Incarceration Upon Conviction of a Felony and its Effects on Attachment to the Labor Market

Attachment to the labor market is an important issue among employers and carriers. By pushing this issue, we can attempt to reduce indemnity costs and aid in the claimant’s return to work. Generally, a claimant who is temporarily partially disabled must show that he or she is attached to the labor market to be entitled to workers’ compensation benefits. The claimant need only seek employment within his or her restrictions, provided by the treating physician, and for a position for which he or she is …

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How Does it Work? Incarceration and Workers’ Compensation Benefits

The incarceration of a claimant receiving workers’ compensation benefits can be used as a defense to payment of indemnity benefits based on two similar, but distinct, arguments.

In general, where the carrier has been directed to pay workers compensation indemnity benefits by the New York Workers’ Compensation Board, the carrier may only suspend indemnity benefits unilaterally (without a new direction from the board) in certain circumstances. Per 12 NYCRR Section 300.23(b)(3)(iv), the carrier is allowed to suspend with proof of the claimant’s incarceration upon conviction …

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