§ 25 — Compensation, how payable

New York § 25

• Jurisdiction: New York
• Law WKC: Workers' Compensation
• Art. 2: Compensation

Text

§ 25. Compensation, how payable. 1. When no controversy; penalties:\nfailure to notify of cessation of payment; late payment of installment.\n(a) The compensation herein provided for shall be paid periodically and\npromptly in like manner as wages, and as it accrues, and directly to the\nperson entitled thereto without waiting for an award by the board,\nincluding those cases previously established and closed by the board\nupon receipt of an application to reopen such case, except in those\ncases in which the right to compensation is controverted by the\nemployer.\n (b) The first payment of compensation shall become due on the\nfourteenth day of disability on which date or within four days\nthereafter all compensation then due shall be paid, and the compensation\npayable bi-weekly thereafter; but the board may determine that any\npayments may be made monthly or at any other period, as it may deem\nadvisable. An award of compensation payable for permanent partial\ndisability under paragraphs a through t, inclusive, of subdivision three\nof section fifteen of this article, shall be payable in one lump sum,\nwithout commutation to present value upon the request of the injured\nemployee.\n (c) If the employer or insurance carrier does not controvert the\ninjured worker's right to compensation such employer or insurance\ncarrier shall, either on or before the eighteenth day after disability,\nor within ten days after the employer first has knowledge of the alleged\naccident, whichever period is the greater, begin paying compensation and\nshall immediately notify the chair in accordance with a form to be\nprescribed by him, that the payment of compensation has begun,\naccompanied by the further statement that the employer or insurance\ncarrier, as the case may be, will notify the chair when the payment of\ncompensation has been stopped.\n (d) Whenever for any reason compensation payments cease, the employer\nor its insurance carrier shall within sixteen days thereafter, send to\nthe chair a notice on a form prescribed by the chair that such payment\nhas been stopped, which notice shall contain the name of the injured\nemployee or his or her principle dependent, the date of accident, the\ndate to which compensation has been paid and the whole amount of\ncompensation paid. In case the employer or its insurance carrier fails\nso to notify the chair of the cessation of payments within sixteen days\nafter the date on which compensation has been paid, the board may impose\na penalty upon such employer or its insurance carrier in the amount of\nthree hundred dollars, which shall be paid to the claimant. Such penalty\nshall be collected in like manner as an award of compensation.\n (e) If the employer or insurance carrier shall fail to pay any\ninstallments of compensation within twenty-five days after the same\nbecome due, there shall be paid by the employer or, if insured, its\ninsurance carrier, an additional amount of twenty percent of the\ncompensation then due which shall accrue for the benefit of the injured\nworker or his or her dependents and shall be paid to him or her or them\nwith the compensation, unless such delay or default is excused by the\nboard upon the application of the employer or insurance carrier upon the\nground that owing to conditions over which the employer or insurance\ncarrier had no control, such payment could not be made. The employer in\neach such instance shall also be assessed the sum of three hundred\ndollars, which shall be paid to the claimant.\n (f) Whenever compensation is withheld solely because a controversy\nexists on the question of liability as between insurance carriers,\nsurety companies, the special disability fund, the special fund for\nreopened cases, or an employer, the board may direct that any carrier,\nsurety company, the special disability fund, the special fund for\nreopened cases shall immediately pay compensation and bills for medical\ncare to the extent payable in accordance with sections thirteen-g,\nthirteen-k, thirteen-l and thirteen-m of this chapter, pending\ndetermination of such issue. Any such payment or payments shall not be\ndeemed an admission against interest by the carrier, surety company,\nspecial disability fund or the special fund for reopened cases. After\nfinal determination, the parties shall make the necessary and proper\nreimbursement including the payment of simple interest at the rate\nestablished by section five thousand four of the civil practice law and\nrules in conformity with such determination.