§ 28-53-9 - Penalties, taxes and assessments against non-complying employers.
SECTION 28-53-9
§ 28-53-9 Penalties, taxes and assessmentsagainst non-complying employers. – (a) Where it is determined that an employer has failed to maintain a policy ofworkers' compensation insurance as required by Rhode Island general laws §28-36-1 et seq. and that while the employer was uninsured in violation of thestatute, an employee suffered a compensable injury, the uninsured employersfund shall commence the payment of weekly benefits and medical expensesnecessary to cure, relieve or rehabilitate the employee from the effects of thework related injury to the employee as set forth herein, subject to fundavailability. The fund shall acquire a lien against the goods and chattels ofthe uninsured employer to the extent of any payments made by it to the injuredemployee. The lien(s) shall arise and attach as of the date on which the fundmakes payment to the injured employee without further action by the fund or thecourt. The lien shall have priority over all subsequently perfected liens andsecurity interests.
(b) Prior to the lien being filed with the office of thesecretary of state, the employer shall be notified by certified mail, returnreceipt requested that a lien will be filed against all goods situated in thestate if the outstanding tax is not paid within seven (7) business days ofreceipt of the notice.
(c) The liens shall become perfected at the time when anotice of lien is filed pursuant to the filing provisions of Rhode Islandgeneral laws § 6A-9-501. The notice of lien shall include the following:
(1) The name of the debtor, as governed by Rhode Islandgeneral laws § 6A-9-503;
(2) The name of the director of the department of labor andtraining as the party claiming the lien; and
(3) A description of the property so encumbered as governedby the Rhode Island general laws § 6A-9-504.
(d) The director shall be entitled to effectively file thelien and to amend the lien quarterly as additional payments are made orterminate it as necessary.
(e) No filing fee shall be charged for the filing of a lienauthorized by this section.
(f) Where the employer is a corporation, the president, vicepresident, secretary and treasurer of the corporation shall be severallypersonally liable, jointly with a corporation for any payments made to theinjured employee by the fund, and the fund shall acquire a lien against thegoods and chattels of said president, vice president, secretary and treasurerto the extent of any payments so made.
(g) Where the employer is a limited liability company, themanagers and managing members shall be severally personally liable, jointlywith the limited liability company for any payments made to the injuredemployee by the fund and the fund shall acquire a lien against the goods andchattels of said manager and managing member to the extent of any payments somade.
(h) The liens and excise taxes levied against thenon-complying party pursuant to this section shall be in addition to any andall other fines, penalties and assessments, to which the party would otherwisebe liable in particular the penalties mandated by Rhode Island general laws§ 28-36-15.