What to do if you get a NY State Worker’s Comp Board Penalty Letter
Mar 11, 2021
What to do if you get a NY State Worker’s Comp Board Penalty Letter

The NY Worker’s Comp Board is a state agency in charge of making sure that employees who are injured at work receive treatment and wage replacement benefits. They also ensure that unscrupulous employers don’t shift their liabilities to the Uninsured Employer’s Fund by auditing payroll and income tax filings for compliance with the statutory worker’s compensation laws. Their ultimate goal is to identify uninsured employers and get them in compliance and they take their duty seriously so beware if you end up in their cross hairs. It usually takes more than you think to make it go away.


How will you be notified?

The Worker’s Comp Board will notify an employer of their inquiry with a letter; it is imperative that you do not ignore this inquiry or there can be severe monetary consequences. You typically have 30 days to provide the evidence of coverage or evidence that no coverage was required. If the notice is not responded to the Worker’s Comp Board will automatically generate a penalty notice for the period of time in question. The entity is presumed uninsured, and the penalties are assessed at a rate of $2,000 for each 10-day period that insurance has been unverified which will continue to accumulate over the time of your dispute. You will receive a statement asking that you remit payment within 30 days to avoid collections and the account will be sent to a collections agency after that time period pursuant to NY State Tax Law.
It is the employer’s responsibility to prove that you either had the required insurance or were not required to provide it. Disputes of any items on the statement should be submitted through the appeal/review process indicated on the original invoice, penalty notice or board decision. Your very first step in addressing this penalty is to gather all of your documents. If you have insurance start with you C-105 Certificate of Employer’s liability insurance or the policy declarations page. It’s possible that coverage was replaced with a new carrier and hasn’t yet been updated in the tracking system. In New York State, the policy information is tracked by the Worker’s Comp Board and can be viewed publicly here.  New York is very astute in tracking compliance so you’ll be lucky if this is all it will take.


How to prepare.

The Worker’s Comp Board expects legally documented proof to reverse the penalty. A vague letter from an employer, or an accountant, that coverage was not required during the period in question will not suffice. Payroll and tax records are your best source of information when it comes to your business.
Gather your NYS-45 and IRS 941 payroll tax forms for all years in question. You may also want to gather your completed income tax returns, 1099-Misc forms and any other evidence you have of the true independence of your contractors. Communicate with the Worker’s Comp Board, respond to their letter with everything that they have asked for and make sure that you keep your eyes open for mailed correspondence from the board. They may ask for additional information or forms.


What to do if it’s too much to handle.

If the process seems too daunting, or you’re going in circles and getting nowhere, you might consider the advice of a lawyer. An experienced attorney may better understand what the Worker’s Comp Board is looking for and why. They may also ensure that the documents produced are the ones necessary to resolve the issue without creating new ones. Lastly, a lawyer may be able to help resolve the issue faster which can result in a much lower penalty and let you get back to business faster.


Penalty payment options.

If your business was in-fact not compliant with worker’s compensation coverage when required, act quickly to respond. Penalties accrue every ten days and will add up quickly over time. The penalties assessed can be paid on a payment plan. Set up a payment plan, and make sure that the payments are made consistently until the balance is paid in full. Failure to make good on this debt will affect your ability to obtain worker’s compensation coverage in future businesses, and they have a very long memory.


Services available to you that help.

Moving forward make sure that you work closely with your lawyer, accountant, payroll provider and insurance broker to ensure that you have an effective process when it comes to opening or closing a business, starting a new payroll, sub-contracting work or working with vendors.


Using an Administrative Service Organization, such as SimcoHR, can drastically reduce your chances of being caught off-guard with compliance issues of all kinds including all statutory duties.

