Small Business Owners: Beware Workers’ Compensation Traps!
There are several ways that innocent employers find themselves in trouble with the New York State Workers’ Compensation Board:
- An employee or past employee may become injured and report the accident to the state, causing them to investigate and find that you do not have insurance. This can happen even if the reporting employee is lying about the circumstances of his “accident.”
- New York’s Department of Labor may conduct an investigation into your business about an unrelated matter and discover that you don’t carry workers’ comp insurance.
- Someone may report you to the Workers’ Compensation Board. It could be an employee, former employee or someone with no connection to your business.
No matter how it happens, facing penalties or the threat of a shut-down from the state because you don’t have the right insurance is scary. The penalties for workers’ comp violations can be steep and may also involve criminal action against you. You need a legal advocate who knows how to protect your business.
You will receive a notice of penalty or assessment, a collection notice, or a judgment lien from civil court as an “uninsured employer” or citing “no workers comp insurance.” Penalties and assessments can total tens of thousands of dollars. And the state will hold you personally responsible for any benefits they pay out to an injured worker.
If you have concerns, don’t waste time worrying. Take action and contact The Klein Law Group, P.C., for a free consultation. Getting legal help is the first step toward resolving the problem so you can move on.
But I Didn’t Know I Needed Insurance
Many small employers don’t realize that they are required to carry insurance for work injuries until it’s too late. Sometimes an employee injury or penalty from the state is an employer’s first experience handling workers’ comp insurance. It doesn’t make you a bad businessperson or employer – it’s a simple mistake that many business owners make.
While legal trouble is never pleasant, there is some good news: A workers’ comp penalty doesn’t have to devastate your business. At The Klein Law Group, P.C., we have helped many small-business owners resolve these issues and avoid substantial penalties..
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Get the answers you need in a free, confidential consultation with one of our proven small business defense attorneys. To arrange an appointment that’s convenient for you, please fill out our contact form or call 917-639-5350.