N.Y. Comp. Codes R. & Regs. tit. 12 § 300.29
Any party liable for the payment of a compensation award may modify the distribution of such payment without the necessity of a Workers' Compensation Law judge hearing or notice of decision where such modification is made in order to comply with an income execution or income deduction issued pursuant to an order of support as defined in CPLR 5241 and CPLR 5242 which has been served upon said party. Where said party is otherwise required to file electronically a notice of payment modification pursuant to section 300.22, the notice of payment modification and a copy of the income execution or income deduction shall be submitted to the chair with copies thereof upon the claimant and his or her legal representative (if any). Any modification of payment made in compliance with an income execution or income deduction order for support enforcement issued pursuant to an order of support as defined in CPLR 5241 and CPLR 5242 shall not be grounds for imposition of a penalty under the Workers' Compensation Law, so long as the monies paid in compliance with the income execution or income deduction order are limited to those monies which would have been paid to the claimant, after payment of any liens for attorney or licensed representative fees, or for prior payment made by a disability benefits carrier, or for advance payments of compensation by an employer.
N.Y. Comp. Codes R. & Regs. Tit. 12 § 300.29