Three Herkimer County (New York) municipalities have been ordered by an Oneida County jury to pay the county more than $4 million in back workers compensation benefits. The ruling comes following a six year lawsuit between the county and the municipalities.
According to WKTV, in 2005 Herkimer County municipalities withdrew from the Herkimer County Workers Compensation Self-Insurance Plan because of escalating costs. The plan was formed in 1956. Despite the fact the plan was abolished, there were still 170 outstanding claims the county absorbed. open-ended To make up for the losses the county formed the "Abandonment Plan", giving the option to municipalities that withdrew to pay a withdrawal fee or pay their past share on an annual basis.
In 2005 the Village of Ilion, Village of Herkimer, and Town of Frankfort sued the county over the Abandonment Plan on the basis of multiple complaints it was not valid, and was open-ended. The county counter-claimed against the three municipalities.
A ruling by the jury, May 11, means the three municipalities will pay the following: Village of Ilion $1,100,546 Village of Herkimer $1,617,528 Town of Frankfort $1,369,137.
The county has also filed for an application to collect interest on the amounts which would increase the municipalities’ bill by $2 million.
Author Robert Elliott, executive vice president, Amaxx Risks Solutions, Inc. has worked successfully for 20 years with many industries to reduce Workers Compensation costs, including airlines, healthcare, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing. See www.LowerWC.com for more information. Contact: [email protected]
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