Propositions in New York which would presuppose that an injured worker who has not refused an offer of re-employment has not voluntarily withdrawn from the labor market, according to bills referred to the committees of both chambers of the legislature.
Memorandum for both SB 6372 and AB 732 states that the measures are intended to prevent insurance companies from denying benefits to injured workers based on an alleged voluntary withdrawal from the labor market unless workers refuse to be re-employed. A statement of reasons included in the Senate's action describes the connection as "a legal fiction" that presupposes that injured workers can get work that complies with the limitations caused by their injury. and employers in the event of injury are not required to offer it, according to the PM. The result is that the state's compensation system requires injured workers to look for work that they can not reasonably expect to receive in order to continue receiving benefits.
“If injured workers stop looking for work or do not document their application properly, insurance companies can . evade its responsibility to support injured workers by claiming that the injured workers have voluntarily withdrawn from the labor market ", it says in the PM. "This bill would correct that injustice."
The explanatory memorandum also states that the bill could reduce the friction costs for employers in dealing with these issues. These friction costs are usually considered losses for the purpose of setting premiums and are transferred directly to employers, according to the PM.
Similar measures have been introduced every year since 201