Employer Compliance
102
Mission
1. Get the “right” Policy
2. Pay uninsured injured workers
Compliance
IC-2
DOL
IC-2 Carriers
Employers Policies
Employers that Employers are matched
don’t match a WC Policy with a WC Policy
are processed further
Inquiry Letter is sent
§52-5 Penalty is assessed
Referral is made to Collection
Agency is filed
Judgment
Judgments Filed 52.5
1999 - 2009
25,000 23,825
19,995
20,000
18,379
17,884
15,000
11,234
9,849
10,000
6,506
4,989
4,638
5,000
1 0
0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
26-a Judgments Filed
1800
1600 1,547
1400
1200
1000 931 907
802 783
800
672
600
465 499 503
400
266
200
0
0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Criminal Prosecutions Pursuant to Section 52
1998 - 2009
120
113
106
100
87
79
80 76
65
60 57
40
20 23
20 15
0 0
0
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
UEF Receipts
1998 - 2009
$40,000,000
$36,605,000
$35,000,000
$32,020,000 $32,550,000 $31,161,000
$30,000,000
$25,000,000
$22,033,000
$20,000,000
$15,000,000
$9,988,000
$10,134,000
$10,000,000 $8,791,000
$8,277,000
$6,142,000
$4,670,000 $4,533,000
$5,000,000
$0
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
UEF Receipts less Disbursements
1998 - 2009
$15,000,000
$13,553,000
$10,000,000
$8,805,000
$4,606,000 $4,481,000
$5,000,000
$530,000
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
$0
-$5,000,000
-$5,021,000
-$5,624,000
-$7,020,000 -$6,754,000
-$7,405,000
-$8,102,000
-$10,000,000
-$10,581,000
-$15,000,000
Dependencies
Employer Files Carrier Files
DOL Carriers
IC-2
Uninsured
Employers
IC-2 Dependent on Carrier Filing
•Carriers Of Coverage information was not being
Proof
timely submitted by carriers.
Policies
– Penalizing employers who are properly insured
– Creates unnecessary work for the employer, the
carrier and the WCB.
POC Penalty
• We educated, created reports, published their
timely filed percentage on the web - no change
in carrier behavior
• POC penalty starts 3rd quarter 2009
• Attention received!
• Created Performance Standard 85%
• Created a POC Working Team
Independent Livery Driver Benefit
Fund
• Eliminated Independent Contractor argument
for livery drivers
• All bases in NYC, Nassau, Westchester must be
members of ILDBF or have a full policy
• Pays benefits to livery drivers while providing
covered services for death, serious injury and
injuries resulting from a crime
Second Leg-Field Investigation
Compliance
300
Stop Work Orders
280 271
260
245
240
220 208
196 202
200 197
188 194
187 186
178 177 178
180
164 165
160 154 156
151 153
147 148
140 128
132
128
118
120 112 109
105
100 96 98
80
60
40 31
20 15
5 4 1 5 4 7
0
7/07 – 12/07 1/08 - 12/08 1/09 – 12/09 1/10 – 8/10
Third Leg-Section 57
Compliance
Fourth Leg-Education
Compliance
Compliance Rate
100
December 2009 93.9%
95
January 2010 93.9%
90
February 94.0%
March 94.1% 85
April 94.1% 80
Dec- Jan- Feb- Mar- Apr- May- Jun- Jun- Aug- Sep-
May 94.1% 09 10 10 10 10 10 10 10 10 10
June 94.0%
July 94.0%
August 93.9%
September 93.8%
Section 50 Violations
2000 - 2010
700
600 563
547
503 496
497 480 469
500
434
408 403
400
369*
300
200
100
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
* Projected
2009 Uninsured Claims by Business Type
Miscellaneous
26%
Construction/Roofing
35%
Construction/Roofing
Livery
Restaurant
Delivery
Delivery Miscellaneous
5%
Restaurant
10%
Livery
24%
Total Number of Claims - 496
Procedural Penalties
• Procedural penalty billing system integrated into
FMIS in October 2008. Seamless transfer of
penalties from CIS and HPA into FMIS.
• Quarterly billing statements are now issued to
Carriers/Self-Insureds/TPAs/Attorneys
• Receipts increased due to billing statements:
– FY 07-08 $1.2 million
– FY 08-09 $3.0 million
– FY 09-10 $4.9 million
Procedural Penalties
• Procedural Penalty Performance
Improvement team
– Who gets the penalty
– Who gives the penalty
Thank you Compliance Staff!
2nd Annual Best Friend of
Compliance Award