Background Information
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2 Date June 19, 1998 Trans. No. 98 INF-009 Page No. 2 Background Information The purpose of this release is to advise social services districts that in order to obtain Family Type Homes for Adults (FTHA) certification, applicants and operators of Family Type Homes for Adults must prove that they have obtained Workers Compensation and disability benefits coverage, or that such coverage is not required under New York State Worker s Compensation Law. Section 461-b(2)(a) of Social Service Law (SSL) allows approval to operate an adult care facility such as a FTHA only to an operator who satisfactorily demonstrates that any license or permit required by law for the operation of such facility has been issued to such operator. Section 460-e(l) permits the New York State Office of Children and Family Services (OCFS) to require an operator of a Family Type Home for Adults to provide such information and records in such form and at such times as this Office shall determine for the purpose of establishing and maintaining such facilities. The New York State Workers Compensation Law Section 57 and Section of the Disability Benefits Law requires that prior to issuance of a certificate to operate a Family Type Home for Adults by the SOCFS, the applicant/operator must submit proof that the operator has obtained the required workers compensation and disability benefits insurance coverage for any substitute caretakers in the operator s employ, or that the operator is not required to provide such coverage. This law applies both to issuance of new certificates and renewal of such certificates. The information in this release addresses the requirements necessary for operators and districts to comply with these laws and submit the required documentation to OCFS to obtain an operating certificate. Workers Compensation and Disability Benefits Coverage Requirements a. Who Must be Covered The New York State Workers Compensation Board has determined that Workers Compensation Law requires workers compensation insurance overage for any Family Type Home for Adults employing substitute caretakers. Workers Compensation Law requires that all workers in this industry must be covered by workers compensation insurance coverage regardless of the number of hours worked, the workers' relationship to the owners, or whether workers are volunteering their services for the family business. Since under Social Services Law only natural persons may operate a Family Type Homes for Adults, the only exclusion that may be made for Workers Compensation and Disability Benefits is a family type home owned by one individual with no employees.
3 Date June 19, 1998 Trans. No. 98 INF-009 Page No. 3 b. Liability for Operators Under Section 26-a of the Workers Compensation Law, employers who do not obtain appropriate workers compensation insurance coverage may be personally liable for the following: paying an assessment of $250 for each claim incurred while uninsured, plus 15% of the amount awarded (minimum $1,500 - maximum of $5,000); paying the actual award, including both compensation and medical costs; any penalties the Workers Compensation Board assesses for noncompliance. There is a series of penalties for noncompliance with the Workers Compensation Law, including a $250 penalty for every l0 days without the required coverage. a. District Responsibilities Activities Required to Comply with Workers Compensation and Disability Benefits Law 1) Family Type Home Coordinators or other local district staff who are involved in the FTHA program certification or renewal process must become knowledgeable about the provisions of this release to ensure that the required Workers Compensation and Disability Benefit Insurance coverage certification accompanies each Family Type Home for Adults application which they submit to the OCFS. 2) Social service districts must inform FTHA applicants and operators of Workers Compensation and Disability Benefit certification requirements prior to certification or renewal of Family Type Homes for Adults operating certificates. No operating certificate will be issued without proof of Workers Compensation Insurance as required by the Workers Compensation Board being forwarded to the social services district. b. Operator Responsibilities 1) To comply with coverage provisions of the Workers Compensation Law Disability Benefits Law requirements, Family Type Home operators must: - be legally exempt from having to obtain worker s compensation insurance coverage; - obtain such coverage from insurance carriers; or, - be self insured.
4 Date June 19, 1998 Trans. No. 98 INF-009 Page No. 4 b. Operator s Responsibilities, Continued 2) Family Type Home applicants requesting certification or certified operators requesting renewal of their certificates must provide one of the following forms to the local district with their application. The Workers Compensation form must accompany the districts submission of the application to the New York State Office of Children and Family Services: C Statement that Applicant Does not Require Workers Compensation Nor Disability Benefits Coverage; (see Attachment I to this release) OR C Certificate of Workers Compensation Insurance (Attachment II) - AND - DB Certificate of Disability Benefits Insurance (Attachment III); OR SI-12 Certificate of Workers Compensation Self-Insurance (Attachment IV) or GSI-12 Certificate of Group Workers Compensation Self- Insurance - AND - DB-155 Certificate of Disability Benefits Self Insurance (Attachment V) For those operators insured by the State Insurance Fund, it is acceptable for districts to receive a computer generated form, U26.3, in the place of prescribed form C (sample attached, see Attachment VI). 3) Operators may obtain forms from the New York State Workers Compensation Board District Offices: Albany (518) Binghamton (607) New York City (718) Buffalo (716) Hempstead (516) Rochester (716) Syracuse (315) ) Applicants for Approval or Operators of Family Type Home for Adults who have any questions regarding Section 57 of Workers Compensation Law or Section of the Disability Benefits Law should call the New York State Workers Compensation Board, Bureau of Compliance at (518)
5 Date June 19, 1998 Trans. No. 98 INF-009 Page No. 5 The requirement to submit a certificate of Workers Compensation and Disability Benefits Insurance coverage with all new and renewal applications is effective immediately. In the future, the Application for Approval FTHA (DSS-2865) will be revised to indicate that certification of Workers' Compensation and Disability Benefits insurance coverage is a required document for all new and renewal applications. No Family Type Home for Adults operating certificate will be issued without proof of Workers Compensation and Disability Benefits Insurance coverage effective immediately.
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