Woman Denied Extreme Financial Hardship After Workplace Injury

Suffering a workplace injury can be devastating. You’re not only injured but also losing money from not being able to work. At what point does it become an extreme financial hardship under state law?

New York law is unclear in this regard. A case from 2010 was denied for extreme financial hardship due to lack of proof.

The claimant in this case was injured in a work-related accident while working as an enrollment specialist. The woman was performing data entry and telephone services at her desk when she bent forward in her chair and fell to the floor. This caused her to suffer back injuries.

In 2014, the woman was classified with a permanent partial disability and an 80% loss of wage earning capacity. Under state law, she was entitled to 425 weeks of indemnity benefits. In December 2020, before her benefits expired, the woman filed an extreme hardship redetermination request. She sought to be reclassified to permanent total disability, which both the employer and its workers’ compensation carrier opposed.

The woman testified at a hearing and the workers’ compensation law judge denied her request, as she had not shown extreme financial hardship. The woman appealed the decision, but upon administrative appeal, the workers’ compensation board affirmed.

The claimant appealed, stating that the board misinterpreted the statutory meaning of the phrase “extreme hardship” when denying her request. Prior to 2007, a permanently partially disabled worker was able to receive benefits for life. However, the 2007 legislative reforms also created a possible safety net for claimants who sustain a permanent partial disability and have not returned to work after they have reached their limit on disability payments.

Extreme hardship is not defined in the statute but typically a claimant seeking reclassification based upon extreme hardship must demonstrate financial hardship to a very high degree and beyond ordinary. In this case, the board considered the woman’s assets and monthly income and expenses and determined that she did not demonstrate extreme financial hardship. She did not have any unusual or unexpected expenses for a person on a fixed income. The fact that her monthly expenses exceeded her income by approximately $300 did not constitute an extreme hardship.

How is Extreme Financial Hardship Defined?

In the context of New York workers’ compensation law, extreme financial hardship refers to situations where an injured worker faces significant and exceptional difficulties that go beyond typical challenges associated with workplace injuries.

An extreme financial hardship request must meet the following criteria:

• The injured worker must be classified with a permanent partial disability of greater than 75%.
• The injured worker must be currently receiving benefits and be within one year of the scheduled exhaustion of benefits.
• The request for redetermination must be filed with the board on the appropriate form within this time frame.

Contact Us for More Information About Workers’ Compensation Benefits

The rules regarding workers’ compensation benefits can be tricky. You need someone to help you navigate the process and ensure that you obtain the compensation you need and deserve.

Contact a White Plains workers’ compensation lawyer from The Law Office of Michael Lawrence Varon to maximize your workers’ compensation settlement. To schedule a consultation, call (914) 228-1770 or fill out the online form.

Source:

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