Outside contract of workmen's compensation provider by MTA leads to payment deferrals for multitudes of staff members
MTA Faces Criticism Over Workers' Compensation Payment Delays
The Transport Workers Union (TWU) Local 100 and the Metropolitan Transportation Authority (MTA) are locked in a dispute over delayed workers' compensation payments, following the MTA's transition to third-party administrator Sedgwick Claims Management Services on May 19, 2025.
Thousands of workers, including injured transit employees, have experienced delays as long as eight weeks in receiving their workers' compensation checks[1][2]. According to TWU Local 100, around 3,500 claimants began experiencing late payments less than two months after the Sedgwick launch[1].
Demetrius Crichlow, president of NYC Transit, acknowledged the payment debacle and the early lessons learned from the transition to Sedgwick. He has been personally engaged with labor partners to address the delays and turn the tide on the issue[1].
However, TWU Local 100 President John Chiarello has been vocal in his criticism of the MTA's decision to outsource comp claims to a private agency. He called it a "half-baked" idea and blamed MTA chair and CEO Janno Lieber for the move[3]. Chiarello also stated that Lieber has a soft spot for privatization and has demonstrated it by sending projects to outside contractors[3].
Midori Valdivia, an MTA board member, finds it unacceptable that employees have not been paid or have experienced late payments. She emphasized that being a vendor for the MTA can be challenging due to its size, but late payments are unacceptable[1].
The MTA is holding Sedgwick accountable and demanding daily reports to track progress on tasks that need to be completed[1]. MTA officials have acknowledged a processing glitch during the transition to Sedgwick that delayed payments during the last pay cycle[1].
Communications from the MTA (circa late July 2025) indicate ongoing efforts to address the backlog and improve the processing of indemnity payments as part of their response to the concerns raised by the union and workers[5].
Despite these efforts, the TWU Local 100 remains critical and demands timely resolution to protect injured workers’ rights and income continuity[1][2][3][5]. The union continues to push for better handling of the claims and adequate support for affected employees.
In a show of solidarity, TWU Local 100 members and leaders expressed anger, frustration, and concern over missed or late payments at an MTA monthly board meeting on Wednesday[4].
Crichlow, understanding the gravity of the situation and the impact on employees' paychecks, has stated that approximately 11% to 35% of workers' compensation recipients are eligible for differential payments from NYC Transit[1].
The current situation underscores the challenges of transitioning to a new system and the importance of ensuring that workers are not left without pay during such transitions. The MTA and TWU Local 100 continue to work together to address the issues and find a solution that benefits all parties involved.
[1] The New York Times [2] amNewYork Metro [3] Gothamist [4] NY1 [5] MTA Communications
- The Transportation industry, specifically the MTA, is currently under scrutiny for delays in workers' compensation payments, affecting the health and wellness of employees, particularly those in the science field such as transit workers dealing with injuries.
- The finance department of the MTA, following its transition to third-party administrator Sedgwick Claims Management Services, has been criticized for its handling of indemnity payments, causing delays in payment and impacting workplace-wellness.
- The Health and Wellness Industry, including unions like TWU Local 100, is advocating for the MTA to improve its processing of workers' compensation claims and ensure timely payments, believing it to be crucial in maintaining the industry's standard of care.
