Workers' Compensation Law Summaries

Workers' Compensation Law Summaries

Kentucky, Workers' Compensation Law Summaries

Kentucky's workers' compensation law is located in the Kentucky Revised Statutes at Ch. 342.

COVERAGE

Kentucky's workers' compensation law covers all employment, including corporate executives. Coverage is elective for business owners, including qualified partners of a partnership owning a business or members of a limited liability company (Sec. 342.012). A worker may voluntarily reject coverage prior to an injury (Sec. 342.395). Coverage is compulsory for employees of the state and its political subdivisions, including elected and appointed state officials, employees of the General Assembly and volunteer fire fighters and ambulance personnel (Sec. 342.630). Employee leasing companies are covered (Sec. 342.615).

Specifically covered are newspaper carriers, operators of coal mines, members of volunteer ambulance services and fire or police department personnel. Coverage is voluntary for excluded employments (Sec. 342.640).

EXCEPTIONS

Coverage is not mandated for domestics if the employer employs fewer than two domestics working 40 hours per week. Also excepted are casual workers employed for less than 20 consecutive days, agricultural laborers, persons working for charitable or religious organizations in return for aid or sustenance and persons participating in carpools to and from work (Sec. 342.650).

Any professional athlete, coach or trainer who is hired outside of Kentucky is excluded from coverage while temporarily in the state doing work for the employer, provided that the employee is covered by out-of-state insurance that protects the employee while temporarily working in Kentucky (Sec. 342.670).

WHAT THE EMPLOYER MUST DO

Insurance choices.- Employers may self-insure (including group self-insurance), purchase insurance from a private insurance carrier (Sec. 342.340), or insure through the Kentucky Employee's Insurance Association (Sec. 342.495) or the Kentucky Mutual Insurance Authority (Sec. 342.803).

Waiting period.- Income benefits are not payable for the first seven days of disability, unless the disability last more than two weeks. If the disability lasts more than two weeks, income benefits are paid from the first day of disability (Sec. 342.040).

Reports and records.- Every employer must keep a record of all injuries received by employees in the course of their employment. Within one week after the occurrence and knowledge of an injury causing an employee to be absent from work for more than one day, the employer must report the injury to the department (Sec. 342.038).

Reports from the employer to the party responsible for payment of workers' compensation benefits are due within three working days of notification of the incident or alleged incident. Employers must report voluntary settlements to the department. Upon the termination of disability or if the disability exceeds 60 days, the employer must make a supplemental report to the commissioner (Sec. 342.038 ).

Choice of physician.- Absent an employer-designated managed health care system, employees may choose the medical care provider. Further, even if there is an employer-managed health care system in place, an injured employee may elect to continue treatment with a physician who provided emergency medical care or treatment.

Except for emergency medical care, medical services must be provided by a single treating physician or physician's group, having the authority to make referrals as reasonably necessary. The employee may make a one time change in the designated physician. To make a second or subsequent change, the employee must show reasonable cause for the change (Sec. 342.020).

Offset provisions.- If an injury or last exposure occurs before an employee's 65th birthday, any income benefits awarded must be reduced by 10% beginning at age 65 and by an additional 10% each year thereafter until and including age 70. Income benefits are not reduced further after the employee's 70th birthday.

Premium discounts.- Employers may qualfiy for a premium credit if they maintain a drugfree workplace program (Sec. 304.13-167, as amended by L. 2007, KY HB 296).

Drug and alcohol use.- An employer is not liable for compensation for an injury, occupational disease or death caused primarily by the employee's intoxication (Sec. 342.610).

NOTICE

The employer must receive written notice of an injury as soon as practicable; failure of notice is excusable (Sec. 342.185).

POSTING

Covered employers must post notices at their central offices and in all locations where employees receive wages. The notices must include: the name of the employer's workers' compensation insurance carrier; the policy number; where to go for medical treatment; how to get medical treatment; the employee's responsibility for reporting injuries; and other employee rights. The labor cabinet will develop a form for use in posting these notices. See ¶18-9900.

PENALTIES

An administrative law judge can assess 18 percent interest if the denial, delay or termination of income benefits is unreasonable (Sec. 342.040).

Any proceeding will be suspended and no compensation will be paid if an employee refuses to submit to or obstructs an examination (Sec. 342.205).

If an accident is caused by the intentional failure of the employer to comply with any specific statute or lawful administrative regulation relative to installation or maintenance of safety appliances or methods, the compensation for which the employer would otherwise be liable is increased 30 percent (Sec. 342.165).

Upon showing a certification of noncompliance, the commissioner may temporarily restrain or temporarily or permanently enjoin the operation of an employer (sec. 342.402).

CONTACTS

Office of Workers' Claims, 675 Chamberlain Avenue, Frankfurt, KY 40601, 800-554-8601.