Detailed Answer
When you settle a personal injury claim after a work-related accident, New York’s Workers’ Compensation Law gives the insurer a right to reimbursement or subrogation. You must confirm and resolve any lien before distributing funds.
- Identify the Workers’ Compensation Lien
Request a lien statement from the New York State Workers’ Compensation Board (WCB). This statement lists payments made for medical care and lost wages, plus interest or costs.
- Review Statutory Authority
Workers’ Compensation Law (WCL) §25-a grants the insurer subrogation rights. WCL §29(6) requires you to notify the Board and pay the lien within 30 days of settlement. (WCL §25-a; WCL §29.)
- Verify Lien Amount
Compare the board’s lien statement against your client’s file. Check for duplicate charges, credits, or non-compensable expenses.
- Negotiate Discrepancies
If the statement contains errors, send a written dispute to the WCB and opposing counsel. Provide documentation supporting your position.
- Include Lien in Settlement Documents
Draft the stipulation or judgment of settlement to allocate a portion of the recovery for the lien. Cite WCL §29(6) and reference the WCB file number.
- Notify the Board
Within 30 days of settlement, file Form C-3.1 or C-3.2 with the WCB to report the third‐party recovery. Include a copy of the stipulation.
- Pay the Lien
Submit payment directly to the WCB or the carrier, as instructed. Use a certified check or electronic transfer and attach the lien statement. Keep proof of payment.
- Obtain a Release
After payment, request a partial or full release from the WCB. Keep the release in your client’s file.
Helpful Hints
- Order the lien statement early to avoid delays.
- Track the 30-day deadline in WCL §29(6) to avoid penalties.
- Ensure settlement papers clearly allocate funds for the lien.
- Consider a joint check payable to both the claimant and the Board.
- Keep detailed records of all communications with the WCB.
Disclaimer: This article provides general information under New York law. It does not constitute legal advice. Consult an attorney for guidance on your specific case.