NYWCB Announces Billing Procedures For Unpaid Penalties

                               

Albany, NY (CompNewsNetwork) - The New York Workers' Compensation Law authorizes the Workers' Compensation Board to impose financial penalties on a party of interest or other regulated entity for failure to comply with certain statutory or regulatory provisions. A list of these penalties includes, but is not limited to, the following:

WC Law Section Description
VFBL 60(4)
VAWBL 60(4)
Volunteer Fireman Review
Volunteer Ambulance Worker Review
110(4) Failure to File C-2
120 Discrimination Penalty
142(5) Review/Appeal
114-a(1) Fraudulent Practices - Claimant
114-a(2) Fraudulent Practices - Other Person
13(g) Hospital Record Penalty
13-g(1) Late Payment of Medical
13-g(4) Medical Arbitration Fee on or after 1/1/97
13-k(6) Podiatry Arbitration on or after 1/1/97
13-l(6) Chiropractic Arbitration on or after 1/1/97
13-m(7)(a) Psychology Arbitration on or after 1/1/97
13-n(3) IME Entity Penalty
25(2-b)(h) Late/Non-Payment of Conciliation
25(3)(c) Unnecessary Delay of Claim - WC
25(3)(c) Unnecessary Delay of Claim - DB
25(3)(d) Frivolous Adjournment
25(3)(e) Failure to File Required Notice/Report
25(3)(f) Late Payment of Comp Award
NYCRR 317.22(a) Violation of Group Self Ins Trust Regs
NYCRR 317.22(b) Failure to File Group Self Ins Trust

In 2009, as part of the development of an updated billing process for these penalties, all parties with unpaid procedural penalties received a bill for past-due penalties dating back to 2003. These bills contained an offer of settlement for those who did not wish to research and appeal each individual penalty because the Board recognized that a small number of invalid penalties might be included in those bills. This process of resolving old penalties is currently being concluded.

This notice is to describe the billing procedure for unpaid penalties moving forward in 2010.

New Billing Procedure

Beginning in the second quarter of 2010, any party to a workers' compensation claim that is assessed a procedural penalty will receive a statement every three months (quarterly) of all outstanding unpaid penalties. The Board will mail the statements to individual accounts throughout the three month period, meaning an account could receive its statement at any time during the quarter.

The statements will include any unpaid balances from previous statements, including those who did not take advantage of the Board's offer of settlement included in the 2009 statements.

For penalties included in the statement, the time to contest the penalty will have already expired. Procedures for questioning the application of payments or any subsequent rescission of individual penalties will be included in each statement.

Delinquent balances will be subject to additional interest. If parties do not voluntarily pay the penalties, the Board will initiate collection actions, which can include a 22% collection fee as allowed under the State Finance Law.

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