UNOFFICIAL COPY 25 RS BR 1160
Page 1 of 60
XXXX 2/17/2025 2:52 PM Jacketed
AN ACT relating to workers' compensation. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
Section 1. KRS 342.0011 is amended to read as follows: 3
As used in this chapter, unless the context otherwise requires: 4
(1) "Injury" means any work-related traumatic event or series of traumatic events, 5
including cumulative trauma, arising out of and in the course of employment which 6
is the proximate cause producing a harmful change in the human organism 7
evidenced by objective medical findings. "Injury" does not include the effects of the 8
natural aging process, and does not include any communicable disease unless the 9
risk of contracting the disease is increased by the nature of the employment. 10
"Injury" when used generally, unless the context indicates otherwise, shall include 11
an occupational disease and damage to a prosthetic appliance, but shall not include 12
a psychological, psychiatric, or stress-related change in the human organism, unless 13
it is a direct result of a physical injury or is a diagnosis of class 2 or greater post-14
traumatic stress disorder, diagnosed under the latest version of the Diagnostic 15
and Statistical Manual of Mental Disorders and determined according to the 16
Guides to the Evaluation of Permanent Impairment, stemming from a death or 17
threatened death by direct exposure to oneself or witnessing the death, threat of 18
death, or its immediate aftermath; 19
(2) "Occupational disease" means a disease arising out of and in the course of the 20
employment; 21
(3) An occupational disease as defined in this chapter shall be deemed to arise out of 22
the employment if there is apparent to the rational mind, upon consideration of all 23
the circumstances, a causal connection between the conditions under which the 24
work is performed and the occupational disease, and which can be seen to have 25
followed as a natural incident to the work as a result of the exposure occasioned by 26
the nature of the employment and which can be fairly traced to the employment as 27 UNOFFICIAL COPY 25 RS BR 1160
Page 2 of 60
XXXX 2/17/2025 2:52 PM Jacketed
the proximate cause. The occupational disease shall be incidental to the character of 1
the business and not independent of the relationship of employer and employee. An 2
occupational disease need not have been foreseen or expected but, after its 3
contraction, it must appear to be related to a risk connected with the employment 4
and to have flowed from that source as a rational consequence; 5
(4) "Injurious exposure" shall mean that exposure to occupational hazard which would, 6
independently of any other cause whatsoever, produce or cause the disease for 7
which the claim is made; 8
(5) "Death" means death resulting from an injury or occupational disease; 9
(6) "Carrier" means any insurer, or legal representative thereof, authorized to insure the 10
liability of employers under this chapter and includes a self-insurer; 11
(7) "Self-insurer" is an employer who has been authorized under the provisions of this 12
chapter to carry his or her own liability on his or her employees covered by this 13
chapter; 14
(8) "Department" means the Department of Workers' Claims in the Education and 15
Labor Cabinet; 16
(9) "Commissioner" means the commissioner of the Department of Workers' Claims 17
under the direction and supervision of the secretary of the Education and Labor 18
Cabinet; 19
(10) "Board" means the Workers' Compensation Board; 20
(11) (a) "Temporary total disability" means the condition of an employee who has not 21
reached maximum medical improvement from an injury and has not reached a 22
level of improvement that would permit a return to employment; 23
(b) "Permanent partial disability" means the condition of an employee who, due 24
to an injury, has a permanent disability rating but retains the ability to work; 25
and 26
(c) "Permanent total disability" means the condition of an employee who, due to 27 UNOFFICIAL COPY 25 RS BR 1160
Page 3 of 60
XXXX 2/17/2025 2:52 PM Jacketed
an injury, has a permanent disability rating and has a complete and permanent 1
inability to perform any type of work as a result of an injury, except that total 2
disability shall be irrebuttably presumed to exist for an injury that results in: 3
1. Total and permanent loss of sight in both eyes; 4
2. Loss of both feet at or above the ankle; 5
3. Loss of both hands at or above the wrist; 6
4. Loss of one (1) foot at or above the ankle and the loss of one (1) hand at 7
or above the wrist; 8
5. Permanent and complete paralysis of both arms, both legs, or one (1) 9
arm and one (1) leg; 10
6. Incurable insanity or imbecility; or 11
7. Total loss of hearing; 12
(12) "Income benefits" means payments made under the provisions of this chapter to the 13
disabled worker or his or her dependents in case of death, excluding medical and 14
related benefits; 15
(13) "Medical and related benefits" means payments made for medical, hospital, burial, 16
and other services as provided in this chapter, other than income benefits; 17
(14) "Compensation" means all payments made under the provisions of this chapter 18
representing the sum of income benefits and medical and related benefits; 19
(15) "Medical services" means medical, surgical, dental, hospital, nursing, and medical 20
rehabilitation services, medicines, and fittings for artificial or prosthetic devices; 21
(16) "Person" means any individual, partnership, limited partnership, limited liability 22
company, firm, association, trust, joint venture, corporation, or legal representative 23
thereof; 24
(17) "Wages" means, in addition to money payments for services rendered, the 25
reasonable value of board, rent, housing, lodging, fuel, or similar advantages 26
received from the employer, and gratuities received in the course of employment 27 UNOFFICIAL COPY 25 RS BR 1160
Page 4 of 60
XXXX 2/17/2025 2:52 PM Jacketed
from persons other than the employer as evidenced by the employee's federal and 1
state tax returns; 2
(18) "Agriculture" means the operation of farm premises, including the planting, 3
cultivation, producing, growing, harvesting, and preparation for market of 4
agricultural or horticultural commodities thereon, the raising of livestock for food 5
products and for racing purposes, and poultry thereon, and any work performed as 6
an incident to or in conjunction with the farm operations, including the sale of 7
produce at on-site markets and the processing of produce for sale at on-site markets. 8
It shall not include the commercial processing, packing, drying, storing, or canning 9
of such commodities for market, or making cheese or butter or other dairy products 10
for market; 11
(19) "Beneficiary" means any person who is entitled to income benefits or medical and 12
related benefits under this chapter; 13
(20) "United States," when used in a geographic sense, means the several states, the 14
District of Columbia, the Commonwealth of Puerto Rico, the Canal Zone, and the 15
territories of the United States; 16
(21) "Alien" means a person who is not a citizen, a national, or a resident of the United 17
States or Canada. Any person not a citizen or national of the United States who 18
relinquishes or is about to relinquish his or her residence in the United States shall 19
be regarded as an alien; 20
(22) "Insurance carrier" means every insurance carrier or insurance company authorized 21
to do business in the Commonwealth writing workers' compensation insurance 22
coverage and includes the Kentucky Employers Mutual Insurance Authority and 23
every self-insured group operating under the provisions of this chapter; 24
(23) (a) "Severance or processing of coal" means all activities performed in the 25
Commonwealth at underground, auger, and surface mining sites; all activities 26
performed at tipple or processing plants that clean, break, size, or treat coal; 27 UNOFFICIAL COPY 25 RS BR 1160
