N.Y. Workers' Compensation Law § 213: Non-compliance or default

§ 213. Non-compliance or default. 1. Whenever a covered employer does

not comply with this article by providing for the payment of disability

and family leave benefits to his or her employees in one or more of the

ways provided in section two hundred eleven of this article or whenever

a carrier fails to pay the benefits required by this article to

employees of a covered employer, then such employer shall be fully and

directly liable to each of his or her employees for the payment of

benefits provided by this article. The amount of the benefits to which

employees of such employers are entitled under this article and

attendance fees of any attending physicians or attending podiatrists or

health care provider fixed pursuant to subdivision two of section two

hundred thirty-two of this article shall, on order of the chair, be paid

out of the fund established under section two hundred fourteen of this

article. In case of non-compliance of the employer, such employer shall

forthwith pay to the chair, for credit to the fund, the sum so expended

or one percent of his or her payroll for his or her employees in

employment during the period of non-compliance, whichever is greater;

provided, however, that if it shall appear to the satisfaction of the

chair that the default in payment of benefits or the non-compliance of

the employer otherwise with his or her obligation under this article was

inadvertent, the chair may fix the sum payable in such case for

non-compliance or default at the amount paid out of the fund and a sum

less than one percent of such payroll, and in addition the penalties for

non-compliance imposed under this article. In case of failure of the

carrier to pay benefits, the employer shall forthwith pay to the chair,

for credit to the fund, the sum so expended.

2. Where a carrier authorized by the superintendent of financial

services to do business in this state has failed to pay benefits on

behalf of an employer pursuant to this article solely because an order

of rehabilitation, conservation or liquidation has been issued by a

court of competent jurisdiction of this or any other state or

jurisdiction, the provisions of subdivision one of this section shall

not apply as they relate to: (a) the payment of benefits to an employee

if the policy of the employer's carrier is subject to the protection

afforded by any guaranty fund pursuant to the insurance law; or (b) the

reimbursement to the fund, created under section two hundred fourteen of

this article, by an employer whose carrier has failed to pay benefits.

3. The provisions of section one hundred forty-one-b of this chapter

shall not apply to violations of this section after January first, two

thousand eighteen and before January first, two thousand twenty.

Thereafter, in the event an employer is subject to debarment solely due

to a penalty for violation of this section, the chair may, in the

interests of justice, restore the employer's eligibility to submit a bid

on or be awarded any public work contract or subcontract. The chair may

exercise this authority only if it is the employer's first time

violation of section one hundred forty-one-b of this chapter; the

employer is not liable for any outstanding workers' compensation,

disability or family leave claims as a result of the lack of coverage;

and the employer has paid all fines, assessments, and penalties

associated with the lack of coverage.