier or employer produces evidence sufficient  to  excuse  its conduct to the satisfaction of the referee.  (d) If, in any case, the issues have not been resolved within one year after  such  issues  have  been  raised before the board, or if multiple claims arise from the same accident or occurrence,  or  if  all  parties agree  to  an expedited hearing, or if a notice of controversy is filed, or if the chair otherwise deems it necessary, the chair may  order  that the  case  be  transferred  to  a  special  part for expedited hearings. Proceedings in such part shall be conducted in an expedited manner.   Cases in such special part shall be scheduled  in  such  a  manner  so that, where appropriate, any and all outstanding issues may be addressed at  one  hearing.  An  adjourned  case  shall  be rescheduled as soon as practicable, but no later than thirty days following such adjournment.   If a request for an adjournment is made by a carrier or employer which is not an emergency and is deemed  to  be  frivolous  by  the  chair,  a penalty  of  one thousand dollars shall be imposed by the chair. If such employer  or  carrier  is  represented  by  an  attorney   or   licensed representative  who  is  not an employee of the carrier or employer, the attorney or licensed representative shall be responsible for the payment of such penalty. If a request for an adjournment is made by  a  claimant who  is represented by an attorney or a licensed representative which is not an emergency and is deemed to be frivolous by the chair,  a  penalty of five hundred dollars shall be imposed by the chair on the attorney or licensed  representative.  Such penalty shall be paid by the attorney or licensed representative and shall not come out of the claimant's  award. No penalty shall be imposed on an unrepresented claimant who requests an adjournment.  (e) If the employer or its insurance carrier fails to file a notice or report requested or required by the board or chair or otherwise required within the specified time period or within ten days if no time period is specified, the board may impose a penalty in the amount of fifty dollars unless  the  employer  or carrier produces evidence sufficient to excuse its conduct to the satisfaction of the board. Such penalty shall  be  in addition  to  all other penalties provided for in this chapter and shall be paid into the state treasury.  (f) If the employer or  its  insurance  carrier  shall  fail  to  make payments  of compensation according to the terms of the award within ten days or the uninsured employers' fund shall fail  to  make  payments  of compensation  according  to  the  terms  of the award within thirty days after such ten day period except in case of an application to the  board for  a  modification, rescission or review of such award, there shall be imposed a penalty equal to twenty percent  of  the  unpaid  compensation which  shall be paid to the injured worker or his or her dependents, and there shall also be imposed an assessment of fifty dollars, which  shall be paid into the state treasury.  (g) Notwithstanding any other provision in this chapter, the chair may by  regulation  elect to establish a performance standard concerning the subject  of  any  penalty  or  assessment  provision  applicable  to  an insurance  carrier  or  self-insured  employer,  where  such  penalty or assessment is remittable to the New York state treasury, or  chair,  but  not to claimants or any other payee or fund, and impose a single penalty or  assessment  upon the failure to meet that promulgated standard, with notice  to  the  carrier  or  self-insured  employer.  The  penalty   or assessment  imposed in the aggregate shall be payable to the chair. Such aggregate penalty or assessment  shall  be  based  upon  the  number  of violations  as  multiplied against the applicable penalty or assessment, but may be negotiated by the chair's designee in  full  satisfaction  of the  penalty  or  assessment.  A  final  agreement  between  the chair's designee and the carrier or self-insured employer may be  submitted  and approved  subject  to section thirty-two of this article, without notice to any claimant. Any aggregate penalty or assessment issued herein shall be issued administratively,  and  the  board,  and  the  chair  may,  by regulation,  specify  the  method  of review or redetermination, and the presentment of evidence and  objections  shall  occur  solely  upon  the documentation. The carrier or self-insured employer shall receive credit for  any  instances  in  which  the  aggregate  penalty or assessment is inclusive of a penalty or assessment previously issued and  paid  in  an individual  claim  or  proceeding.  A  final determination is subject to review under section twenty-three of this article, except that  no  stay in  payment of the penalty or assessment shall apply pending the outcome of the application for administrative review. Failure to pay the finally determined penalty or assessment, or the penalty  or  assessment  agreed upon  pursuant to section thirty-two of this article, within ten days of filing, shall result in the  imposition  of  a  twenty-percent  penalty, payable  to  the  chair.  