Page 5 of 60
XXXX 2/17/2025 2:52 PM Jacketed
and all activities performed at coal loading facilities for trucks, railroads, and 1
barges. Severance or processing of coal shall not include acts performed by a 2
final consumer if the acts are performed at the site of final consumption. 3
(b) "Engaged in severance or processing of coal" shall include all individuals, 4
partnerships, limited partnerships, limited liability companies, corporations, 5
joint ventures, associations, or any other business entity in the Commonwealth 6
which has employees on its payroll who perform any of the acts stated in 7
paragraph (a) of this subsection, regardless of whether the acts are performed 8
as owner of the coal or on a contract or fee basis for the actual owner of the 9
coal. A business entity engaged in the severance or processing of coal, 10
including but not limited to administrative or selling functions, shall be 11
considered wholly engaged in the severance or processing of coal for the 12
purpose of this chapter. However, a business entity which is engaged in a 13
separate business activity not related to coal, for which a separate premium 14
charge is not made, shall be deemed to be engaged in the severance or 15
processing of coal only to the extent that the number of employees engaged in 16
the severance or processing of coal bears to the total number of employees. 17
Any employee who is involved in the business of severing or processing of 18
coal and business activities not related to coal shall be prorated based on the 19
time involved in severance or processing of coal bears to his or her total time; 20
(24) "Premium" for every self-insured group means any and all assessments levied on its 21
members by such group or contributed to it by the members thereof. For special 22
fund assessment purposes, "premium" also includes any and all membership dues, 23
fees, or other payments by members of the group to associations or other entities 24
used for underwriting, claims handling, loss control, premium audit, actuarial, or 25
other services associated with the maintenance or operation of the self-insurance 26
group; 27 UNOFFICIAL COPY 25 RS BR 1160
Page 6 of 60
XXXX 2/17/2025 2:52 PM Jacketed
(25) (a) "Premiums received" for policies effective on or after January 1, 1994, for 1
insurance companies means direct written premiums as reported in the annual 2
statement to the Department of Insurance by insurance companies, except that 3
"premiums received" includes premiums charged off or deferred, and, on 4
insurance policies or other evidence of coverage with provisions for 5
deductibles, the calculated cost for coverage, including experience 6
modification and premium surcharge or discount, prior to any reduction for 7
deductibles. The rates, factors, and methods used to calculate the cost for 8
coverage under this paragraph for insurance policies or other evidence of 9
coverage with provisions for deductibles shall be the same rates, factors, and 10
methods normally used by the insurance company in Kentucky to calculate 11
the cost for coverage for insurance policies or other evidence of coverage 12
without provisions for deductibles, except that, for insurance policies or other 13
evidence of coverage with provisions for deductibles effective on or after 14
January 1, 1995, the calculated cost for coverage shall not include any 15
schedule rating modification, debits, or credits. For policies with provisions 16
for deductibles with effective dates on or after January 1, 1995, assessments 17
shall be imposed on premiums received as calculated by the deductible 18
program adjustment. The cost for coverage calculated under this paragraph by 19
insurance companies that issue only deductible insurance policies in Kentucky 20
shall be actuarially adequate to cover the entire liability of the employer for 21
compensation under this chapter, including all expenses and allowances 22
normally used to calculate the cost for coverage. For policies with provisions 23
for deductibles with effective dates of May 6, 1993, through December 31, 24
1993, for which the insurance company did not report premiums and remit 25
special fund assessments based on the calculated cost for coverage prior to the 26
reduction for deductibles, "premiums received" includes the initial premium 27 UNOFFICIAL COPY 25 RS BR 1160
Page 7 of 60
XXXX 2/17/2025 2:52 PM Jacketed
plus any reimbursements invoiced for losses, expenses, and fees charged 1
under the deductibles. The special fund assessment rates in effect for 2
reimbursements invoiced for losses, expenses, or fees charged under the 3
deductibles shall be those percentages in effect on the effective date of the 4
insurance policy. For policies covering covered employees having a co-5
employment relationship with a professional employer organization and a 6
client as defined in KRS Chapter 336, "premiums received" means premiums 7
calculated using the experience modification factor of each client as defined 8
in KRS Chapter 336 for each covered employee for that portion of the payroll 9
pertaining to the covered employee. 10
(b) "Direct written premium" for insurance companies means the gross premium 11
written less return premiums and premiums on policies not taken but 12
including policy and membership fees. 13
(c) "Premium," for policies effective on or after January 1, 1994, for insurance 14
companies means all consideration, whether designated as premium or 15
otherwise, for workers' compensation insurance paid to an insurance company 16
or its representative, including, on insurance policies with provisions for 17
deductibles, the calculated cost for coverage, including experience 18
modification and premium surcharge or discount, prior to any reduction for 19
deductibles. The rates, factors, and methods used to calculate the cost for 20
coverage under this paragraph for insurance policies or other evidence of 21
coverage with provisions for deductibles shall be the same rates, factors, and 22
methods normally used by the insurance company in Kentucky to calculate 23
the cost for coverage for insurance policies or other evidence of coverage 24
without provisions for deductibles, except that, for insurance policies or other 25
evidence of coverage with provisions for deductibles effective on or after 26
January 1, 1995, the calculated cost for coverage shall not include any 27 UNOFFICIAL COPY 25 RS BR 1160
Page 8 of 60
XXXX 2/17/2025 2:52 PM Jacketed
schedule rating modifications, debits, or credits. For policies with provisions 1
for deductibles with effective dates on or after January 1, 1995, assessments 2
shall be imposed as calculated by the deductible program adjustment. The cost 3
for coverage calculated under this paragraph by insurance companies that 4
issue only deductible insurance policies in Kentucky shall be actuarially 5
adequate to cover the entire liability of the employer for compensation under 6
this chapter, including all expenses and allowances normally used to calculate 7
the cost for coverage. For policies with provisions for deductibles with 8
effective dates of May 6, 1993, through December 31, 1993, for which the 9
insurance company did not report premiums and remit special fund 10
assessments based on the calculated cost for coverage prior to the reduction 11
for deductibles, "premium" includes the initial consideration plus any 12
reimbursements invoiced for losses, expenses, or fees charged under the 13
deductibles. 14
(d) "Return premiums" for insurance companies means amounts returned to 15
insureds due to endorsements, retrospective adjustments, cancellations, 16
dividends, or errors. 17
(e) "Deductible program adjustment" means calculating premium and premiums 18
received on a gross basis without regard to the following: 19
1. Schedule rating modifications, debits, or credits; 20
2. Deductible credits; or 21
