New York Court Tightens Workers’ Comp Rules for PEOs
- A New York appellate court has increased the burden of proof for Professional Employer Organizations (PEOs) in workers’ compensation disputes.
- The ruling establishes that standard payroll records alone are insufficient for PEOs to deny liability for non-leased, uninsured workers.
- Consequently, PEO carriers risk absorbing liability for client-employers who fail to secure independent coverage.
- This shift compels carriers to adopt more aggressive auditing of client policies to ensure compliance and mitigate risk.
Supreme Court Captive Ruling Is Good News for Workers’ Comp Funding
- The IRS made things difficult for captive programs by introducing strict reporting rules and heavy fines.
- In the CIC Services case, the Supreme Court ruled that businesses can sue to fight these IRS rules before getting fined.
- This decision is a huge relief for employers who use captives to cover their workers’ compensation liabilities.
- It gives companies a fair chance to protect their alternative risk funding without facing immediate financial penalties.
Court Affirms Worker’s Disability Pay Increase
- ACNR Resources appealed a decision regarding a permanent physical impairment rating for claimant Shine Kellison’s left hand injury.
- A claims administrator originally decided the hand injury equaled a 22% permanent disability rating for financial compensation.
- The Workers’ Compensation Board of Review later increased this rating to a 24% total disability award.
- The Supreme Court of Appeals ultimately affirmed this increase, ensuring the injured worker received the higher compensation payout.