N.Y. Workers' Compensation Law § 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.