3. Modifications to the cost of coverage from inception through and 22
including any audit that are based on negotiated retrospective rating 23
arrangements, including but not limited to large risk alternative rating 24
options; 25
(26) "Insurance policy" for an insurance company or self-insured group means the term 26
of insurance coverage commencing from the date coverage is extended, whether a 27 UNOFFICIAL COPY 25 RS BR 1160
Page 9 of 60
XXXX 2/17/2025 2:52 PM Jacketed
new policy or a renewal, through its expiration, not to exceed the anniversary date 1
of the renewal for the following year; 2
(27) "Self-insurance year" for a self-insured group means the annual period of 3
certification of the group created pursuant to KRS 342.350(4) and 304.50-010; 4
(28) "Premium" for each employer carrying his or her own risk pursuant to KRS 5
342.340(1) shall be the projected value of the employer's workers' compensation 6
claims for the next calendar year as calculated by the commissioner using 7
generally-accepted actuarial methods as follows: 8
(a) The base period shall be the earliest three (3) calendar years of the five (5) 9
calendar years immediately preceding the calendar year for which the 10
calculation is made. The commissioner shall identify each claim of the 11
employer which has an injury date or date of last injurious exposure to the 12
cause of an occupational disease during each one (1) of the three (3) calendar 13
years to be used as the base, and shall assign a value to each claim. The value 14
shall be the total of the indemnity benefits paid to date and projected to be 15
paid, adjusted to current benefit levels, plus the medical benefits paid to date 16
and projected to be paid for the life of the claim, plus the cost of medical and 17
vocational rehabilitation paid to date and projected to be paid. Adjustment to 18
current benefit levels shall be done by multiplying the weekly indemnity 19
benefit for each claim by the number obtained by dividing the statewide 20
average weekly wage which will be in effect for the year for which the 21
premium is being calculated by the statewide average weekly wage in effect 22
during the year in which the injury or date of the last exposure occurred. The 23
total value of the claims using the adjusted weekly benefit shall then be 24
calculated by the commissioner. Values for claims in which awards have been 25
made or settlements reached because of findings of permanent partial or 26
permanent total disability shall be calculated using the mortality and interest 27 UNOFFICIAL COPY 25 RS BR 1160
Page 10 of 60
XXXX 2/17/2025 2:52 PM Jacketed
discount assumptions used in the latest available statistical plan of the 1
advisory rating organization defined in Subtitle 13 of KRS Chapter 304. The 2
sum of all calculated values shall be computed for all claims in the base 3
period; 4
(b) The commissioner shall obtain the annual payroll for each of the three (3) 5
years in the base period for each employer carrying his or her own risk from 6
records of the department and from the records of the Department of 7
Workforce Development, Education and Labor Cabinet. The commissioner 8
shall multiply each of the three (3) years of payroll by the number obtained by 9
dividing the statewide average weekly wage which will be in effect for the 10
year in which the premium is being calculated by the statewide average 11
weekly wage in effect in each of the years of the base period; 12
(c) The commissioner shall divide the total of the adjusted claim values for the 13
three (3) year base period by the total adjusted payroll for the same three (3) 14
year period. The value so calculated shall be multiplied by 1.25 and shall then 15
be multiplied by the employer's most recent annualized payroll, calculated 16
using records of the department and the Department of Workforce 17
Development data which shall be made available for this purpose on a 18
quarterly basis as reported, to obtain the premium for the next calendar year 19
for assessment purposes under KRS 342.122; 20
(d) For November 1, 1987, through December 31, 1988, premium for each 21
employer carrying its own risk shall be an amount calculated by the board 22
pursuant to the provisions contained in this subsection and such premium 23
shall be provided to each employer carrying its own risk and to the funding 24
commission on or before January 1, 1988. Thereafter, the calculations set 25
forth in this subsection shall be performed annually, at the time each employer 26
applies or renews its application for certification to carry its own risk for the 27 UNOFFICIAL COPY 25 RS BR 1160
Page 11 of 60
XXXX 2/17/2025 2:52 PM Jacketed
next twelve (12) month period and submits payroll and other data in support 1
of the application. The employer and the funding commission shall be notified 2
at the time of the certification or recertification of the premium calculated by 3
the commissioner, which shall form the employer's basis for assessments 4
pursuant to KRS 342.122 for the calendar year beginning on January 1 5
following the date of certification or recertification; 6
(e) If an employer having fewer than five (5) years of doing business in this state 7
applies to carry its own risk and is so certified, its premium for the purposes 8
of KRS 342.122 shall be based on the lesser number of years of experience as 9
may be available including the two (2) most recent years if necessary to create 10
a three (3) year base period. If the employer has less than two (2) years of 11
operation in this state available for the premium calculation, then its premium 12
shall be the greater of the value obtained by the calculation called for in this 13
subsection or the amount of security required by the commissioner pursuant to 14
KRS 342.340(1); 15
(f) If an employer is certified to carry its own risk after having previously insured 16
the risk, its premium shall be calculated using values obtained from claims 17
incurred while insured for as many of the years of the base period as may be 18
necessary to create a full three (3) year base. After the employer is certified to 19
carry its own risk and has paid all amounts due for assessments upon 20
premiums paid while insured, the employer shall be assessed only upon the 21
premium calculated under this subsection; 22
(g) "Premium" for each employer defined in KRS 342.630(2) shall be calculated 23
as set forth in this subsection; and 24
(h) Notwithstanding any other provision of this subsection, the premium of any 25
employer authorized to carry its own risk for purposes of assessments due 26
under this chapter shall be no less than thirty cents ($0.30) per one hundred 27 UNOFFICIAL COPY 25 RS BR 1160
Page 12 of 60
XXXX 2/17/2025 2:52 PM Jacketed
dollars ($100) of the employer's most recent annualized payroll for employees 1
covered by this chapter; 2
(29) "SIC code" as used in this chapter means the Standard Industrial Classification 3
Code contained in the latest edition of the Standard Industrial Classification Manual 4
published by the Federal Office of Management and Budget; 5
(30) "Investment interest" means any pecuniary or beneficial interest in a provider of 6
medical services or treatment under this chapter, other than a provider in which that 7
pecuniary or investment interest is obtained on terms equally available to the public 8
through trading on a registered national securities exchange, such as the New York 9
Stock Exchange or the American Stock Exchange, or on the National Association 10
of Securities Dealers Automated Quotation System; 11
(31) "Managed health care system" means a health care system that employs gatekeeper 12
providers, performs utilization review, and does medical bill audits; 13
(32) "Physician" means physicians and surgeons, psychologists, optometrists, dentists, 14
podiatrists, and osteopathic and chiropractic practitioners acting within the scope of 15
