New York's Workers' Comp Shortfall Nears $1 Billion

A recent Workers' Compensation Board report indicates that New York state's insolvent workers' compensation trusts are running at a nearly $1 billion deficit. The shortfall, thought to be $600 million last summer, is now put at $924.7 million.

The report was drafted in accordance with a new state law requiring semi-annual reports on the 17 insolvent workers' compensation trusts in New York. The new legislation was in response to a dispute between the state and Compensation Risk Managers (CRM) in which the state alleges fraud and mismanagement on the part of CRM.

The state has filed suit against CRM and CRM Holdings in New York Supreme Court in Albany. The state is asking for more than $400 million in damages based upon the alleged mismanagement of the trusts. According to the report, the state is seeking a total of $472 million from CRM and affiliated entities and individuals. In addition, the state is also seeking $33 million in damages against the Hamilton Wharton Group.

Workers' compensation is ultimately in place to insure the financial well-being of employees after injury or illness. It was created for the benefit and protection of workers. The fact that New York state's funds are running at an almost $1 billion shortfall calls into question the current process.

This protection is vital to employees, and if issues arise because of this deficit, employees are the ones that may suffer. If you or a loved one has been injured on the job, and you feel you may be entitled to workers' compensation, contact a workers' compensation attorney in your area today.

Source: Liabilities From Insolvent New York Workers' Comp Trusts Near $1 Billion