Reimbursement for funeral expenses or memorial services under the Workers' Compensation Law, including but not limited to the following items: grave sites; headstone; organist; priest, minister, rabbi or other officiant; removal from hospital; casket; vault; chapel rental; embalming; preparation fees; hearse; cemetery fees including plot; death certificates; newspaper ad; and cremation costs, shall not exceed $ [6]12,500 in the counties of Bronx, Kings, Nassau, New York, Queens, Richmond, Rockland, Suffolk, and Westchester. In the remaining counties, reimbursement for such funeral expenses shall not exceed $ [5]10,500. This fee schedule shall be applicable to deaths occurring on or after [July 31, 1990] April 1, 2016.

1. Statutory authority: The Workers’ Compensation Board (hereinafter referred to as Board) is authorized to amend 12 NYCRR 311.1. Workers’ Compensation Law (WCL) Sections 16, 141 and 117(1) authorize the Chair to adopt reasonable rules consistent with and supplemental to the provisions of the WCL.

2. Legislative objectives: The proposed amendment to 12 NYCRR Section 311.1 is in accordance with the legislative purpose of reimbursement for the costs of funeral expenses when an employee dies due to a work related injury.

3. Needs and benefits: The purpose of the proposed amendment is to increase the amount of reimbursement available for funeral expenses and permit reimbursement for memorial services. Section 16 of the Workers’ Compensation Law provides for reimbursement of reasonable funeral expenses. Section 16 also provides that the Chair shall determine what is a reasonable funeral expense through consultation with the New York State funeral directors association. The fees for funeral expenses have not been changed since 1990. After consultation with the NYS funeral directors association, it was determined that the reasonable cost for a funeral in the enumerated downstate counties is $12, 500 and the cost for a reasonable funeral in upstate New York is $10, 500.

4. Costs: The proposed amendment will increase costs to insurance carriers and self-insured employers for work related deaths. Nonetheless, these costs have not increased since 1990. The amendment provides for reimbursement that accurately reflects the legislative purpose of determining what is a reasonable expense for a funeral. There are no projected costs to the Board, State and local governments.

5. Local government mandates: The proposed amendment does not impose any mandate, duty or responsibility upon any municipality or governmental entity.

6. Paperwork: The proposed amendment does not increase any paperwork obligations on affected parties.

7. Duplication: There is no duplication of State or federal regulations or standards.

8. Alternatives: There were no significant alternative proposals under consideration. The Board briefly considered simplification of the system to have no difference between upstate and downstate. However, as there is a real difference between the costs in different area of the state, this alternative was not chosen.

9. Federal standards: There are no applicable federal standards which address the standards contained in the proposed regulation.

10. Compliance schedule: It is believed that there are no compliance obligations associated other than an update to Board form(s).

1. Effect of rule: The proposed regulation will not affect insured employers, as defined in WCL § 2(3), including the State, municipal corporations, fire districts, public authorities and political subdivisions, who appear before the Board on matters relating to Workers’ Compensation claims. The rule does not impact insured small businesses or local governments as employers. The rule will impact self-insured employers, who will see their obligation for reimbursement of funeral expenses for work related deaths. Fortunately, work related deaths are a very small percentage of the overall number of workers’ compensation claims field each year. In addition, there has been no increase on this expense in twenty-five years. The increase will bring the regulation in line with the legislative mandate that requires reimbursement for reasonable expenses.

2. Compliance requirements: The proposed regulation does not require any action by small businesses or local governments. The proposed regulation does not impose or require any reporting requirements or additional paperwork on the part of small businesses or local government.

3. Professional services: Small businesses and local governments will not have to engage any professional services as a result of the proposed regulation.

4. Compliance costs: Small businesses and local governments will not incur any compliance costs as a result of this proposed regulation.

5. Economic and technological feasibility: Small businesses and local governments will not incur any capital costs or annual operating costs or be required to purchase or update technological equipment as a result of the proposed regulation.

6. Minimizing adverse impact: The proposed regulation will have no adverse economic impact on small businesses who are no self-insured under the workers’ compensation system. The proposed regulation will have minimal impact on self-insured local governments as their obligation for reimbursement of funeral and memorial expenses will increase in the very small number of work related deaths.

7. Small business and local government participation: Although the proposed regulation does not adversely impact on public or private entities, the Board requested comment on the proposed regulation from the Business Council of New York State.

1. Types and estimated numbers of rural areas: The proposed regulation should not affect employers, as defined in WCL § 2(3), in rural areas, including municipal corporations, fire districts, public authorities and political subdivisions, who appear before the Board on matters relating to Workers’ Compensation claims. The proposed regulation will affect every self-insured employer in the state, regardless of where that business is located, inasmuch as it will increase its reimbursement obligations for funerals and memorial services when an employee suffers a work related death.

2. Reporting, recordkeeping and other compliance requirements; and professional services:The proposed regulation does not require any action by small businesses or local governments in rural areas. The proposed regulation does not impose or require any reporting requirements or additional paperwork on the part of small businesses or local governments in rural areas. Small businesses and local governments in rural areas will not have to engage any professional services as a result of the proposed regulation.

3. Costs: Small businesses and local governments in rural areas will not incur any capital costs, annual operating costs or any compliance costs as a result of the proposed regulation.

4. Minimizing adverse impact: The proposed regulation will have no adverse economic impact on small businesses in rural areas. Self-insured local governments, after twenty-five years of no increase, will see their obligations for reimbursement for funerals and memorial services due to a work related death increase. These cases constitute a very small percentage of the overall number of workers’ compensation claims.

5. Rural area participation: Because the proposed amendment should have no impact on rural areas, the Board has not conducted outreach regarding the proposed amendment.

The proposed rule will not have an adverse impact on jobs. The proposed rule amends Section 311.1 of 12 NYCRR to provide increase in the reimbursement amount for funerals and memorial services due to work related deaths. The rule does not eliminate any existing process, procedure, or program, and will not result in an adverse impact on jobs.