the license or other credentials required by his or her specialty of practice in the 16
United States jurisdiction in which he or she is authorized to practice; 17
(33) "Objective medical findings" means information gained through direct observation 18
and testing of the patient applying objective or standardized methods; 19
(34) "Work" means providing services to another in return for remuneration on a regular 20
and sustained basis in a competitive economy; 21
(35) "Permanent impairment rating" means percentage of whole body impairment 22
caused by the injury or occupational disease as determined by the ["]Guides to the 23
Evaluation of Permanent Impairment["]; 24
(36) "Permanent disability rating" means the permanent impairment rating selected by 25
an administrative law judge times the factor set forth in the table that appears at 26
KRS 342.730(1)(b);[ and] 27 UNOFFICIAL COPY 25 RS BR 1160
Page 13 of 60
XXXX 2/17/2025 2:52 PM Jacketed
(37) "Guides to the Evaluation of Permanent Impairment" means, except as provided in 1
KRS 342.262: 2
(a) The fifth edition published by the American Medical Association; and 3
(b) For psychological impairments, Chapter 12 of the second edition published by 4
the American Medical Association; and 5
(38) "Medical professional" means physicians, audiologists holding a doctorate in 6
audiology, surgeons, psychologists, optometrists, dentists, podiatrists, and 7
osteopathic and chiropractic practitioners, clinicians with a master's level degree 8
as a physician associate or physician assistant, and clinicians with a master's or 9
doctoral level degree with advanced clinical training that designates the 10
individual as a nurse practitioner authorized to practice medicine as certified by 11
any applicable board or duly licensed in any state in the United States. 12
Section 2. KRS 342.020 is amended to read as follows: 13
(1) In addition to all other compensation provided in this chapter, the employer shall 14
pay for the cure and relief from the effects of an injury or occupational disease the 15
medical, surgical, and hospital treatment, including nursing, medical, and surgical 16
supplies and appliances, as may reasonably be required at the time of the injury and 17
thereafter for the length of time set forth in this section, or as may be required for 18
the cure and treatment of an occupational disease. 19
(2) In claims resulting in an award of permanent total disability or resulting from an 20
injury described in subsection (9) of this section, the employer's obligation to pay 21
the benefits specified in this section shall continue for so long as the employee is 22
disabled regardless of the duration of the employee's income benefits. 23
(3) (a) In all permanent partial disability claims not involving an injury described in 24
subsection (9) of this section, the employer's obligation to pay the benefits 25
specified in this section shall continue for seven hundred eighty (780) weeks 26
from the date of injury or date of last exposure. 27 UNOFFICIAL COPY 25 RS BR 1160
Page 14 of 60
XXXX 2/17/2025 2:52 PM Jacketed
(b) In all permanent partial disability claims not involving an injury described in 1
subsection (9) of this section, the commissioner shall, in writing, advise the 2
employee of the right to file an application for the continuation of benefits as 3
described in this section. This notice shall be made to the employee seven 4
hundred fifty-four (754) weeks from the date of injury or last exposure. 5
(c) An employee shall receive a continuation of benefits as described in this 6
section for additional time beyond the period provided in paragraph (a) of this 7
subsection as long as continued medical treatment is reasonably necessary and 8
related to the work injury or occupational disease if: 9
1. An application is filed within seventy-five (75) days prior to the 10
termination of the seven hundred eighty (780) week period; 11
2. The employee demonstrates that continued medical treatment is 12
reasonably necessary and related to the work injury or occupational 13
disease; and 14
3. An administrative law judge determines and orders that continued 15
benefits are reasonably necessary and related to the work injury or 16
occupational disease for additional time beyond the original seven 17
hundred eighty (780) week period provided in paragraph (a) of this 18
subsection. 19
(d) 1. If the administrative law judge determines that medical benefits are not 20
reasonably necessary or not related to the work injury or occupational 21
disease, or if an employee fails to make proper application for continued 22
benefits within the time period provided in paragraph (c) of this 23
subsection, any future medical treatment shall be deemed to be unrelated 24
to the work injury and the employer's obligation to pay medical benefits 25
shall cease permanently. 26
2. In determining whether a medical benefit is reasonably necessary, the 27 UNOFFICIAL COPY 25 RS BR 1160
Page 15 of 60
XXXX 2/17/2025 2:52 PM Jacketed
administrative law judge may rely upon an objective medical opinion 1
or objective medical data in addition to the practice parameters or 2
evidence-based treatment guidelines developed or adopted by the 3
commissioner under Section 4 of this Act. When medical treatment is 4
denied by a carrier or a third-party administrator and any portion of 5
the denial is based upon the treatment guidelines developed or adopted 6
by the commissioner, the treatment guidelines being relied upon shall 7
be set forth in full in the denial and the specific guidelines shall be 8
provided in full to the employee and medical provider. 9
(4) (a) In the absence of designation of a managed health care system by the 10
employer, the employee may select medical providers to treat his or her 11
injury or occupational disease. 12
(b) Even if the employer has designated a managed health care system, the 13
injured employee may elect to continue treating with a physician who 14
provided emergency medical care or treatment to the employee. 15
(c) Except as provided by paragraph (d) of this subsection, the employer, 16
insurer, or payment obligor acting on behalf of the employer, shall make all 17
payments for services rendered to an employee directly to the provider of the 18
services within thirty (30) days of receipt of a statement for services. 19
(d) The requirement for the employer, insurer, or payment obligor to pay a 20
medical provider within thirty (30) days of receipt of the statement of 21
services does not apply until after the carrier has accepted the claim as 22
compensable or after there has been an initial determination of 23
compensability by an administrative law judge, whichever occurs first. In 24
addition, the commissioner shall promulgate administrative regulations 25
establishing conditions under which the thirty (30) day period for payment 26
may be tolled. 27 UNOFFICIAL COPY 25 RS BR 1160
Page 16 of 60
XXXX 2/17/2025 2:52 PM Jacketed
(e) Except as provided in paragraph (f) of this subsection, the provider of 1
medical services shall submit the statement for services within forty-five (45) 2
days of the day treatment is initiated and every forty-five (45) days thereafter, 3
if appropriate, as long as medical services are rendered. 4
(f) The requirement for the medical provider to submit a statement for services 5
within forty-five (45) days of when the treatment is rendered does not apply 6
until after the injured worker and the medical provider have received 7
notification from the employer, insurer, or medical payment obligor that the 8
claim has been determined to be compensable, or there has been an initial 9
determination of compensability by an administrative law judge, whichever 10
first occurs. To be effective, the notice of compensability shall advise the 11
injured worker and the medical provider of any necessary information 12
regarding the process by which and the location where statements for 13
