Shift to an external workers' compensation company by MTA causes substantial payment delays for numerous employees
In a recent development, members of the Transport Workers Union (TWU) Local 100 have expressed anger, frustration, and concern over missed or late payments at an MTA monthly board meeting. This issue stems from a processing glitch during the transition to a new vendor, Sedgwick Claims Management Services, which has caused interruptions in payment processing, resulting in delayed payments to injured workers.
The MTA has acknowledged the problem, attributing the issues to "early lessons" in adapting to working with Sedgwick. The agency stated that it was holding Sedgwick accountable, requiring daily progress reports to resolve the issue.
Demetrius Crichlow, president of NYC Transit, has acknowledged the payment debacle and its impact on employees. He mentioned that a processing glitch during the transition to Sedgwick delayed payments during the last pay cycle. Crichlow also stated that approximately 11% to 35% of workers' compensation recipients are eligible for differential payments from NYC Transit.
TWU Local 100 President John Chiarello immediately blamed MTA chair and CEO Janno Lieber for outsourcing workers' compensation claims to a private agency. According to union leaders and members, the opposite occurred after the Sedgwick launch, with some members not being paid since June 6.
MTA board member Midori Valdivia finds it unacceptable that employees have not been paid or have experienced late payments. She emphasised that this issue requires board attention, given the MTA's size and the nature of the jobs involved.
In an effort to improve efficiency, the MTA partnered with Sedgwick Claims Management Services in May to handle calls faster and track more claims. However, critics urge the MTA to either fix the system glitches quickly or consider bringing the claims management back in-house to prevent future disruptions.
Union leaders representing the affected workers demanded accountability and action at MTA board meetings, protesting the widespread delays impacting over 3,500 injured transit employees. The union also filed a grievance regarding the delays, although most outstanding payments were expected to be resolved by the end of July 2025.
Crichlow has personally been engaged with labor partners to turn the tide on the delays, and the MTA is holding Sedgwick accountable, demanding daily reports to track progress on resolving the issues. Despite this, many claimants are still awaiting their money from the previous pay cycle.
Sources:
- MTA acknowledges problem with Sedgwick, blames computer glitch for delayed workers' comp payments
- MTA blames computer glitch for delayed workers' comp payments to transit union members
- MTA Outsources Workers' Compensation Claims Processing to Sedgwick Claims Management Services
- Transit Workers Union Protests Delayed Workers' Compensation Payments
- MTA Blames Computer Glitch for Delayed Workers' Compensation Payments
- Despite the MTA's efforts to enhance workplace-wellness by partnering with Sedgwick Claims Management Services, the health-and-wellness of its employees has been compromised due to delayed payments from the aforementioned agency, as highlighted by the Transport Workers Union Local 100.
- In light of the financial losses incurred by delayed payments, critics within the industry have advocated for the MTA to reconsider its partnership with Sedgwick Claims Management Services or rectify the system glitches to prevent future disruptions in payment processing.
- As the MTA looks to the future of finance, it must prioritize addressing the concerns raised by the Transport Workers Union Local 100 and ensure smooth operations in the health-and-wellness sector, which is critical for the success of both the industry and the overall transportation system.