\n 2. Procedure when compensation controverted; penalties: late filing;\ncontroversy without just cause. (a) In case the employer decides to\ncontrovert the right to compensation, it shall, either on or before the\neighteenth day after disability or within ten days after it has\nknowledge of the alleged accident, whichever period is the greater, file\na notice with the chair, on a form prescribed by the chair, that\ncompensation is not being paid, giving the name of the claimant, name of\nthe employer, date of the alleged accident and the reason why\ncompensation is not being paid. When a claim for compensation is filed\nwith medical evidence of work related injury or illness, and the\nclaimant is disabled and not working, and the claimant is otherwise\nentitled to compensation, and the employer is not making payment to the\nclaimant as required herein, and the employer has not controverted the\nclaim, and the efforts to resolve the issue with the carrier have not\nbeen successful, the claimant may request, in the format prescribed by\nthe chair, a hearing to be held within forty-five days of the board's\nreceipt of such request.\n If the insurance carrier shall fail either to file notice of\ncontroversy or begin payment of compensation within the prescribed\nperiod or within ten days after receipt of a copy of the notice required\nin section one hundred ten of this chapter, whichever period is the\ngreater, the board may impose a penalty in the amount of three hundred\ndollars, which shall be in addition to all other penalties provided for\nin this chapter and shall be paid to the claimant. Such penalty shall be\ncollected in like manner as an award of compensation.\n (b) In the event the board shall notify an employer or his insurance\ncarrier that a workers' compensation case has been indexed against such\nemployer, and the employer or insurance carrier decides to controvert\nthe right to compensation, a notice of controversy shall be filed with\nthe chair within twenty-five days from the date of mailing of a notice\nthat the case has been indexed. Failure to file the notice of\ncontroversy within the prescribed twenty-five day time limit shall bar\nthe employer and its insurance carrier from pleading that the injured\nperson was not at the time of the accident an employee of the employer,\nor that the employee did not sustain an accidental injury, or that the\ninjury did not arise out of and in the course of the employment.\nHowever, the board, in the interest of justice, shall, upon the showing\nof good cause therefor, permit the filing or the amendment of a notice\nof controversy to raise an issue not theretofore raised because of\nmistake, inadvertence, omission, irregularity, defect or surprise, or\nbased upon newly discovered evidence.\n (c) If the board shall upon a hearing determine that objections to an\naward of compensation by the employer or insurance carrier were\ninterposed without just cause, it shall state the grounds for such\ndetermination and shall require the employer or the insurance carrier to\npay to the claimant, in addition to the amount presently due under the\naward, the sum of three hundred dollars.\n 2-a. Pre-hearing conference. (a) In any controverted case, upon\nreceipt of the notice of controversy, the board shall schedule a\npre-hearing conference before a referee or conciliator as soon as\npracticable but not to exceed forty-five days after receipt of notice of\ncontroversy and a medical report referencing an injury. The board shall\ngive notice of the pre-hearing conference to all parties. A party may\nappear at such conference pro se, or by an attorney or licensed\nrepresentative or other representative authorized by the board to appear\non behalf of such party.\n (b) The purpose of the conference shall be to consider the following:\n (i) confirmation that all appropriate forms, including medical\nreports, have been submitted and a verification that all information on\nthe forms is accurate;\n (ii) addition of any other necessary parties, where appropriate;\n (iii) simplification and limitation of factual and legal issues, where\nappropriate;\n (iv) presentation of a list of proposed witnesses, where appropriate;\n (v) scheduling the case for a hearing; and\n (vi) entering into a stipulation.\n (c) The referee or conciliator may continue the conference and order\nthe production of any necessary reports, including, where appropriate,\nan examination by a carrier's consultant. At the conclusion of the\nconference, the referee or conciliator may issue a written order. The\nreferee or conciliator may, upon agreement of all parties, issue a\ndecision which shall constitute a decision of the board for all\npurposes. If a claimant shall be unrepresented, a decision issued by a\nreferee upon agreement of all parties at a pre-hearing conference shall\nnot become final until it shall have reviewed and approved by the chair\nor a referee of the board designated by the chair. Such review by the\nchair or an employee of the board so designated shall occur no later\nthan fourteen days from the date the proposed decision is submitted for\nreview and approval. The unrepresented claimant shall have ten days from\nreceipt of notice of such approval to withdraw from the agreement. If\nnot withdrawn, such agreement shall constitute an award of the board for\nall purposes. Upon receipt of written notification of such withdrawal by\nthe unrepresented claimant, the board shall rescind the decision made by\nthe referee and restore the case to the regular hearing calendar\nprocess. Such decision shall constitute a decision of the board for the\npurposes of section twenty-three of this article.