services shall be sent.[ Except as provided in subsection (7) of this section, 14
in] 15
(g) In no event shall a medical fee exceed the limitations of an adopted medical 16
fee schedule or other limitations contained in KRS 342.035, whichever is 17
lower. 18
(h) The commissioner may promulgate administrative regulations establishing the 19
form and content of a statement for services and procedures by which disputes 20
relative to the necessity, effectiveness, frequency, and cost of services may be 21
resolved. 22
(i) If the employee prevails in a medical fee dispute, he or she shall be entitled 23
to attorney's fees not to exceed one hundred fifty dollars ($150) per hour, 24
subject to the limitations provided in Section 11 of this Act. The employee 25
may submit a bill of costs detailing any expenses to be considered by the 26
administrative law judge. 27 UNOFFICIAL COPY 25 RS BR 1160
Page 17 of 60
XXXX 2/17/2025 2:52 PM Jacketed
(5) Notwithstanding any provision of the Kentucky Revised Statutes to the contrary, 1
medical services and treatment provided under this chapter shall not be subject to 2
copayments or deductibles. 3
(6) Employers may provide medical services through a managed health care system. 4
The managed health care system shall file with the Department of Workers' Claims 5
a plan for the rendition of health care services for work-related injuries and 6
occupational diseases to be approved by the commissioner pursuant to 7
administrative regulations promulgated by the commissioner. 8
(7) All managed health care systems rendering medical services under this chapter shall 9
include the following features in plans for workers' compensation medical care: 10
(a) Copayments or deductibles shall not be required for medical services rendered 11
in connection with a work-related injury or occupational disease; 12
(b) The employee shall be allowed choice of provider within the plan; 13
(c) The managed health care system shall provide an informal procedure for the 14
expeditious resolution of disputes concerning rendition of medical services; 15
(d) The employee shall be allowed to obtain a second opinion, at the employer's 16
expense, from an outside physician if a managed health care system physician 17
recommends surgery; 18
(e) The employee may obtain medical services from providers outside the 19
managed health care system, at the employer's expense, when treatment is 20
unavailable through the managed health care system; 21
(f) The managed health care system shall establish procedures for utilization 22
review of medical services to assure that a course of treatment is reasonably 23
necessary; diagnostic procedures are not unnecessarily duplicated; the 24
frequency, scope, and duration of treatment is appropriate; pharmaceuticals 25
are not unnecessarily prescribed; and that ongoing and proposed treatment is 26
not experimental, cost ineffective, or harmful to the employee; and 27 UNOFFICIAL COPY 25 RS BR 1160
Page 18 of 60
XXXX 2/17/2025 2:52 PM Jacketed
(g) Statements for services shall be audited regularly to assure that charges are 1
not duplicated and do not exceed those authorized in the applicable fee 2
schedules. 3
(h) A schedule of fees for all medical services to be provided under this chapter 4
which shall not be subject to the limitations on medical fees contained in this 5
chapter. 6
(i) Restrictions on provider selection imposed by a managed health care system 7
authorized by this chapter shall not apply to emergency medical care. 8
(8) Except for emergency medical care, medical services rendered pursuant to this 9
chapter shall be under the supervision of a single treating physician or physicians' 10
group having the authority to make referrals, as reasonably necessary, to 11
appropriate facilities and specialists. The employee may change his or her 12
designated physician one (1) time and thereafter shall show reasonable cause in 13
order to change physicians. 14
(9) When a compensable injury or occupational disease results in the amputation or 15
partial amputation of an arm, hand, leg, or foot, or the loss of hearing, or the 16
enucleation of an eye or loss of teeth, or permanent total or permanent partial 17
paralysis, the employer shall pay for, in addition to the other medical, surgical, and 18
hospital treatment enumerated in subsection (1) and this subsection, a modern 19
artificial member and, where required, proper braces as may reasonably be required 20
at the time of the injury and thereafter during disability. 21
(10) Upon motion of the employer, with sufficient notice to the employee for a response 22
to be filed, if it is shown to the satisfaction of the administrative law judge by 23
affidavits or testimony that, because of the physician selected by the employee to 24
treat the injury or disease, or because of the hospital selected by the employee in 25
which treatment is being rendered, that the employee is not receiving proper 26
medical treatment and the recovery is being substantially affected or delayed; or 27 UNOFFICIAL COPY 25 RS BR 1160
Page 19 of 60
XXXX 2/17/2025 2:52 PM Jacketed
that the funds for medical expenses are being spent without reasonable benefit to 1
the employee; or that because of the physician selected by the employee or because 2
of the type of medical treatment being received by the employee that the employer 3
will substantially be prejudiced in any compensation proceedings resulting from the 4
employee's injury or disease; then the administrative law judge may allow the 5
employer to select a physician to treat the employee and the hospital or hospitals in 6
which the employee is treated for the injury or disease. No action shall be brought 7
against any employer subject to this chapter by any person to recover damages for 8
malpractice or improper treatment received by any employee from any physician, 9
hospital, or attendant thereof. 10
(11) An employee who reports an injury alleged to be work-related or files an 11
application for adjustment of a claim shall execute a waiver and consent of any 12
physician-patient, psychiatrist-patient, or chiropractor-patient privilege with respect 13
to any condition or complaint reasonably related to the condition for which the 14
employee claims compensation. Notwithstanding any other provision in the 15
Kentucky Revised Statutes, any physician, psychiatrist, chiropractor, podiatrist, 16
hospital, or health care provider shall, within a reasonable time after written request 17
by the employee, employer, workers' compensation insurer, special fund, uninsured 18
employers' fund, or the administrative law judge, provide the requesting party with 19
any information or written material reasonably related to any injury or disease for 20
which the employee claims compensation. 21
(12) When a provider of medical services or treatment, required by this chapter, makes 22
referrals for medical services or treatment by this chapter, to a provider or entity in 23
which the provider making the referral has an investment interest, the referring 24
provider shall disclose that investment interest to the employee, the commissioner, 25
and the employer's insurer or the party responsible for paying for the medical 26
services or treatment, within thirty (30) days from the date the referral was made. 27 UNOFFICIAL COPY 25 RS BR 1160
Page 20 of 60
XXXX 2/17/2025 2:52 PM Jacketed
(13) (a) Except as provided in paragraphs (b) and (c) of this subsection, the employer, 1
insurer, or payment obligor shall not be liable for urine drug screenings of 2
patients in excess of: 3
1. One (1) per year for a patient considered to be low-risk; 4
2. Two (2) per year for a patient considered to be moderate-risk; and 5
3. Four (4) per year for patients considered to be high-risk; 6
based upon the screening performed by the treating medical provider and 7
other pertinent factors. 8
(b) The employer, insurer, or payment obligor may be liable for urine drug 9
