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A recent decision from the New York Appellate Division, Third Department, offers a clear, claimant-leaning reading of Workers’ Compensation Law § 15(3)(w), as well as a practical reminder that suspending indemnity benefits for permanently partially disabled (PPD) claimants is now a longer reach.
In Blake v. Niagara Wheatfield Central School District (Feb. 19, 2026), the court held that once a claimant is classified as permanently partially disabled, with a loss of wage-earning capacity, ongoing labor-market attachment is not required to receive indemnity benefits unless the carrier proves the claimant voluntarily withdrew from the workforce.
Blake v. Niagara Wheatfield Central School District
The claimant sustained two work injuries (2000 and 2017) and was ultimately classified as PPD. The New York Workers' Compensation Board later rescinded indemnity benefits on the older claim because the claimant was not actively seeking employment and therefore was not attached to the labor market.
The Appellate Court held that the Board used the wrong standard. Under the 2017 statutory framework, the lack of a job search does not equal a loss of entitlement. The question is whether the claimant chose to leave the workforce for non-disability reasons.
The Board’s decision was modified, and the matter was remitted for further proceedings.
The Ruling
Once a claimant is classified as PPD with a loss of wage-earning capacity, entitlement to indemnity benefits does not hinge on an ongoing job search or labor-market attachment unless the carrier proves voluntary withdrawal.
That distinction between inactivity and voluntary withdrawal is the key burden of proof in these matters.
Why This Matters for Insurance Carriers
For classified PPD claimants, benefits generally cannot be cut off simply because there is no active job search. The decision narrows the traditional path to suspending indemnity.
If benefits are to be suspended, carriers must build a record showing that the claimant affirmatively chose to leave the workforce for reasons unrelated to the compensable disability. Expect heavier reliance on consistent claimant activity and timelines, as well as documentation of retirement intent and non-medical reasons for leaving work.
When ongoing entitlement is harder to challenge, claimants’ negotiating positions strengthen. That can translate into longer claim duration and higher settlement valuations.
Managing Exposure Under the New Standard
For New York workers’ compensation claims, PPD classification plus no voluntary withdrawal equals continuing indemnity exposure, even without proof of labor-market attachment.
The key question has changed. It’s no longer, “Are they looking for work?” It’s now, “Did they actively choose to stop working?”
If you have questions about how this decision may impact your claims strategy, reach out to Chartwell’s Workers’ Compensation team today.
