2016 New York Laws
WKC - Workers' Compensation
Article 9 - (Workers' Compensation) 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
  and  family leave benefits to his or her employees in one or more of the
  ways provided in section two hundred eleven of this article 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  or her 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 any attending physicians or attending podiatrists  or
  health  care  provider  fixed pursuant to subdivision two of section two
  hundred thirty-two of this article shall, on order of the chair, be paid
  out of the fund established under section two hundred fourteen  of  this
  article.  In case of non-compliance of the employer, such employer shall
  forthwith pay to the chair, for credit to the fund, the sum so  expended
  or  one  percent  of  his  or  her  payroll  for his or her employees in
  employment during the period of non-compliance,  whichever  is  greater;
  provided,  however,  that  if it shall appear to the satisfaction of the
  chair that the default in payment of benefits or the  non-compliance  of
  the employer otherwise with his or her obligation under this article was
  inadvertent,  the  chair  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 percent 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  chair,
  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.
3. The provisions of section one hundred forty-one-b of  this  chapter
  shall  not  apply to violations of this section after January first, two
  thousand  eighteen  and  before  January  first,  two  thousand  twenty.
  Thereafter,  in the event an employer is subject to debarment solely due
  to a penalty for violation of  this  section,  the  chair  may,  in  the
  interests of justice, restore the employer's eligibility to submit a bid
  on  or be awarded any public work contract or subcontract. The chair may
  exercise this  authority  only  if  it  is  the  employer's  first  time
  violation  of  section  one  hundred  forty-one-b  of  this chapter; the
  employer is  not  liable  for  any  outstanding  workers'  compensation,
  disability  or  family leave claims as a result of the lack of coverage;
  and  the  employer  has  paid  all  fines,  assessments,  and  penalties
  associated with the lack of coverage.