\n (d) In cases where the claimant is represented by an attorney or a\nlicensed representative, ten days before the conference, each party\nshall file a conference statement noting the specific issues in dispute,\nincluding the information required in paragraph (b) of this subdivision.\nDiscovery shall close at the end of the pre-hearing conference. Evidence\nnot disclosed or obtained thereafter shall not be admissible unless the\nproponent of the evidence can demonstrate that it was not available or\ncould not have been discovered by the exercise of due diligence prior to\nthe conference. If a claimant is unrepresented, the carrier shall file\nsuch a statement.\n (e) Proceedings in the pre-hearing part shall be conducted in\naccordance with the rules promulgated by the chair or the board.\n 2-b. Conciliation. (a) 1. There is hereby created within the board a\nconciliation process. The conciliation process will permit claims to be\nhandled on a more expeditious and informal basis and provide a mechanism\nfor claims to be addressed without undue controversy.\n 2. Conciliation may also address requests by hospitals, physicians or\nother health care providers for payment of bills rendered by them in any\ncase, regardless of the expected duration of benefits, pursuant to\nsections thirteen-g, thirteen-k, thirteen-l and thirteen-m of this\narticle, and regardless of the dollar amount of the bill.\n (b) Each claim that is filed shall be reviewed for possible transfer\nfor conciliation. Claims where the expected duration of benefits is\nfifty-two weeks or less shall be transferred for conciliation within\nthirty days of receipt of a carrier's response to notice of index\nrequired under this section, except uncontested claims where there have\nbeen only temporary or minor injuries and where board appearance by the\nclaimant is unnecessary. Such minor and uncontested claims shall be\nhandled through a motion calendar as prescribed by the rules and\nregulations promulgated pursuant to this section.\n (c) Upon receipt of a claim for conciliation, a meeting shall be\nscheduled, if necessary, within thirty days with all concerned parties\nbefore a conciliation counsel.\n (d) All information relative to the claim shall be made available to\nall parties no later than five days before the meeting. This information\nshall include, but not be limited to medical records, wage information,\ndate of accident or injury and the amount of time lost from work as a\nresult of such accident or injury.\n (e) At such meeting the conciliation counsel shall promptly and prior\nto any other proceeding authorized under this section inform any\nclaimant participating in the meeting without benefit of a counsel or\nlicensed representative of their right to have representation present,\ntheir right to a reasonable adjournment to procure representation, of\ntheir right to withdraw from any agreement at such meeting in accordance\nwith subdivision (g) of this section and such other and further\ninformation as the chair may require to insure that an uncounselled\nclaimant fully understands the conciliation process. After informing\nclaimant in accordance with this subdivision, conciliation counsel shall\nrequest a written consent to participate in the conciliation process\nfrom claimant, and if such claimant declines to continue, shall\nimmediately cease the conciliation process and cause the claim to be\nrestored to the regular hearing calendar process.\n (f) After reviewing all relevant information, conciliation counsel\nshall prepare a proposed decision which shall be sent to all parties.\nAny party may object to the proposed decision and request a hearing\nwithin thirty days of the receipt of the proposed decision. If no\nobjection is made during such thirty day period the proposed decision\nshall constitute a final award of the board for all purposes except that\nit shall not be reviewable under sections twenty-two and twenty-three of\nthis article. If any party objects to the proposed decision, the case\nshall be transferred to the regular hearing calendar process.