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Nurturing Your Mind: Embracing Mental Health Awareness Month

30 Apr, 2024
As we step into May, we're reminded of the importance of mental health and well-being. May marks Mental Health Awareness Month, offering us an opportunity to renew our commitment to nurturing our minds and fostering supportive environments, both in and out of the workplace. In this blog post, we'll explore practical strategies for enhancing mental health, including small tips that can refresh you mentally during the workday. Embracing Self-Care Amid life's hustle and bustle, it's crucial to carve out time for self-care. Whether it's practicing mindfulness, engaging in hobbies, or simply taking a moment to breathe deeply, prioritizing self-care nurtures mental resilience and fosters a sense of inner peace. Cultivating Work-Life Balance In today's fast-paced world, achieving a healthy work-life balance is essential for mental well-being. Set boundaries between work and personal life, establish a routine that includes breaks and leisure activities, and strive to unplug from technology during downtime. Remember, balance is key to sustaining productivity and happiness. Fostering a Supportive Workplace Culture Employers play a pivotal role in promoting mental health in the workplace. Encourage open dialogue about mental health, offer resources such as counseling services or mental health days, and prioritize flexibility to accommodate employees' well-being needs. By fostering a supportive culture, organizations cultivate environments where employees feel valued, understood, and empowered to prioritize their mental health. Supporting Loved Ones If someone you care about is struggling with mental health challenges, your support can make a significant difference. Listen without judgment, offer empathy and reassurance, and encourage them to seek professional help if needed. Remember, your presence and understanding can provide comfort and strength during difficult times. Practicing Gratitude Gratitude is a powerful tool for enhancing mental well-being. Take time each day to reflect on moments of gratitude, whether it's appreciating the beauty of nature, expressing gratitude for supportive relationships, or acknowledging personal achievements. Cultivating a mindset of gratitude fosters resilience and enhances overall happiness. Small Tips to Refresh Your Mind During the Workday  Take short breaks: Step away from your desk for a few minutes to stretch, walk around, or simply gaze out the window. These brief pauses can rejuvenate your mind and boost productivity. Practice deep breathing: Incorporate deep breathing exercises into your day to reduce stress and promote relaxation. Close your eyes, inhale deeply through your nose, hold for a few seconds, and exhale slowly through your mouth. Connect with nature: Spend time outdoors during your lunch break or coffee breaks. Even a brief stroll in a nearby park or green space can invigorate your senses and clear your mind. Listen to music: Create a playlist of soothing music or uplifting tunes to listen to during work breaks. Music has the power to uplift your mood, reduce anxiety, and enhance focus. Stay hydrated: Drink plenty of water throughout the day to stay hydrated and maintain mental alertness. Dehydration can impair cognitive function, so keep a water bottle handy and sip regularly. Practice mindfulness: Take a few moments to practice mindfulness or meditation exercises. Focus on your breath, observe your thoughts without judgment, and cultivate a sense of presence and calm. Declutter your workspace: A clutter-free workspace can promote mental clarity and productivity. Take a few minutes to tidy up your desk, organize files, and create a calming environment conducive to focus. Engage in positive self-talk: Replace negative self-talk with affirming and encouraging statements. Remind yourself of your strengths, accomplishments, and capabilities, and cultivate a mindset of self-compassion and resilience. Connect with colleagues: Build supportive relationships with coworkers by engaging in meaningful conversations, sharing experiences, and offering mutual support. A sense of camaraderie and connection can foster a positive work environment and bolster mental well-being. As Mental Health Awareness Month unfolds, let's commit to nurturing our minds and supporting those around us. By embracing self-care, fostering work-life balance, promoting workplace well-being, and offering compassionate support to loved ones, we contribute to a culture of mental health awareness and resilience. Remember, you are not alone. Reach out for support if you need it, and let's journey toward better mental health together.

