Thousands of taxi drivers earn a living in New York City, but this hectic, bustling city is fraught with dangers. As such, many NYC cab drivers suffer injuries or work-related illnesses that mean they cannot work. Employers in New York must legally provide workers' compensation coverage, but taxi drivers don't always get the fair treatment they deserve. Learn more about the workers' compensation coverage you should have in New York, and find out what you can do if your employer doesn't follow the rules.
Workers' compensation coverage for cab drivers
New York State employers have to pay for workers' compensation for their workers, and this rule applies equally to companies who employ cab drivers. In some cases, employers argue that they don't need to offer coverage because they don't technically employ the driver, but this is often not true.
According to the New York State Workers' Compensation Board, taxi drivers must receive this benefit unless they lease the car from the taxi owner and the owner personally also drives the vehicle on average for more than 40 hours a week. What's more, the vehicle owner can only treat the driver as an independent contractor if it's not possible to control, supervise or fire the cab driver. Crucially, taxi fleet owners must also provide coverage that protects workers from illness or off-duty injuries.
Employers who don't pay for workers' compensation insurance
If your employer hasn't paid for workers' compensation insurance, you will probably need to take legal action to claim compensation. While this process generally takes longer than filing a workers' compensation claim, you may actually benefit from court action.
Through this type of legal action you can:
- Claim the full amount of your losses, whereas workers' compensation normally applies a cap at around two-thirds of your wage loss.
- Claim extra compensation for emotional distress and other losses that workers' compensation doesn't cover. For example, an incident in your cab could also lead to stress or anxiety for some time after the event.
- Claim for punitive damages, if the employer's behavior caused your injuries. For example, if the employer failed to keep up the cab's maintenance, you could claim punitive damages if the vehicle's condition caused or contributed to your injury.
Of course, workers' compensation claims will sometimes start to pay benefits within a few weeks, while a court case may take years. As such, cab drivers may need to look for financial support elsewhere.
The Uninsured Employers Fund
The New York State Workers' Compensation Board operates an Uninsured Employers Fund or UEF. The UEF oversees claims for medical bills from State workers whose employers failed to pay for workers' compensation insurance. While you are filing a lawsuit against your employer, you can also apply to the UEF for financial support to pay your medical bills. Contact the UEF for more detailed guidance about how to claim urgent medical bills.
Penalties for having no coverage
Employers who don't take out workers' compensation insurance when they should can also face penalties. To operate without coverage is a criminal offense in New York. According to how many drivers an employer has, he or she could face a fine of up to $50,000 for having no insurance.
Misrepresentation is another offense. This applies when inaccurate record keeping takes place that could affect a workers' compensation claim. In some cases, non-compliant employers can face a fine of up to $50,000. If you decide to sue your employer, he or she must also pay all his or her legal costs. If your employer doesn't have insurance, you can file a complaint with the Workers' Compensation Board.
Workers' compensation is vital for taxi drivers, but some employers don't offer the coverage they should. Contact an attorney, such as Prediletto, Halpin, Scharnikow & Nelson, P.S., for more advice.