screening at each office visit for patients that have exhibited aberrant behavior 10
documented by multiple lost prescriptions, multiple requests for early refills 11
of prescriptions, multiple providers prescribing or dispensing opioids or 12
opioid substitutes as evidenced by the electronic monitoring system 13
established in KRS 218A.202 or a similar system, unauthorized dosage 14
escalation, or apparent intoxication. 15
(c) The employer, insurer, or payment obligor may request additional urine drug 16
screenings which shall not count toward the maximum number of drug 17
screenings enumerated in paragraph (a) of this subsection. 18
(d) The commissioner shall promulgate administrative regulations related to urine 19
drug screenings as part of the practice parameters or treatment guidelines 20
required under KRS 342.035. 21
(14) (a) As used in this subsection, "practice of pharmacy" has the same meaning as in 22
KRS 315.010. 23
(b) In addition to all other compensation that may be reimbursed to a pharmacist 24
under this chapter, the employer, insurer, or payment obligor shall be liable 25
for the reimbursement of a pharmacist for a service or procedure at a rate not 26
less than that provided to other nonphysician practitioners if the service or 27 UNOFFICIAL COPY 25 RS BR 1160
Page 21 of 60
XXXX 2/17/2025 2:52 PM Jacketed
procedure: 1
1. Is within the scope of the practice of pharmacy; 2
2. Would otherwise be compensable under this chapter if the service or 3
procedure were provided by a: 4
a. Physician; 5
b. Advanced practice registered nurse; or 6
c. Physician assistant; and 7
3. Is performed by the pharmacist in strict compliance with laws and 8
administrative regulations related to the pharmacist's license. 9
Section 3. KRS 342.033 is amended to read as follows: 10
(1) As used in this section, medical professionals shall include 11
individuals["physician" means physicians and surgeons, psychologists, 12
optometrists, dentists, podiatrists, and osteopathic and chiropractic practitioners] 13
acting within the scope of the license or other credentials required by their[his or 14
her] specialty of practice in the United States jurisdiction in which they are[he or 15
she is] authorized to practice, and any retired physicians[physician] previously 16
authorized to practice in the Commonwealth of Kentucky, who surrendered 17
their[his or her] license while in good standing with their respective licensing board 18
and was not subject to an ongoing investigation for improper practices. 19
(2) In a claim for benefits, no party may introduce direct testimony from more than two 20
(2) medical professionals[physicians] without prior consent from the administrative 21
law judge. The motion requesting additional testimony shall clearly demonstrate the 22
need for such additional testimony. A party may introduce direct testimony from a 23
medical professional[physician] through a written medical report. The report shall 24
become a part of the evidentiary record, subject to the right of an adverse party to 25
object to the admissibility of the report and to cross-examine the reporting medical 26
professional[physician]. The commissioner shall promulgate administrative 27 UNOFFICIAL COPY 25 RS BR 1160
Page 22 of 60
XXXX 2/17/2025 2:52 PM Jacketed
regulations prescribing the format and content of written medical reports. 1
Section 4. KRS 342.035 is amended to read as follows: 2
(1) Periodically, the commissioner shall promulgate administrative regulations to adopt 3
a schedule of fees for the purpose of ensuring that all fees, charges, and 4
reimbursements under KRS 342.020 and this section shall be fair, current, and 5
reasonable and shall be limited to such charges as are fair, current, and reasonable 6
for similar treatment of injured persons in the same community for like services, 7
where treatment is paid for by general health insurers. In determining what fees are 8
reasonable, the commissioner may also consider the increased security of payment 9
afforded by this chapter. On or before November 1, 1994, and on July 1 every two 10
(2) years thereafter, the schedule of fees contained in administrative regulations 11
promulgated pursuant to this section shall be reviewed and updated, if appropriate. 12
Within ten (10) days of April 4, 1994, the commissioner shall execute a contract 13
with an appropriately qualified consultant pursuant to which each of the following 14
elements within the workers' compensation system are evaluated; the methods of 15
health care delivery; quality assurance and utilization mechanisms; type, frequency, 16
and intensity of services; risk management programs; and the schedule of fees 17
contained in administrative regulation. The consultant shall present 18
recommendations based on its review to the commissioner not later than sixty (60) 19
days following execution of the contract. The commissioner shall consider these 20
recommendations and, not later than thirty (30) days after their receipt, promulgate 21
a regulation which shall be effective on an emergency basis, to effect a twenty-five 22
percent (25%) reduction in the total medical costs within the program. 23
(2) A[No] provider of medical services or treatment required by this chapter, its agent, 24
servant, employee, assignee, employer, or independent contractor acting on behalf 25
of any medical provider, shall not knowingly collect, attempt to collect, coerce, or 26
attempt to coerce, directly or indirectly, the payment of any charge, for services 27 UNOFFICIAL COPY 25 RS BR 1160
Page 23 of 60
XXXX 2/17/2025 2:52 PM Jacketed
covered by a workers' compensation insurance plan for the treatment of a work-1
related injury or occupational disease, in excess of that provided by a schedule of 2
fees, or cause the credit of any employee to be impaired by reason of the 3
employee's failure or refusal to pay the excess charge. When an administrative law 4
judge determines a statement for services is not compensable because it was 5
submitted more than forty-five (45) days after the treatment date, the medical 6
provider shall not seek payment from the employee or the employee's legal 7
counsel. In addition to the penalty imposed in KRS 342.990 for violations of this 8
subsection, any individual who sustains damages by any act in violation of the 9
provisions of this subsection shall have a civil cause of action in Circuit Court to 10
enjoin further violations and to recover the actual damages sustained by the 11
individual, together with the costs of the lawsuit, including a reasonable attorney's 12
fee. 13
(3) Where these requirements are furnished by a public hospital or other institution, 14
payment thereof shall be made to the proper authorities conducting it. No 15
compensation shall be payable for the death or disability of an employee if his or 16
her death is caused, or if and insofar as his or her disability is aggravated, caused, 17
or continued, by an unreasonable failure to submit to or follow any competent 18
surgical treatment or medical aid or advice. 19
(4) The commissioner shall, by December 1, 1994, promulgate administrative 20
regulations to adopt a schedule of fees for the purpose of regulating charges by 21
medical providers and other health care professionals for testimony presented and 22
medical reports furnished in the litigation of a claim by an injured employee against 23
the employer. The workers' compensation medical fee schedule for physicians, 803 24
KAR 25:089, having an effective date of February 9, 1995, shall remain in effect 25
until July 1, 1996, or until the effective date of any amendments promulgated by the 26
commissioner, whichever occurs first, it being determined that this administrative 27 UNOFFICIAL COPY 25 RS BR 1160
Page 24 of 60
XXXX 2/17/2025 2:52 PM Jacketed
regulation is within the statutory grant of authority, meets legislative intent, and is 1
not in conflict with the provisions of this chapter. The medical fee schedule and 2
