BILL NUMBER: S4467
SPONSOR: MAYER
 
TITLE OF BILL:
An act to amend the workers' compensation law, in relation to providing
for the enrollment of certain persons in direct deposit for compensation
payments
 
PURPOSE OF BILL:
To ensure that all dependents entitled to death benefits under the work-
ers' compensation law receive those benefits by direct deposit if they
so choose
 
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 amends paragraphs a and b of subdivision 9 of section 25 of
the workers' compensation law to clarify that those persons entitled to
direct deposit payments of death benefits upon request include a surviv-
ing spouse, a surviving domestic partner, a dependent child or dependent
children, and any other person entitled to a death benefit under section
sixteen of the workers' compensation law, and to authorize the workers'
compensation board to issue regulations as necessary to administer the
direct deposit of payments to these persons.
This section also adds paragraph e to subdivision 9 of section 25 of the
workers' compensation law to provide for a penalty against an employer
or insurance carrier who fails to enroll an eligible person in direct
deposit within twenty-five days after a request has been made.
Section 2 establishes the effective date.
 
JUSTIFICATION:
Chapter 253 of the laws of 2020(S7210/A7579) mandated that insurance
carriers provide direct deposit for compensation payments upon the writ-
ten request of an injured worker or a person entitled to death benefits
under the workers' compensation law. The legislation also required that
such personS be given notice of the direct deposit option and the means
necessary to enroll. Chapter 9 of the laws of 2021 (S1298/A1251) made
technical changes to effectuate the intent of the law. The implementing
regulation makes clear that all carriers, self-insured employers, third-
party administrators and special funds must comply with the requirement
to offer the direct deposit option to injured workers and to those
eligible for death benefits.'
Since the law took effect in July of 2021, persons receiving workers'
compensation death benefits from the city of New York have been advised
by city officials, despite what appears to be the plain language of the
current law, that they are not entitled to receive payments by direct
deposit. Despite years of trying to enroll in direct deposit with the
city of New York, dependents have not been allowed to do so, but have
continued to receive payments by mail, leading to delayed and missed
payments. According to the Consumer Financial Protection Bureau, "direct
deposit is usually safer and faster than getting a paper check."2 Those
persons denied the opportunity to receive payments by direct deposit are
subject to the heightened risk that their payments may be lost or
stolen.
This bill makes clear that any dependent receiving death benefits under
workers' compensation law shall have the option to receive those bene-
fits by direct deposit and that those benefits shall be provided through
direct deposit upon request of the dependent.
 
PRIOR LEGISLATIVE HISTORY:
2023-2024: S9279, Referred to Labor.
 
FISCAL IMPLICATIONS:
To be determined
 
EFFECTIVE DATE:
This act shall take effect immediately.
112 NYCRR § 300.26. 2 Consumer Financial Protection Bureau, Should I
enroll in direct deposit?, available at
https://www.consumerfinance.gov/ask-cfpb/should-i-enroll-in-direct-depos
it-en1027/: see also TSA agent charged with stealing $22K check mailed
to NYC defense lawyer, Daily News, April 17, 2024 available at
https://www.nydailynews.com/2024/04/16/tsa-agent-charged-with-stealing-2
2k-che ck-mailed-to-nyc-defense-lawyer/