Under New York law, businesses have an obligation to pay for workers’ compensation insurance. This insurance will help workers receive the compensation they need following a workplace injury. Workers’ compensation insurance is mandatory so that funds are available to pay injured workers. When businesses fail to maintain workers’ compensation insurance, they are fined by the New York Workers’ Compensation Board.

Recently, a famous actors club in New York has announced to its members that it has been fined $30,000 for failing to maintain workers’ compensation insurance. According to reports, the club has suffered from financial difficulty lately. In one media report, it was said to have been $2 million in debt. According to the Workers’ Compensation Board, the club lost its insurance on Oct. 7, 2012 over a failure to pay. At this point the Workers’ Compensation Board began to automatically fine the club $2,000 every two weeks it did not have workers’ compensation coverage.

The club claims that it did not know that the workers’ compensation insurance policy had been cancelled until Feb. 2013. At that point, the club claims that it secured a new workers’ compensation policy which became effective on Feb. 22. However, the new policy has still not been recorded by the Workers’ Compensation Board.

When businesses do not pay for workers’ compensation insurance, it is the workers that suffer. If workers are injured in a workplace accident, then workers’ compensation can be used to cover lost wages, medical expenses and other costs incurred by the worker. Without workers’ compensation, workers could be stuck paying for some of these expenses on their own. When workers are injured they should make sure they understand their rights to compensation so that they are not left with the bills.

Source: New York Neighborhood News, “Players Club Fined $30K for Failing to Insure Workers, Members Say,” Heather Holland, March 12, 2013