amendments shall be fair, current, and reasonable and otherwise comply with this 3
section. 4
(5) (a) To ensure compliance with subsections (1) and (4) of this section, the 5
commissioner shall promulgate administrative regulations by December 31, 6
1994, which require each insurance carrier, self-insured group, and self-7
insured employer to certify to the commissioner the program or plan it has 8
adopted to ensure compliance. 9
(b) In addition, the commissioner shall periodically have an independent audit 10
conducted by a qualified independent person, firm, company, or other entity 11
hired by the commissioner, in accordance with the personal service contract 12
provisions contained in KRS 45A.690 to 45A.725, to ensure that the 13
requirements of subsection (1) of this section are being met. The independent 14
person, firm, company, or other entity selected by the commissioner to 15
conduct the audit shall protect the confidentiality of any information it 16
receives during the audit, shall divulge information received during the audit 17
only to the commissioner, and shall use the information for no other purpose 18
than the audit required by this paragraph. 19
(c) The commissioner shall promulgate administrative regulations governing 20
medical provider utilization review activities conducted by an insurance 21
carrier, self-insured group, or self-insured employer pursuant to this chapter. 22
Utilization review required under administrative regulations may be waived if 23
the insurance carrier, self-insured group, or self-insured employer agrees that 24
the recommended medical treatment is medically necessary and appropriate or 25
if the injured employee elects not to proceed with the recommended medical 26
treatment. 27 UNOFFICIAL COPY 25 RS BR 1160
Page 25 of 60
XXXX 2/17/2025 2:52 PM Jacketed
(d) Periodically, or upon request, the commissioner shall report to the Interim 1
Joint Committee on Economic Development and Workforce Investment of the 2
Legislative Research Commission or to the corresponding standing 3
committees of the General Assembly, as appropriate, the degree of 4
compliance or lack of compliance with the provisions of this section and make 5
recommendations thereon. 6
(e) The cost of implementing and carrying out the requirements of this subsection 7
shall be paid from funds collected pursuant to KRS 342.122. 8
(6) The commissioner may promulgate administrative regulations incorporating 9
managed care or other concepts intended to reduce costs or to speed the delivery or 10
payment of medical services to employees receiving medical and related benefits 11
under this chapter. 12
(7) For purposes of this chapter, any medical provider shall charge only its customary 13
fee for photocopying requested documents. However, in no event shall a 14
photocopying fee of a medical provider or photocopying service exceed fifty cents 15
($0.50) per page. However, a medical provider shall not charge a fee when the 16
initial copy of medical records is provided to the injured worker or his or her 17
attorney in response to a written request pursuant to KRS 422.317. In addition, 18
there shall be no charge for reviewing any records of a medical provider, during 19
regular business hours, by any party who is authorized to review the records and 20
who requests a review pursuant to this chapter. 21
(8) (a) The commissioner shall develop or adopt practice parameters or evidence-22
based treatment guidelines for medical treatment for use by medical providers 23
under this chapter, including but not limited to chronic pain management 24
treatment and opioid use, and promulgate administrative regulations in order 25
to implement the developed or adopted practice parameters or evidenced-26
based treatment guidelines on or before December 31, 2019. The 27 UNOFFICIAL COPY 25 RS BR 1160
Page 26 of 60
XXXX 2/17/2025 2:52 PM Jacketed
commissioner may adopt any parameters for medical treatment as developed 1
and updated by the federal Agency for Health Care Policy Research, or the 2
commissioner may adopt other parameters for medical treatment which are 3
developed by qualified bodies, as determined by the commissioner, with 4
periodic updating based on data collected during the application of the 5
parameters. 6
(b) The commissioner shall develop or adopt a pharmaceutical formulary for 7
medications prescribed for the cure of and relief from the effects of a work 8
injury or occupational disease and promulgate administrative regulations to 9
implement the developed or adopted pharmaceutical formulary on or before 10
December 31, 2018. 11
(c) Any provider of medical services under this chapter who has followed the 12
practice parameters or treatment guidelines or formularies developed or 13
adopted and implemented pursuant to this subsection shall be presumed to 14
have met the appropriate legal standard of care in medical malpractice cases 15
regardless of any unanticipated complication that may thereafter develop or be 16
discovered. 17
(9) (a) Notwithstanding any other provision of law to the contrary, the medical fee 18
schedule adopted under subsection (4) of this section shall require all worker's 19
compensation insurance carriers, worker's compensation self-insured groups, 20
and worker's compensation self-insured employers to provide coverage and 21
payment for surgical first assisting services to registered nurse first assistants 22
as defined in KRS 216B.015. 23
(b) The provisions of this subsection apply only if reimbursement for an assisting 24
physician would be covered and a registered nurse first assistant who 25
performed the services is used as a substitute for the assisting physician. The 26
reimbursement shall be made directly to the registered nurse first assistant if 27 UNOFFICIAL COPY 25 RS BR 1160
Page 27 of 60
XXXX 2/17/2025 2:52 PM Jacketed
the claim is submitted by a registered nurse first assistant who is not an 1
employee of the hospital or the surgeon performing the services. 2
Section 5. KRS 342.125 is amended to read as follows: 3
(1) Upon motion by any party or upon an administrative law judge's own motion, an 4
administrative law judge may reopen and review any award or order on any of the 5
following grounds: 6
(a) Fraud; 7
(b) Newly-discovered evidence which could not have been discovered with the 8
exercise of due diligence; 9
(c) Mistake;[ and] 10
(d) Change of disability as shown by objective medical evidence of worsening or 11
improvement of impairment due to a condition caused by the injury since the 12
date of the award or order; and 13
(e) Consideration of a post-award request for vocational rehabilitation 14
necessitated by the work injury or disease. 15
(2) No claim which has been previously dismissed or denied on the merits shall be 16
reopened except upon the grounds set forth in this section. 17
(3) Except for reopening solely for determination of the compensability of medical 18
expenses, fraud, entitlement to rehabilitation as set forth in KRS 342.710, or 19
conforming the award as set forth in KRS 342.730(1)(c)2., or for reducing a 20
permanent total disability award when an employee returns to work, or seeking 21
temporary total disability benefits during the period of an award, no claim shall be 22
reopened more than four (4) years following the date of the original award or 23
original order granting or denying benefits, when such an award or order becomes 24
final and nonappealable, and no party may file a motion to reopen within one (1) 25
year of any previous motion to reopen by the same party. Orders granting or 26
denying benefits that are entered subsequent to an original final award or order 27 UNOFFICIAL COPY 25 RS BR 1160
Page 28 of 60
XXXX 2/17/2025 2:52 PM Jacketed
granting or denying benefits shall not be considered to be an original order granting 1
or denying benefits under this subsection and shall not extend the time to reopen a 2
