Rhode Island General Laws 45-19-1.4. Liability for payments to an employee without honoring employer’s lien
Any person or persons, firm or firms, corporation or corporations, making any payment to the employee or to the employee’s attorneys or heirs or legal representatives as compensation for the injury sustained, or sickness contracted after the filing and mailing of the notice, without paying to the employer the amount of its lien or so much of the lien as can be satisfied out of the moneys due under any final judgment or compromise or settlement agreement after paying the amount of any prior liens, shall, for a period of one year from the date of payment to the employee or the employee’s heirs, attorneys, or legal representatives, as previously stated, be and remain liable to the employer for the amount which the employer was entitled to receive as previously stated. Any association, corporation, or other institution maintaining the employer may, within the period, enforce its lien by a suit at law against the employer of the person or persons, firm or firms, corporation or corporations, making the payment.
History of Section.
P.L. 1986, ch. 196, § 1.
Terms Used In Rhode Island General Laws 45-19-1.4
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Lien: A claim against real or personal property in satisfaction of a debt.
- person: may be construed to extend to and include co-partnerships and bodies corporate and politic. See Rhode Island General Laws 43-3-6
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.