In  the  event  of the carrier or self-insured employer instituting or continuing an issue without reasonable  grounds, the provisions of subdivision three of section one hundred fourteen-a of this  chapter  shall  be  applicable. Aggregate penalties shall be borne exclusively by insurance carriers and licensed representatives  pursuant to  subdivision  three-b  of section fifty of this article and the costs shall not be passed to insured employers.   4. Advance payments of compensation; employer reimbursements; receipts for  payment.  (a)  If  the  employer  has  made  advance  payments   of compensation,  or  has  made  payments  to an employee in like manner as wages during any period of  disability,  he  shall  be  entitled  to  be reimbursed  out  of  an unpaid instalment or instalments of compensation due, provided his claim for  reimbursement  is  filed  before  award  of compensation  is  made,  or  if insured, by the insurance carrier at the direction of the board, unless he shall file a waiver  of  reimbursement with  the  chairman,  in  which  event compensation shall be paid to the claimant notwithstanding the advanced payments.  (b) An injured employee,  or  in  case  of  death  his  dependents  or personal representative, shall give receipts for payment of compensation to the employer paying the same and such employer shall produce the same for inspection by the chairman, whenever required.  (c) If the employer or comptroller of the state or city of New York or trustees  duly  constituted  under any welfare, pension or benefit plan, agreement or trust to which the injured employee is a party or of  which he  or  she  is  a beneficiary, and which plan, agreement or trust shall provide that the injured employee shall not be entitled to or  shall  be limited  in  the  amount of benefits or payments thereunder if he or she shall be entitled to benefits under this chapter, shall have advanced or paid benefits or payments thereunder to the injured employee during  any period  in which his or her right to benefits under this chapter was not determined, then and in such event such employer or comptroller  of  the state or city of New York or trustees shall be entitled to be reimbursed out  of  the  unpaid  instalment  or  instalments  of  compensation due, provided claim therefor is filed together with proof  of  the  terms  of  said plan, agreement or trust and of the fact and amount of payment with the  board  before  award  of  compensation  is  made. The New York city employees' retirement system shall provide to the  board  on  a  monthly basis  a  listing in an electronic format including the names and social security numbers of injured employees to whom benefit payments were paid or advanced by such system and whose benefit  payments  are  limited  by workers'  compensation  benefits  awarded  under this chapter. The board shall  verify  which  injured  employees  have  been  awarded   workers' compensation  benefits  and  return  the  listing  to  the New York city employees'  retirement  system  including,  but  not  limited  to,   the following  information  relating to the award for each injured employee: date of accident, board  case  number,  carrier  identification  number, carrier  case  number, beginning and ending dates of disability, payment interval, and payment amount. The board shall return the listing to  the New  York  city employees' retirement system no later than fourteen days after its receipt.   4-a. Public employee welfare fund; wage replacement payment; lien.  a. For the purposes of this subdivision, the following terms shall have the following meanings:  (i) "Public employer" shall mean the state, a municipal corporation, a local  government  agency  or  other  political  subdivision,  a  public authority,  a  public  benefit  corporation,  or  any  other   political subdivision of the state.  (ii) "Public employee" shall mean all employees of a public employer.  (iii)  "Public  employee  welfare  fund"  shall mean any trust fund or other fund established or maintained unilaterally or jointly by  one  or more  labor  organizations which represent the relevant public employees and/or  one  or  more  public  employers  whether  directly  or  through trustees,  to  provide employee welfare benefits for public employees or their families or dependents, or for both, including,  but  not  limited to,  medical, surgical or hospital care or benefits, and benefits in the event of sickness, accident, disability, or death.   b. Where a public  employee  who  is  ineligible  for  benefits  under section two hundred three or two hundred seven of this chapter by reason of  his  public  employer's  failure to voluntarily elect coverage under section two hundred twelve of this chapter, is disabled and has  claimed or subsequently claims and is entitled to workers' compensation benefits under  this  article,  and  that  public employee is covered by a public employee welfare fund which  voluntarily  provides  a  wage  replacement benefit in the event of disability, the following provision shall apply:   Where such an employee receives a wage replacement benefit from such a public  employee  welfare  fund in respect of the disability which forms the basis of  the  workers'  compensation  claim,  the  public  employee welfare  plan  making  such  payment may, at any time before an award of workers' compensation benefits is made, file with the board a claim  for reimbursement  out  of the proceeds of such award to the public employee for the period for which the wage replacement benefit was  paid  to  the public employee under the rules of the public employee welfare fund, and shall have a lien against the award for reimbursement, provided that the insurance  carrier  or  other  entity  liable  for  payment of the award receives,  before  such  award  is  made,  a  copy  of  the  claim   for reimbursement  from the public employee welfare fund which paid the wage replacement benefit, or provided that the  board's  decision  and  award directs such reimbursement.   