N.Y. Workers' Compensation Law § 21-A – Temporary payment of compensation

1. Notwithstanding any other provision of this chapter to the contrary, in any instance in which an employer is unsure of the extent of its liability for a claim for compensation by an injured employee pursuant to this chapter, such employer may initiate compensation payments and payments for medical treatment and care, including prescribed medicine and continue such payments for one year, without prejudice and without admitting liability, in accordance with a notice of temporary payment of compensation, on a form prescribed by the board.
2. The notice of temporary payment of compensation authorized by subdivision one of this section shall be delivered to the injured employee and the board. Such notice shall notify the injured employee that the temporary payment of compensation and medical treatment and care, including prescribed medicine shall not be deemed to be an admission of liability by the employer for the injury or injuries to the employee. The board, upon receipt of a notice of temporary payment of compensation, shall send a notice to the injured employee stating that:
1. (a) the board has received a notice of temporary payment of compensation relating to such injured employee;
2. (b) the payment of temporary compensation and medical treatment and care, including prescribed medicine and the injured employee's acceptance of such temporary compensation and medical treatment and care, including prescribed medicine shall not be an admission of liability by the employer, nor prejudice the claim of the injured employee;
3. (c) the payment of temporary compensation and medical treatment and care, including prescribed medicine shall terminate on the elapse of: one year, or the employer's contesting of the injured employee's claim for compensation and medical treatment and care, including prescribed medicine, or the board determination of the injured employee's claim, whichever is first; and
4. (d) the injured employee may be required to enter into an agreement with the employer to ensure the continuation of payments of temporary compensation and medical treatment and care, including prescribed medicine.
3. An employer may cease making temporary payments of compensation and medical treatment and care, including prescribed medicine if such employer delivers within five days after the last payment, to the injured employee and the board, a notice of termination of temporary payments of compensation on a form prescribed by the board. Such notice shall inform the injured employee that the employer is ceasing temporary payment of compensation and medical treatment and care, including prescribed medicine. Upon the cessation of temporary payments of compensation and medical treatment and care, including prescribed medicine, all parties to any action pursuant to this chapter shall retain all rights, defenses and obligations they would otherwise have pursuant to this chapter without regard for the temporary payment of compensation and medical treatment and care, including prescribed medicine.
4. The failure of an employer to provide the notice of termination, pursuant to subdivision three of this section, within one year of the commencement of temporary payment of compensation shall be deemed to be an admission of liability by the employer and the notice of temporary payment of compensation shall be converted to a notice of compensation payable.