\n (g) If a claimant shall be unrepresented, the case shall not be agreed\nto until it shall have been reviewed and approved by the chair or a\nreferee of the board designated by the chair. Such decision shall be\nrendered within fifteen days of receipt of the agreement from the\nconciliation bureau; provided, however, that a claimant shall have ten\ndays from receipt of notice of such approval to withdraw from the\nagreement. If approved, such agreement shall constitute an award of the\nboard for all purposes except that it shall not be reviewable under\nsections twenty-two and twenty-three of this article. Should the\nagreement be disapproved or should the claimant withdraw from the\nagreement as provided herein, the case shall be transferred to the\nregular hearing calendar process.\n (h) After the proposed decision has become final, the carrier shall\nmake payments of any award as required in the decision within ten days.\nIf, however, the carrier does not make the payments as required in the\ndecision within ten days of the date in which the proposed decision\nbecomes final, the chair shall impose of a fine of five hundred dollars\nfor failure to live up to the terms of the decision upon verification\nthat payment has not been timely made. Of that amount, three hundred\ndollars shall be made payable to the claimant and two hundred dollars\nshall be payable to the board for the operation and administration of\nthis chapter.\n (i) If, in any case which has been addressed by conciliation, the\nclaimant requires additional medical care beyond that agreed to or\nrequires benefit payments beyond that agreed to, the meeting, if\nnecessary, shall be reconvened within thirty days from the receipt of\ninformation demonstrating the need for additional medical care or\nbenefit payments. If it is determined that the claimant's condition may\ncontinue for a period of time which is more than six months, such case\nshall be reopened and transferred to the regular hearing calendar. If,\nhowever, it is determined, based on medical evidence, that the\nclaimant's condition will improve in less than six months, the case\nshall remain in conciliation.\n 2-c. Collective bargaining; alternative dispute resolution. (a) For\nthe purposes of employments classified under sections two hundred\ntwenty, two hundred forty and two hundred forty-one of the labor law, an\nemployer and a recognized or certified exclusive bargaining\nrepresentative of its employees may include within their collective\nbargaining agreement provisions to establish an alternative dispute\nresolution system to resolve claims arising under this chapter.\n Any collective bargaining agreement or agreement entered into by the\nemployee and an employer which purports to preempt any provision of this\nchapter or in any way diminishes or changes rights and benefits provided\nunder this chapter, except as expressly provided herein, shall be null,\nvoid and unenforceable.\n (b) Except as specifically provided in this subdivision, nothing in\nthis section or any collective bargaining agreement providing for an\nalternative dispute resolution system for the resolution of claims\narising under this chapter shall preempt any provision of this chapter\nor in any way diminish or change any benefits to which an employee, or\nhis or her dependents, or survivors may be entitled pursuant to the\nprovisions of this chapter.\n (c) The collective bargaining agreement may establish the following\nobligations and procedures:\n (i) an alternative dispute resolution process to resolve claims\narising under this chapter, which may include but is not limited to\nmediation or arbitration;\n (ii) the use of an agreed managed care organization as defined in\nsection one hundred twenty-six of this chapter or a list of authorized\nproviders for medical treatment, which may be the exclusive source of\nall medical and related treatment provided under this chapter;\n (iii) the use of an agreed list of authorized providers for the\npurpose of providing medical opinions and testimony, which may be the\nexclusive source of all such medical opinions and testimony under this\nchapter;\n (iv) benefits for injured workers, their dependents or their survivors\nsupplemental to those provided under this chapter;\n (v) a light duty, modified job, or return to work program;\n (vi) a vocational rehabilitation or retraining program; and\n (vii) worker injury and illness prevention programs and procedures.\n (d) The determination of an arbitrator or mediator pursuant to an\nalternative dispute resolution procedure pertaining to the resolution of\nclaims arising under this chapter shall not be reviewable by the\nworkers' compensation board, and the venue for any appeal shall be to a\ncourt of competent jurisdiction in accordance with section twenty-three\nof this chapter.\n (e) (i) Determinations rendered as a result of an alternative dispute\nresolution procedure shall remain in force during a period in which the\nemployer and a recognized or certified exclusive bargaining\nrepresentative are renegotiating a collective bargaining agreement.