New York City Department of
Law
Workers' Compensation Division: Action
Needed to
Improve the Administration and Management of the Workers'
Compensation
Program
New York City is self-insured, and the claims of all employees of
City agencies, excluding
uniformed workers of the Departments of Sanitation, Police and
Fire, and certain employees of
the BE, HHC,and CUNY, are administered by the City Law
Department's Workers'
Compensation Division (WCD). WCD's mission is to ensure that
employees are paid promptly
for lost earnings and that costs are contained by ensuring that
employees and medical providers
do not receive more than they are entitled to under the NY State
Workers' Compensation Law.
Our review of a sample of 50 claims selected from WCD's data base
files revealed that WCD did
not effectively administer or manage the workers's compensation
claims. WCD often processed
claims without the information needed to make a proper
determination as to the compensability
of the claims. In addition, the City did not meet the ten-day
requirement for reporting certain
accidents to the State Workers Compensation Board and may be
subject to administrative fines
and penalties of as much as $39.9 million. Eleven of our 19
recommendations address the need
for a system that will ensure that all City agencies provide WCD
with timely and complete
reports of accidents and that WCD take the appropriate action
upon receipt of the information.
The Law Department generally disagreed with our conclusions and
recommendations. It
indicated that the audit results did not accurately depict WCD's
efforts or its effectiveness in
administering in claims.
A-20-93