2023 New York Laws › WKC - Workers' Compensation › Article 9 - Disability Benefits › 220 - Penalties.

§  220.  Penalties.  1.  Any  employer who fails to make provision for
payment of disability or family leave benefits as  required  by  section
two hundred eleven of this article within ten days following the date on
which such employer becomes a covered employer as defined in section two
hundred  two  of  this article shall be guilty of a misdemeanor and upon
conviction be punishable by a fine of not less than one hundred nor more
than five hundred dollars or imprisonment for not more than one year  or
both,  except  that  where any person has previously been convicted of a
failure to make provisions for payment of  disability  or  family  leave
benefits  within  the preceding five years, upon conviction for a second
violation such person shall be fined not less than two hundred fifty nor
more than one thousand two hundred fifty  dollars  in  addition  to  any
other  penalties  including  fines  otherwise  provided by law, and upon
conviction for a third or subsequent violation such person may be  fined
up  to  two  thousand  five  hundred  dollars  in  addition to any other
penalties including fines otherwise provided by law. Where the  employer
is  a  corporation,  the  president,  secretary,  treasurer, or officers
exercising corresponding functions, shall  each  be  liable  under  this
section.
2.  The  chair  or  any officer of the board designated by him or her,
upon finding that an employer has  failed  to  make  provision  for  the
payment  of  disability or family leave benefits, shall impose upon such
employer a penalty not in excess of a sum equal to one-half of  one  per
centum of his or her weekly payroll for the period of such failure and a
further  sum  not in excess of five hundred dollars, which sums shall be
paid into the fund created under section two hundred  fourteen  of  this
article.
3.  If  for  the purpose of obtaining any benefit or payment under the
provisions of this article,  or  for  the  purpose  of  influencing  any
determination  regarding  any  benefit  payment,  either  for himself or
herself or any other person, any person, employee, employer  or  carrier
wilfully  makes a false statement or representation or fails to disclose
a material fact, he or she shall be guilty of a misdemeanor.
4. Whenever a carrier shall fail to make prompt payment of  disability
or  family  leave  benefits payable under this article and after hearing
before an officer designated by the chair  or  a  determination  by  the
chair's  designee,  pursuant  to  section two hundred twenty-one of this
article, for that purpose, the chair or designee  shall  determine  that
failure to make such prompt payment was without just cause, the chair or
designee,  pursuant  to  section two hundred twenty-one of this article,
shall collect from the carrier a sum not in excess  of  twenty-five  per
centum  of  the amount of the benefits as to which the carrier failed to
make payment, which sum shall  be  credited  to  the  special  fund  for
disability  benefits.  In  addition,  the chair or designee, pursuant to
section two hundred twenty-one of this article, may collect and pay over
to the employee the sum of ten dollars  in  respect  to  each  week,  or
fraction thereof, for which benefits have not been promptly paid.
5.  In  addition  to  other  penalties  herein  provided, the chair or
designee shall remove from the list of physicians authorized  to  render
medical  care  under the provisions of articles one to eight, inclusive,
of this chapter and from the list of podiatrists  authorized  to  render
podiatric  care  under  section thirteen-k of this chapter, and from the
list of chiropractors  authorized  to  render  chiropractic  care  under
section  thirteen-l  of  this  chapter  the  name  of  any  physician or
podiatrist or chiropractor whom  the  chair  or  designee,  pursuant  to
section  two  hundred  twenty-one  of  this  article,  shall find, after
reasonable investigation, has submitted to the employer  or  carrier  or

chair  in  connection  with any claim for disability benefits under this
article, a statement of disability that is not truthful and complete.
6.  In addition to other penalties herein provided, any person who for
the purpose of obtaining any benefit or payment under  this  article  or
for  the  purpose of influencing any determination regarding any benefit
payment, knowingly makes a false statement with  regard  to  a  material
fact,  shall  not  be  entitled  to receive benefits with respect to the
disability claimed or any  disability  benefits  during  the  period  of
twelve calendar months thereafter; but this penalty shall not be applied
more than once with respect to each such offense.
7. All fines imposed under subdivisions one and three of this section,
except  as  herein  otherwise  provided,  shall  be  paid  directly  and
immediately by the officer collecting the same to the chair, and be paid
into  the  state  treasury,  provided,  however,  that  all  such  fines
collected  by  justices  of  the  peace  of towns and police justices of
villages shall be paid to the state comptroller in accordance  with  the
provisions of section twenty-seven of the town law.
8.  (a) The head of a state or municipal department, board, commission
or office authorized or required by law to issue any permit  for  or  in
connection  with  any  work  involving  the  employment  of employees in
employment as defined in this article, and notwithstanding  any  general
or  special  statute requiring or authorizing the issue of such permits,
shall not issue such permit unless proof duly subscribed by an insurance
carrier is produced in a  form  satisfactory  to  the  chair,  that  the
payment  of  disability  benefits  and after January first, two thousand
twenty-one, the payment of family leave benefits for all  employees  has
been secured as provided by this article. Nothing herein, however, shall
be  construed  as  creating  any  liability on the part of such state or
municipal department, board, commission or office to pay any  disability
benefits to any such employee if so employed.
(b)  The head of a state or municipal department, board, commission or
office authorized or required by law to enter into any contract  for  or
in  connection  with  any  work involving the employment of employees in
employment as defined in this article, and notwithstanding  any  general
or special statute requiring or authorizing any such contract, shall not
enter  into  any  such  contract  unless  proof  duly  subscribed  by an
insurance carrier is produced in a form satisfactory to the chair,  that
the payment of disability benefits and after January first, two thousand
eighteen,  the  payment  of  family leave benefits for all employees has
been secured as provided by this article.