\n (ii) Upon the expiration of a collective bargaining agreement which\ncontains a provision for an alternative dispute resolution procedure for\nworkers' compensation claims, the resolution of claims relating to\ninjuries sustained as a result of a work-related accident or\noccupational disease may, if the collective bargaining agreement so\nprovides, be subject to the terms and conditions set forth in the\nexpired collective bargaining agreement until the employer and a\nrecognized or certified exclusive bargaining representative negotiate a\nnew collective bargaining agreement.\n (iii) Upon the termination of a collective bargaining agreement which\nis not subject to renegotiation, the employer and its employees shall\nbecome fully subject to the provisions of this chapter to the same\nextent as they were prior to the implementation of the collective\nbargaining agreement provided, however, that when a claim has been\nadjudicated under the alternative dispute resolution procedure, the\nclaimant or employer to such claim or matter shall be estopped from\nraising identical issues before the board.\n (f) Commencing January first, nineteen hundred ninety-six, and\nannually thereafter, a copy of the collective bargaining agreement shall\nbe filed with the chair. The employer shall report the number of\nemployees subject to the collective bargaining agreement. The chair or\nthe chair's designee shall review the collective bargaining agreements\nfor compliance with the provisions of this section, shall notify the\nparties to the agreement if the agreement is not in compliance, and\nshall recommend appropriate action to bring the agreement into\ncompliance.\n 3. Hearings; procedure; penalty for late payment of award and for\ndilatory tactics or unjustified lack of preparedness of a carrier or\nemployer. (a) The chairman may in the interest of justice at any time\nrefer a case in which payments are being made as above to the board for\na hearing, and shall immediately upon receipt of notice from the injured\nworker, from the employer, or from the insurance carrier that the\nemployee's right to compensation is controverted, or that payments of\ncompensation have stopped or been suspended, make such investigations,\nor cause such medical examinations to be made, or refer the case for\nsuch hearings, as will properly protect the rights of both parties,\neither as to any compensation then due or as to any compensation that\nmay become due in the future for temporary or permanent disability, and\nshall promptly cause the resumption of payments in case the injured\nperson is entitled thereto.\n (b) Nothing herein shall limit the right of the board in a particular\ncase to hold a hearing and make an award in accordance with other\nprovisions of this chapter. No case shall be closed without notice to\nall parties interested and without giving to all such parties an\nopportunity to be heard.\n (c) The board shall keep an accurate record of all hearings held.\nWhenever a hearing must be continued or adjourned because the carrier or\nemployer has engaged in dilatory tactics or exhibited unjustified lack\nof preparedness, the board shall impose a penalty of twenty-five dollars\nto be paid to the fund created by subdivision two of section one hundred\nfifty-one of this chapter and shall in addition make an award of\nseventy-five dollars payable to the injured worker or his or her\ndependants. Dilatory tactics may include but shall not be limited to:\nfailing to subpoena medical witnesses or to secure an order to show\ncause as directed by the referee, failing to bring proper files, failing\nto appear, failing to produce witnesses or documents after they have\nbeen requested by the referee or examiner or as directed by the hearing\nnotice, unnecessarily protracting the production of evidence, or\nengaging in a pattern of delay which unduly delays resolution, except\nthat no penalty shall be imposed nor award made under this subdivision\nif the carrier or employer produces evidence sufficient to excuse its\nconduct to the satisfaction of the referee.\n (d) If, in any case, the issues have not been resolved within one year\nafter such issues have been raised before the board, or if multiple\nclaims arise from the same accident or occurrence, or if all parties\nagree to an expedited hearing, or if a notice of controversy is filed,\nor if the chair otherwise deems it necessary, the chair may order that\nthe case be transferred to a special part for expedited hearings.\nProceedings in such part shall be conducted in an expedited manner.\n Cases in such special part shall be scheduled in such a manner so\nthat, where appropriate, any and all outstanding issues may be addressed\nat one hearing. An adjourned case shall be rescheduled as soon as\npracticable, but no later than thirty days following such adjournment.