DOL Announces Final Overtime Rule Increasing Salary Levels for White-collar Employees

30 Apr, 2024
On April 23, 2024, the U.S. Department of Labor (DOL) announced a final rule to amend current requirements employees in white-collar occupations must satisfy to qualify for an overtime exemption under the Fair Labor Standards Act (FLSA). The final rule will take effect on July 1, 2024. Increased Salary Level The FLSA white-collar exemptions apply to individuals in executive, administrative, professional, and some outside sales and computer-related occupations. Some highly compensated employees may also qualify for the FLSA white-collar overtime exemption. To qualify for this exemption, white-collar employees must satisfy the standard salary level test, among other criteria. This salary level is a wage threshold that white-collar employees must receive to qualify for the exemption. Starting July 1, 2024, the DOL’s final rule increases the standard salary level from: $684 to $844 per week ($35,568 to $43,888 per year); and $107,432 to $132,964 per year for highly compensated employees. On Jan. 1, 2025, the standard salary level will then increase from: $844 to $1,128 per week ($43,888 to $58,656 per year); and $132,964 to $151,164 per year for highly compensated employees. Automatic Updates The DOL’s final rule also includes mechanisms allowing the agency to automatically update the white-collar salary level thresholds without having to rely on the rulemaking process. Effective July 1, 2027, and every three years thereafter, the DOL will increase the standard salary level. The agency will apply up-to-date wage data to determine new salary levels. Impact on Employers The first salary level increase in July is expected to impact nearly 1 million workers, while the second increase in January is expected to affect approximately 3 million workers. Employers should become familiar with the final rule and evaluate what changes they may need to adopt to comply with the rule’s requirements. Legal challenges to the rule are anticipated, which may delay the final rule’s implementation.

New York Passes Prenatal Leave, Sets End Date for COVID-19 Leave

29 Apr, 2024
The recently enacted New York budget for fiscal year 2024-25 includes provisions mandating paid prenatal leave for the state’s workers, beginning Jan. 1, 2025, and repealing the New York COVID-19 sick leave law, effective July 31, 2025. Paid Prenatal Personal Leave The budget amends the state sick leave law by adding what is being touted as a first-in-the-nation requirement that all employers provide their employees with 20 hours of paid prenatal personal leave per 52-week period, starting Jan. 1, 2025. The amendment does not require employees to accrue the new leave, nor does it impose a waiting period before employees may use the leave; the full 20 hours must be made available on Jan. 1, 2025. Employees on leave must be paid their regular rate of pay or minimum wage if the applicable minimum wage is higher; however, employers are not required to pay out unused prenatal personal leave when an employee separates from employment. Permitted Uses of Prenatal Personal Leave Prenatal personal leave may be taken for health care services received by an employee during their pregnancy or related to the pregnancy, including physical examinations, medical procedures, monitoring and testing, and discussions with a health care provider related to the pregnancy. The new provisions do not require advance notification or documentation after the fact for using leave. Interaction With Paid Sick Leave and FMLA Leave The new requirement is in addition to the annual sick leave the law already mandates, which ranges from 40-56 hours and may be paid or unpaid, depending on the employer’s size and income. The amendment does not indicate that the leave runs concurrently with any federal Family and Medical Leave Act (FMLA) leave taken for prenatal care, meaning the state prenatal personal leave would be in addition to any FMLA leave taken for this purpose. Sunset Date for COVID-19 Leave The budget also establishes July 31, 2025, as the expiration date for New York’s COVID-19 employee sick leave law . The law took effect at the beginning of the COVID-19 pandemic, on March 18, 2020, and requires leave of up to 14 days, depending on the size and income of the employer. As with the regular sick leave law, whether leave must be paid also depends on the size and income of the employer. The sunsetting of the law comes in the wake of expired states of emergency and changed recommendations for isolation and quarantine. Steps for Employers New York employers should prepare for the start of paid prenatal personal leave in January 2025 and watch for any agency regulations and guidance implementing the new leave entitlement. Employers should also train managers and supervisors about the new requirements and make sure employee policies and handbooks are up to date. Employers should continue to allow COVID-19 sick leave when it applies and keep in mind that other leave requirements, such as paid sick leave, may allow employees to take time off from work for illness, including COVID-19.

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