What's happening
This bill requires workers' compensation payments to be directly deposited into a claimant's bank account upon written request.
Why it matters
Empowers injured workers and beneficiaries. By requiring direct deposit upon request, the bill gives claimants more control and convenience over how they receive their compensation, potentially reducing delays linked to paper checks.
Removes employer/carrier veto power. The change eliminates the previous requirement that employers or their insurance carriers must permit direct deposit, making it a right for claimants rather than a discretionary option.
Addresses financial accessibility and security. Direct deposit can help claimants access funds faster, avoid check-cashing fees, and reduce risks of lost or stolen checks—issues that especially impact those recovering from injuries and those without easy bank access.
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Headline styles
Require Direct Deposit for Compensation
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 38
1 Co-sponsor
History
- Referred to labor
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Require Direct Deposit Payments
In Assembly Committee · Labor · Sponsor Phil Steck
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
7081
IN SENATE (Prefiled)
January 8, 2020
Introduced by Sens. CARLUCCI, JACKSON -- read twice and ordered printed, and when printed to be committed to the Committee on Labor
AN ACT to amend the workers' compensation law, in relation to direct deposit of compensation payments
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph (a) of subdivision 9 of section 25 of the workers' compensation law, as amended by chapter 70 of the laws of 2005, is amended to read as follows:
(a) Compensation payments or any portion of compensation payments [may] shall be allowed, upon the written request from an injured worker or a person entitled to a death benefit provided by this chapter, to be deposited directly in a bank for any purpose to an account in the name of such injured worker or person entitled to a death benefit, on forms provided by the board, and duly filed in accordance with such regulations[, provided that an injured worker's employer, if such employer is an authorized self insured employer, or otherwise such employer's insurance carrier, has elected to permit the direct deposit of such compensation payments].
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03521-01-9
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the workers' compensation law, in relation to direct deposit of compensation payments
Purpose or general idea of bill
This legislation seeks to require that companies that pay workers' compensation settlements or payments offer direct deposit.
Summary of specific provisions
Section 1. Paragraph (a) of subdivision 9 of section 25 of the workers' compensation law, as amended by chapter 70 of the laws of 2005, is amended to read as follows:
(a) Compensation payments or any portion of compensation payments (may) shall be allowed, upon the written request from an injured worker or a person entitled to a death benefit provided by this chapter, to be deposited directly in a bank for any purpose to an account in the name of such injured worker or person entitled to a death benefit, on forms provided by the board, and duly filed in accordance with such regu- lations(, provided that an injured worker's employer, if such employer is an authorized self-insured employer, or otherwise such employer's insurance carrier, has elected to permit the direct deposit of such compensation payments.)
§ 2. This act shall take effect immediately.
Justification
Companies that make payments for New York State workers' compensation settlements are now located nationwide, sometimes as far away as Cali- fornia and Washington. There are a growing number of payees in New York State that are financially dependent on their settlements. Due to the various issues with the US Mail, the timeliness of the company in Mail- ing payment, as well the length of time it takes a check to travel across the country, they that do not receive their checks in a timely manner. The payee cannot make a complaint until a payment is 5 weeks late, leaving them without income for 5 weeks. Currently, State law allows payees to receive their payments via direct deposit if the compa- ny offers it, this legislation requires direct deposit be offered.
Prior legislative history
2015-16: S7425/A9485 - LABOR/labor 2017-18: S1776/A2657 - LABOR/labor
Fiscal implications
None to state.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.