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Alternative Dispute Resolution Proposed Rules


Regulatory Flexibility Analysis for Small Businesses and Local Governments for 12 NYCRR 314

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.
  6. 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.
  7. 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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