\n If a request for an adjournment is made by a carrier or employer which\nis not an emergency and is deemed to be frivolous by the chair, a\npenalty of one thousand dollars shall be imposed by the chair. If such\nemployer or carrier is represented by an attorney or licensed\nrepresentative who is not an employee of the carrier or employer, the\nattorney or licensed representative shall be responsible for the payment\nof such penalty. If a request for an adjournment is made by a claimant\nwho is represented by an attorney or a licensed representative which is\nnot an emergency and is deemed to be frivolous by the chair, a penalty\nof five hundred dollars shall be imposed by the chair on the attorney or\nlicensed representative. Such penalty shall be paid by the attorney or\nlicensed representative and shall not come out of the claimant's award.\nNo penalty shall be imposed on an unrepresented claimant who requests an\nadjournment.\n (e) If the employer or its insurance carrier fails to file a notice or\nreport requested or required by the board or chair or otherwise required\nwithin the specified time period or within ten days if no time period is\nspecified, the board may impose a penalty in the amount of fifty dollars\nunless the employer or carrier produces evidence sufficient to excuse\nits conduct to the satisfaction of the board. Such penalty shall be in\naddition to all other penalties provided for in this chapter and shall\nbe paid into the state treasury.\n (f) If the employer or its insurance carrier shall fail to make\npayments of compensation according to the terms of the award within ten\ndays or the uninsured employers' fund shall fail to make payments of\ncompensation according to the terms of the award within thirty days\nafter such ten day period except in case of an application to the board\nfor a modification, rescission or review of such award, there shall be\nimposed a penalty equal to twenty percent of the unpaid compensation\nwhich shall be paid to the injured worker or his or her dependents, and\nthere shall also be imposed an assessment of fifty dollars, which shall\nbe paid into the state treasury.\n (g) Notwithstanding any other provision in this chapter, the chair may\nby regulation elect to establish a performance standard concerning the\nsubject of any penalty or assessment provision applicable to an\ninsurance carrier or self-insured employer, where such penalty or\nassessment is remittable to the New York state treasury, or chair, but\nnot to claimants or any other payee or fund, and impose a single penalty\nor assessment upon the failure to meet that promulgated standard, with\nnotice to the carrier or self-insured employer. The penalty or\nassessment imposed in the aggregate shall be payable to the chair. Such\naggregate penalty or assessment shall be based upon the number of\nviolations as multiplied against the applicable penalty or assessment,\nbut may be negotiated by the chair's designee in full satisfaction of\nthe penalty or assessment. A final agreement between the chair's\ndesignee and the carrier or self-insured employer may be submitted and\napproved subject to section thirty-two of this article, without notice\nto any claimant. Any aggregate penalty or assessment issued herein shall\nbe issued administratively, and the board, and the chair may, by\nregulation, specify the method of review or redetermination, and the\npresentment of evidence and objections shall occur solely upon the\ndocumentation. The carrier or self-insured employer shall receive credit\nfor any instances in which the aggregate penalty or assessment is\ninclusive of a penalty or assessment previously issued and paid in an\nindividual claim or proceeding. A final determination is subject to\nreview under section twenty-three of this article, except that no stay\nin payment of the penalty or assessment shall apply pending the outcome\nof the application for administrative review. Failure to pay the finally\ndetermined penalty or assessment, or the penalty or assessment agreed\nupon pursuant to section thirty-two of this article, within ten days of\nfiling, shall result in the imposition of a twenty-percent penalty,\npayable to the chair. In the event of the carrier or self-insured\nemployer instituting or continuing an issue without reasonable grounds,\nthe provisions of subdivision three of section one hundred fourteen-a of\nthis chapter shall be applicable. Aggregate penalties shall be borne\nexclusively by insurance carriers and licensed representatives pursuant\nto subdivision three-b of section fifty of this article and the costs\nshall not be passed to insured employers.