NY Workers' Compensation Alliance Pushes to Have Governor Paterson Sign LaCroix Bill to help Injured Workers
The New York State Assembly transmitted the LaCroix Bill (A2021-B/S2776-B) to Governor David Paterson on August 14, 2009 for either his signature or veto. He has 10 days to sign the bill into law if he agrees with both the New York State Assembly and New York State Senate that this bill not only helps injured workers, but also reduces transactional costs to employers and insurance carriers throughout the State.
We now need your help to ask the Governor to sign this much needed legislationThe WCA, along with our labor and legislative friends across the State, spearheaded the effort pass this bill in both the Assembly and the Senate. Please click here immediately to send a quick message to Governor Paterson asking him to sign this bill.
August 17, 2009
Hon. David A. Paterson
State Capitol
Albany, New York 12224
Re: A2021-B/S2776-B
Dear Governor Paterson:
I urge you to sign A2021-B/S2776-B that has been forwarded to you by the Assembly on August 14, 2009. The enactment of this law will enable the injured workers of New York State to receive their entire awards for permanent damage as a result of a compensable injury as soon as they are awarded the benefits by the Workers' Compensation Board. This bill only applies to "scheduled" losses from severe injuries such as loss of a limb or limbs.
Currently if an injured worker has a severe injury such as loss of an arm or leg, they may not get paid their full award at once. They may receive some money when the finding of the permanent damage is made by the Workers' Compensation Board. However, the balance of the award will be paid in dribs and drabs for an extended period of time.
The schedule loss of use awards that this bill applies to is to compensate for a loss of earning power. The loss of earning power occurs at once and not over time. The value of the loss of earning power is determined when the Workers' Compensation Board makes an award for a scheduled loss of use. Since the amount of a person’s loss of earning power has been determined there is no good reason as to why they should not receive this finite limited and certain award immediately. There is no benefit to any party in a workers' compensation case to delay the payment of the award.
Furthermore, in addition to delay the receipt of the benefits that an injured worker is entitled to receive, the delay in the award creates additional costs to the workers' compensation carriers and self-insured employers in New York State. Rather than sending one check to an injured worker when an award is made they have to continue to send checks to injured workers every two weeks. This creates clerical problems for the workers' compensation carriers and self-insured employers. In addition to the administrative cost of sending out multiple checks to the injured workers there is the possibility that if a payment is missed that they will become liable for a penalties based upon their failure to pay the award as directed. For a person injured today one missed check could cost a workers' compensation carrier or self-insured employer up to $540.00 in penalty payments.
The NYCIRB estimates that A2021-B/S2776-B, if enacted in its current form, will have no direct impact on the value of benefit costs. The NYCIRB does note that it could result in increased premiums to compensate for lost investment income by insurance carriers. Of course all of the recent massive investment losses by the carriers and other large institutional investors, much of which resulted from irresponsible and in some cases fraudulent investment of policy holders money, fall into the same category and are somehow not normally noted by CIRB in cost estimates. Scheduled loss awards are the most severe and should be compensated with sensitivity to the worker’s lost earnings, not concern about lost carrier investment income!
A2021B aids the payment of workers' compensation benefits to the most seriously injured workers in a prompt and timely fashion and saves time and expenses to the workers' compensation carriers and self-insured employers in New York State. Please sign A2021B and make it the law in New York State.
Sincerely,
New York State Workers' Compensation Alliance
Brian Mittman, Victor Pasternack, Co-Chairs – NYS Workers Compensation Alliance
Cc: Hon. Lawrence Schwartz
Hon. Peter Kiernan
David Weinstein, Esq.
Hon. Robert Beloten
Kenneth Munnelley Esq.
Hon. James Wrynn
Hon. George Onorato
Hon. Susan John
