2023 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.