\n 4. Advance payments of compensation; employer reimbursements; receipts\nfor payment. (a) If the employer has made advance payments of\ncompensation, or has made payments to an employee in like manner as\nwages during any period of disability, he shall be entitled to be\nreimbursed out of an unpaid instalment or instalments of compensation\ndue, provided his claim for reimbursement is filed before award of\ncompensation is made, or if insured, by the insurance carrier at the\ndirection of the board, unless he shall file a waiver of reimbursement\nwith the chairman, in which event compensation shall be paid to the\nclaimant notwithstanding the advanced payments.\n (b) An injured employee, or in case of death his dependents or\npersonal representative, shall give receipts for payment of compensation\nto the employer paying the same and such employer shall produce the same\nfor inspection by the chairman, whenever required.\n (c) If the employer or comptroller of the state or city of New York or\ntrustees duly constituted under any welfare, pension or benefit plan,\nagreement or trust to which the injured employee is a party or of which\nhe or she is a beneficiary, and which plan, agreement or trust shall\nprovide that the injured employee shall not be entitled to or shall be\nlimited in the amount of benefits or payments thereunder if he or she\nshall be entitled to benefits under this chapter, shall have advanced or\npaid benefits or payments thereunder to the injured employee during any\nperiod in which his or her right to benefits under this chapter was not\ndetermined, then and in such event such employer or comptroller of the\nstate or city of New York or trustees shall be entitled to be reimbursed\nout of the unpaid instalment or instalments of compensation due,\nprovided claim therefor is filed together with proof of the terms of\nsaid plan, agreement or trust and of the fact and amount of payment with\nthe board before award of compensation is made. The New York city\nemployees' retirement system shall provide to the board on a monthly\nbasis a listing in an electronic format including the names and social\nsecurity numbers of injured employees to whom benefit payments were paid\nor advanced by such system and whose benefit payments are limited by\nworkers' compensation benefits awarded under this chapter. The board\nshall verify which injured employees have been awarded workers'\ncompensation benefits and return the listing to the New York city\nemployees' retirement system including, but not limited to, the\nfollowing information relating to the award for each injured employee:\ndate of accident, board case number, carrier identification number,\ncarrier case number, beginning and ending dates of disability, payment\ninterval, and payment amount. The board shall return the listing to the\nNew York city employees' retirement system no later than fourteen days\nafter its receipt.\n 4-a. Public employee welfare fund; wage replacement payment; lien. a.\nFor the purposes of this subdivision, the following terms shall have the\nfollowing meanings:\n (i) "Public employer" shall mean the state, a municipal corporation, a\nlocal government agency or other political subdivision, a public\nauthority, a public benefit corporation, or any other political\nsubdivision of the state.\n (ii) "Public employee" shall mean all employees of a public employer.\n (iii) "Public employee welfare fund" shall mean any trust fund or\nother fund established or maintained unilaterally or jointly by one or\nmore labor organizations which represent the relevant public employees\nand/or one or more public employers whether directly or through\ntrustees, to provide employee welfare benefits for public employees or\ntheir families or dependents, or for both, including, but not limited\nto, medical, surgical or hospital care or benefits, and benefits in the\nevent of sickness, accident, disability, or death.\n b. Where a public employee who is ineligible for benefits under\nsection two hundred three or two hundred seven of this chapter by reason\nof his public employer's failure to voluntarily elect coverage under\nsection two hundred twelve of this chapter, is disabled and has claimed\nor subsequently claims and is entitled to workers' compensation benefits\nunder this article, and that public employee is covered by a public\nemployee welfare fund which voluntarily provides a wage replacement\nbenefit in the event of disability, the following provision shall apply:\n Where such an employee receives a wage replacement benefit from such a\npublic employee welfare fund in respect of the disability which forms\nthe basis of the workers' compensation claim, the public employee\nwelfare plan making such payment may, at any time before an award of\nworkers' compensation benefits is made, file with the board a claim for\nreimbursement out of the proceeds of such award to the public employee\nfor the period for which the wage replacement benefit was paid to the\npublic employee under the rules of the public employee welfare fund, and\nshall have a lien against the award for reimbursement, provided that the\ninsurance carrier or other entity liable for payment of the award\nreceives, before such award is made, a copy of the claim for\nreimbursement from the public employee welfare fund which paid the wage\nreplacement benefit, or provided that the board's decision and award\ndirects such reimbursement.