5.  Deposits  for  security;  lump  sum payments in certain cases. (a) Whenever the chair may deem  it  advisable  any  employer  or  insurance carrier  may  be required to make a deposit with the chair to secure the prompt and convenient payment of such compensation, and the chair, shall  have power to make payments therefrom upon any awards. The  interest  on all  funds  on deposit with the chair pursuant to this paragraph, may be transferred to the uninsured employers' fund whenever  the  chair  shall determine  that  the net assets of the uninsured employers fund are less than two million dollars or the amount expended  by  that  fund  in  the prior year whichever is greater.  (b)  The  board, whenever it shall so deem advisable, may commute such periodical payments to one or more lump  sum  payments  to  the  injured employee, or, in case of death, his or her dependents, provided the same shall  be  in  the  interests of justice. Such commutation shall be made according to the method  prescribed  in  section  twenty-seven  of  this article.   6.  At  the  request  of  a  person  legally  responsible  for a minor claimant, the board may, after a hearing, direct that payment be made to the legally responsible person, to be  used  for  the  benefit  of  such claimant.    A  person who is so designated shall report to the chairman annually with respect to the use of  such  payments.  The  chairman  may require  that  a  report  be  made  more often than annually if there is reason to believe that the person receiving such payments is  using  the payments for purposes other than the benefit of the claimant. Should the chairman  or  the  board  find  that  the payee is using the payment for purposes other than the benefit of the claimant the board shall after  a hearing  revoke  the  payee's  designation  and appoint a new payee. The chairman shall take such action as is  necessary  to  recover  from  the payee any funds improperly used.   7.  Payments and awards to minors. All awards of compensation required to be made to minors under this chapter shall be  paid  to  or  for  the benefit  of  such  minors.  The  board may in its discretion require the appointment of a guardian, before making payments not otherwise directed to be paid by action of such board, where such award exceeds two hundred and fifty dollars. The board may,  when  such  course  seems  advisable, direct that funds, payable to or for the benefit of a minor, be paid for vocational  training or maintenance of such minor supplementing payments made under subdivision nine of section fifteen of this chapter.   8. Rules. The board may adopt rules to carry  out  the  provisions  of this  section,  including  provision  for  reports  to the chairman by a guardian of the use of moneys paid to minors and reports to the chairman by a designated payee of compensation to a  minor,  in  accordance  with this section.   9.  Direct  deposit. (a) Compensation payments shall be required, upon the written request from an injured worker or a  person  entitled  to  a death  benefit  provided  by this chapter, to be deposited directly in a bank for any purpose to an account in the name of such injured worker or person entitled to death benefits, and duly  filed  in  accordance  with such   regulations.   Each   person   eligible  to  receive  payment  of compensation or death benefits under this section shall be  notified  of the  option  to  receive such payment in the form of direct deposit from the carrier or self-insured employer, such notice to be  promulgated  by the  board.  Such  eligible  person  shall  also  be  provided the means necessary to enroll in direct deposit pursuant to this  paragraph  in  a manner  specified by regulations of the board at the same time as notice is given pursuant to this paragraph.  (b) The board is hereby authorized to promulgate reasonable rules  and regulations,  as  may  be necessary, to administer the direct deposit of compensation payments. Such regulations  shall  permit  the  deposit  of compensation  payments to be split between multiple accounts by either a dollar amount or exact percentage, provided, however,  such  regulations  may  establish  a minimum dollar amount and may limit the maximum number of partial deposits allowed.  (c)  As  used  in  this  subdivision,  the  term  "bank"  includes any financial institution which is  a  member  of  the  New  York  automated clearinghouse or any financial institution designated by the board.  (d) Notwithstanding any provision in this subdivision to the contrary, direct  deposit  of  any  compensation  payment  may not be made if such payment would be in violation of any federal or state law or regulation.