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Club fails to pay workers' compensation insurance - shut down

Federal and state regulations protect workers from unsafe working conditions. When accidents do happen, workers' compensation is available to help cover the costs incurred by the accident. In some situations, New York employers choose not to carry workers' compensation insurance and are unable to pay for their employee's medical conditions. In these situations, the employers can face a variety of punishments.

One New York nightclub has recently been shut down by the New York State Workers' Compensation Board for failing to provide workers' compensation insurance for its employees. The nightclub has been under investigation since an employee was injured in a workplace accident. The owner of the establishment has failed to cooperate with the Board in providing proper coverage for employees.

After the club's owner went two years without purchasing workers' compensation insurance, the Board finally shut down the club. Furthermore, the nightclub owner has been fined $126,000.

If the owner ignores the Board's work-stop order and continues to operate, the police and district attorney are likely to get involved. The man could be arrested and put in jail for violating the order to shut down. However, the Board has made it clear that if the man cooperates they would be willing to work with him to re-open. The Board's concern is for the employees, not collecting the fine.

In almost every case, employers have the duty to protect employees. By not carrying workers' compensation insurance, this nightclub is putting its employees at risk. If a serious accident occurred, that employee may have little financial recourse, and that is unacceptable in the State of New York.

Source: The Brooklyn Paper, "Embattled club won't reopen until all the fines are paid, state officials say," Will Bredderman, Oct. 1, 2012

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