2013 New York Consolidated Laws
WKC - Workers' Compensation
Article 9 - (200 - 242) DISABILITY BENEFITS
213 - Non-compliance or default.

 
    §  213. Non-compliance or default. 1. Whenever a covered employer does
  not comply with this article by providing for the payment of  disability
  benefits to his employees in one or more of the ways provided in section
  two  hundred  eleven  or  whenever  a  carrier fails to pay the benefits
  required by this article to employees of a covered employer,  then  such
  employer shall be fully and directly liable to each of his employees for
  the  payment  of  benefits  provided  by this article. The amount of the
  benefits to which employees of such employers are  entitled  under  this
  article  and  attendance fees of their attending physicians or attending
  podiatrists fixed pursuant to subdivision two  of  section  two  hundred
  thirty-two  shall,  on  order  of  the chairman, be paid out of the fund
  established  under  section   two   hundred   fourteen.   In   case   of
  non-compliance of the employer, such employer shall forthwith pay to the
  chairman, for credit to the fund, the sum so expended or one per cent of
  his  payroll  for  his  employees  in  employment  during  the period of
  non-compliance, whichever is greater;  provided,  however,  that  if  it
  shall  appear  to  the  satisfaction of the chairman that the default in
  payment of benefits or the non-compliance of the employer otherwise with
  his obligation under this article was inadvertent, the chairman may  fix
  the sum payable in such case for non-compliance or default at the amount
  paid  out  of the fund and a sum less than one per cent of such payroll,
  and in addition the penalties  for  non-compliance  imposed  under  this
  article. In case of failure of the carrier to pay benefits, the employer
  shall  forthwith pay to the chairman, for credit to the fund, the sum so
  expended.
    2. Where a carrier  authorized  by  the  superintendent  of  financial
  services  to  do  business  in  this state has failed to pay benefits on
  behalf of an employer pursuant to this article solely because  an  order
  of  rehabilitation,  conservation  or  liquidation  has been issued by a
  court  of  competent  jurisdiction  of  this  or  any  other  state   or
  jurisdiction,  the  provisions  of subdivision one of this section shall
  not apply as they relate to: (a) the payment of benefits to an  employee
  if  the  policy  of  the employer's carrier is subject to the protection
  afforded by any guaranty fund pursuant to the insurance law; or (b)  the
  reimbursement to the fund, created under section two hundred fourteen of
  this article, by an employer whose carrier has failed to pay benefits.