In light of past accusations brought against Harry’s Nurses Registry (HNR) and its corporate officer Harry Dorvilier—particularly the claim that $1 was wrongfully deducted from a nurse’s paycheck for insurance purposes—documentation from 2005 reveals that such co-payments were, in fact, permissible under New York State guidelines.
On March 11, 2005, under the administration of Governor George E. Pataki, the New York State Insurance Department issued an informal legal opinion addressing the treatment of independent contractors and workers’ compensation coverage (read official memo: https://www.dfs.ny.gov/insurance/ogco2005/rg050315.htm). The letter, signed by the Office of General Counsel and supported by then-Acting Superintendent Howard Mills, confirmed the following:
“There is case law to support an insurer’s right to charge premiums for independent contractors of an employer if there is reasonable risk that the Workers’ Compensation Board would hold such persons to be employees rather than independent contractors.”
This memo clarifies that, regardless of whether an individual was formally classified as an employee or independent contractor, the insurance company could charge premiums unless the individual provided proof of separate coverage. Accordingly, employers like HNR were within legal bounds to require co-payment from individuals such as nurses for workers’ compensation insurance if those individuals did not submit proper exemption documentation or coverage certificates.
DOH Audit & Implementation of Contribution Program
Following a Department of Health audit, HNR consulted its certified public accountant to implement a compliant program. Since nurses were designated as independent contractors (1099), they were required to contribute toward workers’ compensation insurance—an approach fully justified by the 2005 memo. This program aligned with state law: if contractors lacked separate coverage, employers could require their contributions to fulfill insurance responsibilities.
Therefore, these findings directly refute the narrative pushed by certain plaintiffs and their legal representatives—specifically the unfounded accusation that HNR “stole $1” from paychecks. In reality, the amount represented a legitimate, state-recognized insurance deduction under an employer’s obligation to maintain proper coverage when classification of employment status was ambiguous or undocumented.
Improper and False Allegations
HNR paid $428,000 in workers’ compensation premiums on behalf of its 1099 independent contractor nurses. Despite this, the District Attorney falsely alleged that the deducted contributions constituted a personal debt of Harry Dorvilier, the corporate officer of HNR. This claim is factually and legally unfounded. Neither HNR nor Mr. Dorvilier misappropriated any funds; instead, they followed state guidelines based on the Governor’s memo affirming that such contributions are lawful for independent contractors. Furthermore, Judge Milton A. Tingling’s ruling in prior civil proceedings recognized that the nurses were, in fact, independent contractors, not employees—further validating the legitimacy of HNR’s practices under New York law.
Habeas Corpus Attempt & Federal Dismissal
Harry Dorvilier later filed a habeas corpus petition under 28 U.S.C. § 2255 (Case No. 16 Civ. 01765), seeking to vacate criminal charges tied to these deductions. The federal court denied relief, stating that the indictment already issued by the state courts could not be undone under § 2255. The court did not overturn the DFS memo or HNR’s insured-deduction program.
About Governor George E. Pataki
George E. Pataki served as the 53rd Governor of New York from January 1, 1995, to December 31, 2006. A Republican with a reputation for pragmatic governance, Pataki led the state through pivotal moments, including post-9/11 recovery, environmental initiatives, and state healthcare reform. His administration was known for balancing fiscal conservatism with regulatory modernization.
Governor Pataki’s leadership during this period was instrumental in providing legal clarity to businesses and nonprofit entities operating in highly regulated sectors, including healthcare. His support of employer responsibilities under the New York Workers’ Compensation Law, including the 2005 opinion regarding co-payments and independent contractor classification, continues to serve as precedent in matters of wage and insurance compliance.
Conclusion
The 2005 memo, issued under Governor Pataki’s administration, verifies that HNR’s $1-per-hour insurance deduction from independent contractors was lawful and aligned with state policy. The DOH-audited implementation and CPA-designed contribution program further confirm compliance. Bernstein’s later claims of employee misclassification conflict with both legal precedent and regulatory enforcement. While federal habeas relief was denied, the DFS opinion continues to uphold the legal rationale behind HNR’s actions.
