N.Y. Workers' Compensation Law § 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.

* NB Effective until January 1, 2028

* 5. In addition to other penalties herein provided, the chair or

designee shall place on the exclusion list pursuant to section

thirteen-d 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.

* NB Effective January 1, 2028

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.