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MTA’s transition to exterior employees’ comp agency lead to hundreds of fee delays for workers

newyork-newsBy newyork-newsJuly 30, 2025No Comments3 Mins Read
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MTA’s transition to exterior employees’ comp agency lead to hundreds of fee delays for workers
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Dozens of TWU Native 100 members, together with these gents, flooded an MTA month-to-month board assembly on July 30, expressing anger, fury and concern over missed employees’ comp funds.

Picture by Barbara Russo-Lennon

After the MTA apparently blamed a pc glitch for delays in employees’ compensation claims, transit union reps demanded Wednesday that the company do extra to rectify the scenario and difficulty well timed funds.

Dozens of Transport Staff Union (TWU) Native 100 members and leaders flooded an MTA month-to-month board assembly on Wednesday, expressing anger, frustration and concern over missed or late funds. 

In Might, the MTA partnered with third-party administrator Sedgwick Claims Administration Companies to deal with calls sooner and observe extra claims in an effort to enhance effectivity. 

The union, nonetheless, stated the other occurred. 

Lower than two months after the Sedgwick launch, in response to leaders and members of Native 100, round 3,500 claimants started experiencing late funds, whereas many are nonetheless awaiting their cash from the earlier pay cycle.

A ‘half-baked’ thought

TWU Native 100 President John Chiarello didn’t maintain again when he instantly blamed MTA chair and CEO Janno Lieber for outsourcing comp claims to a non-public company — a transfer he known as a “half-baked” thought. 

“Janno Lieber has a soft spot for privatization, an affection he does not share with our members,” Chiarello stated. “He has demonstrated it time and again by sending projects to outside contractors. In this case, he applied the same mentality to workers’ comp benefits with disastrous results.”

Some members haven’t been paid since June 6, together with a veteran bus driver who put in a long time of labor earlier than getting injured within the line of obligation. 

“Those in strategic initiatives who come up with these half-baked ideas keep screwing up,” Chiarello fumed. “Instead of getting fired, they go upwards and get moved and promoted into other positions.”

Midori Valdivia, an MTA board member, stated it’s “unacceptable” that staff haven’t been paid but or have skilled late funds.

“This is something that requires board attention. It’s good we were notified,” she stated. “Being a vendor for the MTA can sometimes be difficult because we are so big, but it’s pretty unacceptable. A good number of these people are so customer-oriented and New York-focused. These are tough jobs, and these folks are struggling potentially due to injury on duty.”

MTA: ‘We understand the gravity of this’

In the meantime, Demetrius Crichlow, president of NYC Transit, stated the MTA acknowledged the fee debacle. 

“As with any changes, especially this large, we experienced early lessons on how we can work more efficiently with Sedgewick and our labor partners,” he stated. “While approximately 11% to 35% of workers’ compensation recipients are eligible for differential payments from NYC Transit, we are still required to review every claim to determine eligibility.”

However a processing glitch in the course of the transition to Sedgwick delayed funds over the past pay cycle. 

“We understand the gravity of this,” Crichlow stated. “Employees rely on their paychecks, and that break in pay can have lasting impacts on people. I understand the severity and have personally been engaged with our labor partners, and we’re looking to turn the tide on these delays.”

MTA officers stated they’re “holding Sedgwick accountable” and have demanded every day stories to trace progress on “things that are supposed to be done.”

comp delays employees firm MTAs payment result thousands transition workers
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