Friday F.A.Q: “What is the timeframe for timely payment of an award, and what happens if the payment is late?”

An employer or insurance carrier must issue payment of an award within 10 calendar days of the filing of the decision directing the awards. This timeframe applies to all types of decisions directing awards. These include a Notice of Decision from a hearing, Reserved Decision, Proposed Decision (when it becomes final), Notice of Section 32 Approval, Notice of Stipulated Decision, and a Board Panel Decision.

If the payment is not made within the required timeframe, the employer or carrier will be subject to a penalty, which equals 20% of the unpaid award, plus $50.00. The 20% penalty is paid to claimant or his dependents, and the $50.00 is paid to the state treasury. This is directed by NY WCL §25-3(f).

If the carrier does not issue payment of an installment of ongoing compensation – that is, ongoing weekly benefits – within 25 days of it being due, the penalty is 20% of the amount due, as well as $300, both payable to the claimant. This is directed by NY WCL §25(1)(e). Payment is made when it is mailed to the claimant. Therefore, payment mailed on the 10th day – even though the claimant will not receive it until after 10 days – is timely. The best proof of when a payment was made is the postmarked envelope in which the payment check was mailed.

The exception to this 10-day timeframe is when an Application for Board Panel Review is being filed on the issue of the awards. In such a case, the awards are withheld pending a decision by the Board Panel. If the Application does not pertain to the awards, payment must be made within 10 days

An employer or insurance carrier must issue payment of an award within 10 calendar days of the filing of the decision directing the awards. This timeframe applies to all types of decisions directing awards. These include a Notice of Decision from a hearing, Reserved Decision, Proposed Decision (when it becomes final), Notice of Section 32 Approval, Notice of Stipulated Decision, and a Board Panel Decision.Tashia Rasul, Esq. If the payment is not made within the required timeframe, the employer or carrier will be subject to a penalty, which equals 20% of the unpaid award, plus $50.00. The 20% penalty is paid to claimant or his dependents, and the $50.00 is paid to the state treasury. This is directed by NY WCL §25-3(f).

If the carrier does not issue payment of an installment of ongoing compensation – that is, ongoing weekly benefits – within 25 days of it being due, the penalty is 20% of the amount due, as well as $300, both payable to the claimant. This is directed by NY WCL §25(1)(e). Payment is made when it is mailed to the claimant. Therefore, payment mailed on the 10th day – even though the claimant will not receive it until after 10 days – is timely. The best proof of when a payment was made is the postmarked envelope in which the payment check was mailed.

The exception to this 10-day timeframe is when an Application for Board Panel Review is being filed on the issue of the awards. In such a case, the awards are withheld pending a decision by the Board Panel. If the Application does not pertain to the awards, payment must be made within 10 days.

About “Friday F.A.Q.”

Friday F.A.Q. is a series of articles from LOIS partner Tashia Rasul answering commonly asked questions about New York workers’ compensation law. Tashia’s goal is to provide answers “in a straightforward way” to clear up common confusions and explain New York workers’ compensation tactics and techniques as well as case law application. Look for the articles on our website and by following Tashia on LinkedIn.

Tashia Rasul is an Partner at Lois LLC where she defends employers and carriers in New York workers’ compensation claims. Tashia chairs the Firm’s Diversity Committee and is active in the national Alliance of Women in Workers’ Compensation. She can be reached directly at trasul@lois-llc.com or 201-880-7213.