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Alternative Dispute Resolution Proposed Rules


Rural Area Flexibility Analysis for 12 NYCRR 314

  1. Types and estimated numbers in rural areas:
    The changes in the rules apply to all ADR employers. ADR employers are currently located in the eastern part of the state from New York City to Albany. However, 314.8 applies to employers in all areas of the state who may potentially share in a portion of liability for claim with an ADR employer.
  2. Reporting, recordkeeping and other compliance requirements; and professional services:
    The amendment to 314.2 changes reporting requirements from 30 to 10 days for any ADR employer, no matter where it is located in the state. However all ADR employers are already required to file an ADR-1. The addition of 314.8 requires ADR employers to file applications with the Board and affected parties for the resolution of issues outside of WCL § 25(2-c). All employers wherever located in the state are potentially subject to 314.8 if an issue arises in a claim as to extent of liability between ADR and non-ADR employers. Additional professional legal services may be needed but should be easily absorbed by the attorneys who presently handle workers' compensation matters for the employers. For non-ADR employers the process is almost identical to existing Board procedure.
  3. Costs:
    No imposition of additional costs is anticipated for the amendment of 314.2. The proposed regulation solely changes the time period in which to file a notice of injury in ADR cases so that it is the same as regular workers' compensation cases.

    Additional costs for the addition of 314.8 will be minimal and should be limited to photocopying, mailing costs, and legal fees associated with applications for relief. The Board's costs will consist of those associated with reviewing and approving negotiated agreements and holding hearings in cases where parties are unable reach an agreement regarding an ADR employer's request for financial relief. As the ADR program is limited in scope and participants, costs are expected to be minor and will be outweighed by the benefits of receiving Special Funds reimbursement and/or apportionment with a non-ADR employer. There is no expectation that costs will vary in rural areas.
  4. Minimizing adverse impact:
    The amendment of 314.2 is designed to minimize adverse impact by requiring a report of injury be filed within 10 days as is the requirement for all other claims under the workers' compensation law.
    Adverse impact is limited on ADR employers because while there are some costs associated with the addition of 314.8, the rule change is necessary to ensure that ADR employers wherever located within the state have access to financial relief non-ADR employers routinely obtain. Non-ADR employers subject to this rule, wherever located, are not any more adversely impacted than under the traditional workers' compensation system.
  5. Rural area participation:
    The Board is in regular contact with all ADR program managers. Prior to proposing these rules, the Board met with some ADR programs and shared copies of the rules, inviting comments, questions, and concerns with the ADR program. The Board received no comments and has been questioned by one ADR program as to when this rule will be in effect.

Please Note: The Board recommends using the latest version of Adobe Reader Link to External Website which is available as a free download from Adobe's web site.

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