NYS Workers’ Comp Coverage Enforcement: 2021 Update
By law, businesses are required to secure and maintain continuous NYS Workers’ Comp coverage. This coverage is monitored by the NYS Workers’ Comp Board through an automated computer database system that utilizes a variety of sources. If the WCB finds a business is not or did not maintain Workers’ Comp coverage for any given period of time, a penalty process occurs based on the non-compliance.
NYS Workers’ Comp Penalty Process:
First, an inquiry notice is sent to employers asking them for proof of compliance. The employer has 30 days to respond to this notice. If employers do not fulfill this request, the law requires that they be penalized at a rate of $2,000 for every 10 days of non-compliance. Employers have a right to appeal the penalty by requesting a “Redetermination Review,” in which the Penalty Review Unit reviews the facts and either rescinds, reduces, or upholds the penalties. If penalties are not paid or appealed within 3 months, the WCB sends them to collection agencies. If payment is not received by the collection agencies, a judgment is issued against the business for the penalty amounts.
Even if an employer responds to the inquiry notice, the NYS Workers’ Comp Board can still assess the penalty at a rate of $2,000 per every 10 days. It as at this point that most employers have a large penalty on their desk that they cannot afford and are not sure where to turn. Enforce Coverage Group can help. Contact us. We can assist you in getting the NYS Workers’ Comp Non-Compliance penalty reduced and make sure you are in compliance and stay in compliance.