Amd §25, Work Comp L; amd §2, Chap of 2020 (as proposed in S.7210 & A.7579)
Requires an injured worker or person entitled to a death benefit to be provided with the option to have the compensation payment made through direct deposit, and requires such person be given notice of such option and the means necessary to enroll.
STATE OF NEW YORK
________________________________________________________________________
1298
2021-2022 Regular Sessions
IN SENATE
January 11, 2021
___________
Introduced by Sen. SAVINO -- read twice and ordered printed, and when
printed to be committed to the Committee on Rules
AN ACT to amend the workers' compensation law, in relation to the direct
deposit of benefits; and amending a chapter of the laws of 2020 amend-
ing the workers' compensation law relating to the direct deposit of
benefits, as proposed in legislative bills numbers S.7210 and A.7579,
in relation to the effectiveness thereof
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 9 of section 25 of the workers' compensation
2 law, as amended by a chapter of the laws of 2020 amending the workers'
3 compensation law relating to the direct deposit of benefits, as proposed
4 in legislative bills numbers S.7210 and A.7579, is amended to read as
5 follows:
6 9. Direct deposit. (a) Compensation payments [or any portion of
7 compensation payments] shall be [allowed] required, upon the written
8 request from an injured worker or a person entitled to a death benefit
9 provided by this chapter, to be deposited directly in a bank for any
10 purpose to an account in the name of such injured worker or person enti-
11 tled to [a] death [benefit] benefits, [on forms provided by the board,]
12 and duly filed in accordance with such regulations. Each person eligible
13 to receive payment of compensation or [a] death [benefit] benefits under
14 this section shall be notified of the option to receive such payment in
15 the form of direct deposit from the carrier or self-insured employer,
16 such notice to be promulgated by the board. Such eligible person shall
17 also be provided the [forms] means necessary to enroll in direct deposit
18 pursuant to this paragraph in a manner specified by regulations of the
19 board at the same time as notice is given pursuant to this paragraph.
20 (b) The board is hereby authorized to promulgate reasonable rules and
21 regulations, as may be necessary, to administer the direct deposit of
22 [injured worker's] compensation payments. [In regard to the deposit of a
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD07134-01-1
S. 1298 2
1 portion of an injured worker's compensation payment, such] Such regu-
2 lations shall permit the deposit of [a payment] compensation payments to
3 be split between multiple accounts by either a dollar amount or exact
4 percentage, provided, however, such regulations may establish a minimum
5 dollar amount and may limit the maximum number of partial deposits
6 allowed.
7 (c) As used in this subdivision, the term "bank" includes any finan-
8 cial institution which is a member of the New York automated clearing-
9 house or any financial institution designated by the board.
10 (d) Notwithstanding any provision in this subdivision to the contrary,
11 direct deposit of any compensation payment may not be made if such
12 payment would be in violation of any federal or state law or regulation.
13 § 2. Section 2 of a chapter of the laws of 2020 amending the workers'
14 compensation law relating to the direct deposit of benefits, as proposed
15 in legislative bills numbers S.7210 and A.7579, is amended to read as
16 follows:
17 § 2. This act shall take effect [immediately] July 1, 2021.
18 § 3. This act shall take effect on the same date and in the same
19 manner as a chapter of the laws of 2020 amending the workers' compen-
20 sation law relating to the direct deposit of benefits, as proposed in
21 legislative bills numbers S.7210 and A.7579, takes effect.
