Frequently Asked Questions
Q:I just received a Stop Work Order and Penalty Notice from the New York State Workers Compensation Board. What Can I Do?
A: This is a very serious problem affecting your business. A Stop Work Order means that you MUST cease all operations and that you cannot conduct any work and earn any money until the Order is officially removed. Further, your receipt of an Order may lead to disbarment from Public Works contracts or subcontracts for one (1) year or up to five (5) years. The Order or a Penalty Notice can be devastating to your business. Section 141(a) of the Workers Compensation Law empowers the Board to issue Stop Work Orders.
You should read the Order and Notice thoroughly. Your response must be carefully considered and, if done incorrectly or inaccurately, you risk making damaging admissions which can cost you thousands of dollars in penalties and a possible subsequent judgment. Instead, speak to our experts who will carefully handle the matter for you helping you save thousands of dollars in penalties.
Q: What should I do if New York State issues my small business a penalty, fine, judgment or Stop Work Order for not having Workers’ Compensation or Disability Insurance?
A: If you are given a penalty, judgment or fine by the New York State Workers’ Compensation Board, you should read the notice thoroughly but do not respond by making any damaging admissions which can cost you thousands of dollars in penalties in the future. Instead, call our experienced New York Workers’ Compensation Board Defense experts who have successfully saved small businesses hundreds of thousands of dollars in judgments and fines from the New York State Workers’ Compensation Board.
Q: What could happen if I ignore the Workers’ Compensation Notice?
A: The worst thing you can do is to ignore the Notice. Your failure to answer the Notice in a timely manner could result in a judgment being issued against your business and, possibly, you personally. Your business could be found responsible for thousands of dollars in fines and penalties in your absence. In addition, this may result in you paying higher insurance premiums for several years. In certain circumstances, this can be avoided by calling us right away.
In addition, the New York State Workers’ Compensation Board could issue a Stop Work Order preventing you from operating your business.
Q: What is a judgment?
A: A valid money judgment is a legal judgment that resolves all the contested issues and terminates a claim and is considered the official decision of the law on the action. In other words, New York State can freeze your business’ bank accounts, place a lien on your business’s real property and equipment and adversely affect your credit report and ability to work vendors.
Q: I already closed my business. Can I be personally responsible for the penalty or judgment?
A: It depends on the circumstances. For more information, call our office and speak with one of our experienced Workers’ Compensation Defense Experts.
Q: What can your Office do for me?
A: Our New York Workers’ Compensation Board experts will fight to protect your business and your assets. Our office know the Workers’ Compensation statutes, the Workers’ Compensation law and the administrative procedures. Based on our arguments and presentation, we have saved companies hundreds of thousands of dollars by obtaining a rescission and/or complete or partial reduction of the judgment. We welcome the opportunity to discuss how we can defend your business against this judgment and protect your business’s valuable business interests and assets. Your business may be exempt from workers’ compensation coverage. Call us now at (646) 226-1921 for a free telephone consultation to learn how to protect and defend your business.
Recently, New York State has increased its efforts to penalize business that did not comply with the State’s Workers’ Compensation law and, as part of the process, the State significantly increased the penalties. Once New York State has obtained a judgment, it can seize bank accounts and place liens on valuable and critical business assets. If unpaid, the amount of the judgment may increase with the accumulation of interest. In addition, a judgment can negatively impact a company’s credit report and score, its ability to obtain financing, and its relationships with vendors.
Q: I received a Notice of Penalty or Judgment for thousands of dollars from the NYS Workers Compensation Board for not having insurance coverage under Section 52(5). Can you help me fight it?
A: Our experts have represented many small business owners, individuals and homeowners (in cases involving nannys and household workers) and argued their best defenses before the Board in appeal and inquiries.We have saved our clients over one million dollars in penalties and fines. In doing so, we have assisted clients avoid bankruptcy, saved their life savings and protected their other assets. We can help you.
Call our office to learn what we can do in your case. The worst step you can make is to ignore the notice as the penalties can increase significantly. Generally, employers are required to carry insurance for instances when an employee gets injured in the workplace. If an employer is not exempt and is found to have violated the statute, below are some of the potential consequences it could face:
1. Criminal: Under Section 52(1)(a) of the WC law, employers with five or more employees who violate the law are subject to a class E felony with monetary fine of no less than $5,000.00 and no more than $50,000.00. Companies with five or less workers are subject to a misdemeanor punishable by a monetary fine of no more than $5,000.00. Further, repeat offenders within the past five years, are subject to class D felony. These cases may be referred to the Attorney General’s office and local district attorney for prosecution. This is a serious matter.
2. Civil and Criminal – Misrepresentation: A company is required to keep accurate records of the number of employees, classification, wages and accidents for its business for the prior 4 years (WCL §131). If an employer does not keep proper records or tampers with their integrity by concealing data or understating data it may be subject to significant monetary fines. In addition, under Sec. 52(1)(d), there are potential criminal consequences for misrepresenting payroll and employment records. Some examples of violations include misclassifying works as “independent contractors” and not employees, and misstating the business’ industry to avoid paying higher premiums (i.e., calling construction workers as administrative staff). This is an area of scrutiny.
3. Civil Money Damages: Under Sec. 52(5), non-compliant employers face penalties of $2,000 dollars for each ten day period of non-compliance, which shall be paid into the uninsured employers’ fund. This penalty can be over $100,000.00 especially if the period of non-compliance is extended over years. Ignoring a notice from the Board is worst thing that you can do. The penalties can increase and converted later to a judgment when the Board can take enforcement steps to collect. For corporations, the president, secretary and treasurer can also be liable for the penalties.
If an employer does not contact the Board, the penalty may be converted into a judgment at a later point. Thereafter, the Board could seize your bank accounts and place a lien on your real property. For example, one client could not sell his house in Nassau County because a lien was placed on it. We acted quickly and were successful in removing the lien and saved our client’s real estate deal. It would have been a disaster if he lost his buyer and could not sell his home. If you received a notice, it is very important to take this matter seriously. Contact one of our skilled experts at (646)226-1921 and learn how to protect yourself and your assets.
Do not construe any content on this page as legal advice.
