Alternative Dispute Resolution Proposed Rules
Regulatory Flexibility Analysis for Small Businesses and Local Governments for 12 NYCRR 314
- Effect of Rule:
Approximately 500 businesses within 4 program groups participate in the ADR program. As a result of the
amendment to 314.2 the small businesses within the ADR program will be required to file an ADR-1 within 10
days of an injury as opposed to within 30 days as was required by the previous rule. The change to 314.2 will
not affect local governments because no local governments participate in the ADR program.
The new 314.8 requires small businesses (or their carriers or third party administrators) within the ADR
program seeking relief involving a claim not subject to WCL § 25(2-c) to file an application with the Board and
all affected parties. These issues will be resolved either by a negotiated settlement which must be approved by
the Board or be resolved by the Board through its adjudication process. Non-ADR small businesses and local
governments who may be responsible for a portion of a claim initially thought to be the sole responsibility of an
ADR employer are also subject to the processes outlined in 314.8.
- Compliance Requirements:
The amendment to 314.2 requires that an ADR-1 be filed within 10 days of the injury instead of 30 days.
The new requirement deals solely with the time period in which to file a report of injury and brings the ADR
time period within which to report injuries into conformance with the time period to file a report of injury for a
traditional compensation claim.
The new 314.8 requires small businesses within the ADR program to file an application for relief with the
Board and all affected parties. The small businesses must also either request approval of a negotiated settlement
or Board adjudication of the issue. It is anticipated that the Board will require the submission of a form or other
paperwork seeking either approval of the settlement or adjudication of the issue.
- Professional Services:
It is believed that no additional professional services will be needed to comply with the amendment to 314.2.
It is believed that no additional professional services will be needed to comply with the addition of 314.8.
While small businesses and local governments may need legal services to prepare settlement agreements and
adjudicate matters before the Board, it is expected that any legal expertise needed would be provided by
attorneys who already handle compensation matters for the small businesses and local governments.
- Compliance costs:
The proposal to amend 314.2 will not impose any compliance costs on small businesses in the ADR
program. They only requirement is that the small businesses file the required form earlier than previously
required. The filing time period is the same as for regular compensation claims.
Compliance costs for the addition of 314.8 include mailing, photocopying and legal fees for small businesses
and local governments are expected to be small and manageable. Annual costs and continuing costs will vary
depending on how many applications for relief an ADR small business must file or how many non-ADR small
businesses and local governments must address. However, a small outlay in expenditures for ADR small
businesses has the potential to result in significant financial relief. Payments by non-ADR employers and local
governments are no greater than their liability would normally be under the workers' compensation law.
- Economic and Technological Feasibility:
The economic costs for the rule changes are negligible. There are no known technological costs and it is
assumed that small businesses and local governments will be able to comply with the changes.
- Minimizing adverse impact:
The amendment to 314.2 is designed to minimize impact to small businesses by having a time period in
which to file reports of injury which is uniform. A uniform accident report filing date will generate consistency
in accident report filing requirements and will assist the Board in accurately and promptly identifying ADR
cases for segregation from customary WCB adjudication processes. Additionally, a uniform rule will reduce
potential confusion amongst employers as to when accident reports need to be filed with the Board.
Adverse impact is limited on ADR small businesses because while there are some costs associated with the
addition of 314.8, the rule change is necessary to ensure that ADR small businesses have access to financial
relief non-ADR employers routinely obtain. Non-ADR small businesses and local governments subject to this
rule are not any more adversely impacted than under the traditional workers' compensation system.
- Small business and local government participation:
The Board is in regular contact with ADR program managers. Prior to proposing theses 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.
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