Summary
In Lusardi, the court found that an amendment that restricted the right of any employee to gain compensation, on the other hand, was prospective.
Summary of this case from Lagano v. Chrysler Corp.Opinion
May 16, 1991
Appeal from the Workers' Compensation Board.
Cherry, Edson Kelly (Henriette Frieder and Robert Carroll of counsel), for appellants.
Robert Abrams, Attorney-General (Howard B. Friedland, Jane Lauer Barker and Theresa E. Wolinski of counsel), for Workers' Compensation Board, respondent.
At issue on this appeal is whether amendments to Workers' Compensation Law § 2 (4) and § 54 (6), which excluded workers' compensation coverage for an employee who is the sole shareholder and executive officer of the corporate employer unless the employer affirmatively elects such coverage (L 1982, ch 396), are applicable to workers' compensation insurance policies which were issued prior to the effective date of the amendments. The Workers' Compensation Board originally decided that the amendments were applicable to this case since claimant's accident occurred after the effective date of the amendments, but upon reconsideration the Board concluded that the amendments do not apply to policies which were in existence prior to the amendments' effective date.
We affirm the Board's decision. Where, as here, the Legislature provides that the statutory provision shall take effect immediately, prospective application of the amendments is appropriate (see, Murphy v. Board of Educ., 104 A.D.2d 796, 797, affd. 64 N.Y.2d 856; see also, County of Rensselaer v. City of Troy, 120 A.D.2d 796, 797). This general rule has been applied in cases involving the Workers' Compensation Law (see, Matter of Small v. Gibbs Press, 248 N.Y. 513). The cases relied upon by the insurers, which involve retroactive application of amendments to the Workers' Compensation Law, extended the rights of injured claimants, thereby furthering the legislative objective of compensating injured employees (e.g., Matter of Busch v. Austin Co., 37 A.D.2d 648, 649). In the present case, a prospective application of the statutory amendments is appropriate because the amendments restricted the right of an employee who is the sole shareholder and officer of the employer corporation by requiring an affirmative election for coverage (L 1982, ch 396), a requirement not in existence when the policy was issued. Prospective application of the statutory amendments at issue will not alter or affect the existing workers' compensation insurance contracts between the employer and the insurers. The Board's decision affirming an award to claimant is not irrational and should be affirmed.
MAHONEY, P.J., WEISS, YESAWICH, JR., and HARVEY, JJ., concur.
Decision affirmed, without costs.