\n 5. Deposits for security; lump sum payments in certain cases. (a)\nWhenever the chair may deem it advisable any employer or insurance\ncarrier may be required to make a deposit with the chair to secure the\nprompt and convenient payment of such compensation, and the chair, shall\nhave power to make payments therefrom upon any awards. The interest on\nall funds on deposit with the chair pursuant to this paragraph, may be\ntransferred to the uninsured employers' fund whenever the chair shall\ndetermine that the net assets of the uninsured employers fund are less\nthan two million dollars or the amount expended by that fund in the\nprior year whichever is greater.\n (b) The board, whenever it shall so deem advisable, may commute such\nperiodical payments to one or more lump sum payments to the injured\nemployee, or, in case of death, his or her dependents, provided the same\nshall be in the interests of justice. Such commutation shall be made\naccording to the method prescribed in section twenty-seven of this\narticle.\n 6. At the request of a person legally responsible for a minor\nclaimant, the board may, after a hearing, direct that payment be made to\nthe legally responsible person, to be used for the benefit of such\nclaimant. A person who is so designated shall report to the chairman\nannually with respect to the use of such payments. The chairman may\nrequire that a report be made more often than annually if there is\nreason to believe that the person receiving such payments is using the\npayments for purposes other than the benefit of the claimant. Should the\nchairman or the board find that the payee is using the payment for\npurposes other than the benefit of the claimant the board shall after a\nhearing revoke the payee's designation and appoint a new payee. The\nchairman shall take such action as is necessary to recover from the\npayee any funds improperly used.\n 7. Payments and awards to minors. All awards of compensation required\nto be made to minors under this chapter shall be paid to or for the\nbenefit of such minors. The board may in its discretion require the\nappointment of a guardian, before making payments not otherwise directed\nto be paid by action of such board, where such award exceeds two hundred\nand fifty dollars. The board may, when such course seems advisable,\ndirect that funds, payable to or for the benefit of a minor, be paid for\nvocational training or maintenance of such minor supplementing payments\nmade under subdivision nine of section fifteen of this chapter.\n 8. Rules. The board may adopt rules to carry out the provisions of\nthis section, including provision for reports to the chairman by a\nguardian of the use of moneys paid to minors and reports to the chairman\nby a designated payee of compensation to a minor, in accordance with\nthis section.\n 9. Direct deposit. (a) Compensation payments shall be required, upon\nthe written request from an injured worker or a person entitled to a\ndeath benefit provided by this chapter, to be deposited directly in a\nbank for any purpose to an account in the name of such injured worker or\nperson entitled to death benefits, and duly filed in accordance with\nsuch regulations. Each person eligible to receive payment of\ncompensation or death benefits under this section shall be notified of\nthe option to receive such payment in the form of direct deposit from\nthe carrier or self-insured employer, such notice to be promulgated by\nthe board. Such eligible person shall also be provided the means\nnecessary to enroll in direct deposit pursuant to this paragraph in a\nmanner specified by regulations of the board at the same time as notice\nis given pursuant to this paragraph.\n (b) The board is hereby authorized to promulgate reasonable rules and\nregulations, as may be necessary, to administer the direct deposit of\ncompensation payments. Such regulations shall permit the deposit of\ncompensation payments to be split between multiple accounts by either a\ndollar amount or exact percentage, provided, however, such regulations\nmay establish a minimum dollar amount and may limit the maximum number\nof partial deposits allowed.\n (c) As used in this subdivision, the term "bank" includes any\nfinancial institution which is a member of the New York automated\nclearinghouse or any financial institution designated by the board.\n (d) Notwithstanding any provision in this subdivision to the contrary,\ndirect deposit of any compensation payment may not be made if such\npayment would be in violation of any federal or state law or regulation.\n