A 7558: Provides for the enrollment of a surviving spouse, a surviving domestic partner, a dependent child or children, or any other person entitled to a death benefit in direct deposit for compensation payments.

  
  STATE OF NEW YORK ________________________________________________________________________ 7558 2025-2026 Regular Sessions  IN ASSEMBLY April 1, 2025 ___________ Introduced by M. of A. REYES -- read once and referred to the Committee on Labor AN ACT to amend the workers' compensation law, in relation to providing for the enrollment of certain persons in direct deposit for compen- sation payments The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Paragraphs (a) and (b) of subdivision 9 of section 25 of 2 the workers' compensation law, as amended by chapter 9 of the laws of 3 2021, are amended and a new paragraph (e) is added to read as follows: 4 (a) Compensation payments shall be required, upon the written request 5 from an injured worker or a person entitled to a death benefit provided 6 by this chapter, to be deposited directly in a bank for any purpose to 7 an account in the name of such injured worker or person entitled to 8 death benefits, and duly filed in accordance with such regulations. Each 9 person eligible to receive payment of compensation or death benefits 10 under this section shall be notified of the option to receive such 11 payment in the form of direct deposit from the carrier or self-insured 12 employer, such notice to be promulgated by the board. Such eligible 13 person shall also be provided the means necessary to enroll in direct 14 deposit pursuant to this paragraph in a manner specified by regulations 15 of the board at the same time as notice is given pursuant to this para- 16 graph. Persons entitled to a death benefit who are eligible to receive 17 compensation payments by direct deposit upon written request pursuant to 18 this subdivision shall include: 19 (i) a surviving spouse; 20 (ii) a surviving domestic partner as defined in section four of this 21 chapter; 22 (iii) a dependent child or children; or 23 (iv) any other person entitled to a death benefit under section 24 sixteen of this article. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD08432-01-5 
 A. 7558 2 1 (b) The board is hereby authorized to promulgate reasonable rules and 2 regulations, as may be necessary, to administer the direct deposit of 3 compensation payments, including payments to a surviving spouse, a 4 surviving domestic partner as defined in section four of this chapter, a 5 dependent child or children, or any other person entitled to a death 6 benefit under section sixteen of this article. Such regulations shall 7 permit the deposit of compensation payments to be split between multiple 8 accounts by either a dollar amount or exact percentage, provided, howev- 9 er, such regulations may establish a minimum dollar amount and may limit 10 the maximum number of partial deposits allowed. 11 (e) (i) If an employer or insurance carrier fails to enroll an eligi- 12 ble person in direct deposit within twenty-five days after a request has 13 been made pursuant to paragraph (a) of this subdivision, there shall be, 14 paid by the employer or, if insured, the insurance carrier, a penalty of 15 twenty percent of the compensation due per pay period, which shall 16 accrue for the benefit of the injured worker or such worker's surviving 17 spouse or dependents, and an additional penalty of three hundred 18 dollars. Such penalties shall be paid to such eligible person. 19 (ii) The board may, upon request by an employer or insurer, excuse 20 such employer or insurer from such penalty if such person could not be 21 enrolled in direct deposit due to circumstances outside of the control 22 of such employer or insurer. 23 § 2. This act shall take effect immediately.