Authorities Shut Down New York Nightclub for Skimping on Workers’ Comp

October 17, 2012

A popular Brooklyn, N.Y., nightclub called “Amnesia” has been shut down because it apparently forgot to provide workers’ comp insurance for its staff, according to authorities.

Brooklyn Daily, a local newspaper, reported this month that a stop-work order was issued by the New York State Worker’s Compensation Board. The club allegedly didn’t provide workers’ comp insurance to its employees for almost two years, according to authorities. The business has been fined more than $126,000 for this violation, the report said.

The business would need to provide proof of insurance and pay off all its penalties before it can reopen, Brooklyn Daily reported. The club was examined by the Worker’s Compensation Board after one of its employees got injured on the job.

In most cases, employers are required under law to have workers’ comp insurance or to meet self-insurance requirements. The employer is required to pay for the insurance, and employees cannot be required to contribute to the cost of the policy. A workers’ comp insurer may accept a claim, contest a claim, or contest part of a claim filed by an injured worker. The Workers’ Compensation Law was passed by the New York State Legislature in 1914.

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