Former members of the Elite Contractors Trust of New York, a group self-insured trust for workers’ compensation, have received bills totaling $37 million to close the trust’s deficit. Trust administrator FCS Administrators began issuing assessment notices to affected employers on June 30. FCS assumed management of the trust last year after the original administrator, Compensation Risk Managers, LLC, forfeited its license under pressure from the New York Workers’ Compensation Board. IIABNY members have reported that their clients have received bills for assessments ranging from a few thousand dollars up to six figures.
Many IIABNY members have asked how they should respond to inquiries from their affected clients. After consulting with the attorneys at Keidel, Weldon & Cunningham, we recommend that members do the following:
Tell clients to respond quickly to the notices; ignoring them will not make them go away.
Suggest that clients ask FCS for payment plans in addition to those described in the assessment notices. The notices offered plans for up to 36 months, even for those employers that owe hundreds of thousands of dollars.
Clients who have questions about their legal options should consult a qualified contract law attorney. Such an attorney can analyze the trust agreement that the employer signed and will be able to advise the employer on any recourse available.