claim beyond four (4) years following the date of the final, nonappealable original 3
award or original order. 4
(4) Reopening and review under this section shall be had upon notice to the parties and 5
in the same manner as provided for an initial proceeding under this chapter. Upon 6
reopening, the administrative law judge may end, diminish, or increase 7
compensation previously awarded, within the maximum and minimum provided in 8
this chapter, or change or revoke a previous order. The administrative law judge 9
shall immediately send all parties a copy of the subsequent order or award. 10
Reopening shall not affect the previous order or award as to any sums already paid 11
thereunder, and any change in the amount of compensation shall be ordered only 12
from the date of filing the motion to reopen. No employer shall suspend benefits 13
during pendency of any reopening procedures except upon order of the 14
administrative law judge. 15
(5) (a) Upon the application of the affected employee, and a showing of progression 16
of his or her previously-diagnosed occupational pneumoconiosis resulting 17
from exposure to coal dust and development of respiratory impairment due to 18
that pneumoconiosis and two (2) additional years of employment in the 19
Commonwealth wherein the employee was continuously exposed to the 20
hazards of the disease, the administrative law judge may review an award or 21
order for benefits attributable to coal-related pneumoconiosis under KRS 22
342.732. An application for review under this subsection shall be made within 23
one (1) year of the date the employee knew or reasonably should have known 24
that a progression of his or her disease and development or progression of 25
respiratory impairment have occurred. Review under this subsection shall 26
include a review of all evidence admitted in all prior proceedings. 27 UNOFFICIAL COPY 25 RS BR 1160
Page 29 of 60
XXXX 2/17/2025 2:52 PM Jacketed
(b) Benefits awarded as a result of a review under this subsection shall be reduced 1
by the amount of retraining incentive benefits or income benefits previously 2
awarded under KRS 342.732. The amount to be deducted shall be subtracted 3
from the total amount awarded, and the remaining amount shall be divided by 4
the number of weeks, for which the award was made, to arrive at the weekly 5
benefit amount which shall be apportioned in accordance with the provisions 6
of KRS 342.316. 7
(6) In a reopening or review proceeding where there has been additional permanent 8
partial disability awarded, the increase shall not extend the original period, unless 9
the combined prior disability and increased disability exceeds fifty percent (50%), 10
but less than one hundred percent (100%), in which event the awarded period shall 11
not exceed five hundred twenty (520) weeks, from commencement date of the 12
original disability previously awarded. The law in effect on the date of the original 13
injury controls the rights of the parties. 14
(7) Where an agreement has become an award by approval of the administrative law 15
judge, and a reopening and review of that award is initiated, no statement contained 16
in the agreement, whether as to jurisdiction, liability of the employer, nature and 17
extent of disability, or as to any other matter, shall be considered by the 18
administrative law judge as an admission against the interests of any party. The 19
parties may raise any issue upon reopening and review of this type of award which 20
could have been considered upon an original application for benefits. 21
(8) The time limitation prescribed in this section shall apply to all claims irrespective of 22
when they were incurred, or when the award was entered, or the settlement 23
approved. However, claims decided prior to December 12, 1996, may be reopened 24
within four (4) years of the award or order or within four (4) years of December 12, 25
1996, whichever is later, provided that the exceptions to reopening established in 26
subsections (1) and (3) of this section shall apply to these claims as well. 27 UNOFFICIAL COPY 25 RS BR 1160
Page 30 of 60
XXXX 2/17/2025 2:52 PM Jacketed
Section 6. KRS 342.276 is amended to read as follows: 1
(1) The commissioner shall establish a program to provide an opportunity for 2
mediation of disputes as to the entitlement to benefits under this chapter. 3
(2) The commissioner shall promulgate administrative regulations in accordance with 4
KRS Chapter 13A necessary to establish and implement the mediation program, 5
which shall: 6
(a) Prescribe[ prescribe] the qualifications and duties of mediators; 7
(b) Establish a process for the designation of mediators; 8
(c) Establish procedures for the conduct of mediation proceedings; 9
(d) Establish[ and] the issues which shall be subject to mediation; and 10
(e) Require a statement of the party or parties seeking mediation for the 11
resolution of contested issues that at least one (1) prior attempt has been 12
made to reach a settlement prior to mediation. 13
(3) Recommendations by mediators are without administrative or judicial authority and 14
are not binding on the parties unless the parties enter into a settlement agreement 15
incorporating the recommendations. Administrative law judges may participate in 16
the mediation process but shall not issue findings or orders as a result of the process 17
unless agreed to by the parties. 18
Section 7. KRS 342.281 is amended to read as follows: 19
Within fourteen (14) days from the date of the award, order, or decision any party may 20
file a petition for reconsideration of the award, order, or decision of the administrative 21
law judge. The petition for reconsideration shall clearly set out the errors relied upon with 22
the reasons and argument for reconsideration of the pending award, order, or decision. 23
All other parties shall have ten (10) days thereafter to file a response to the petition. The 24
administrative law judge shall be limited in the review to the correction of errors patently 25
appearing upon the face of the award, order, or decision and shall overrule the petition for 26
reconsideration or make any correction within ten (10) days after submission. After an 27 UNOFFICIAL COPY 25 RS BR 1160
Page 31 of 60
XXXX 2/17/2025 2:52 PM Jacketed
order on reconsideration has been rendered, subsequent petitions for reconsideration 1
shall not toll or extend the time to file an appeal unless the subsequent petition for 2
reconsideration is filed to correct a patent error in the order. 3
Section 8. KRS 342.310 is amended to read as follows: 4
(1) If any administrative law judge, the board, or any court before whom any 5
proceedings are brought under this chapter determines that such proceedings have 6
been brought, prosecuted, or defended without reasonable ground, he, she or it may 7
assess the whole cost of the proceedings which shall include actual expenses but not 8
be limited to the following: court costs, travel expenses, deposition costs, physician 9
expenses for attendance fees at depositions, attorney fees, and all other out-of-10
pocket expenses upon the party who has so brought, prosecuted, or defended them. 11
(2) If any administrative law judge, the board, or any court before whom any 12
proceedings are brought under this chapter determines that a party has committed 13
acts in violation of KRS 342.335(1) or (2), that party may be ordered to make 14
restitution for any compensation paid as a result of the commission of such acts. 15
(3) If an administrative law judge determines a medical dispute was filed frivolously 16
or for the purpose of harassment by an employer, its third-party administrator, or 17
the responsible insurer, in addition to the attorney's fees in subsection (4)(i) 18
Section 2 of this Act, the administrative law judge may fine the employer an 19
amount not less than one thousand dollars ($1,000) and not more than five 20
thousand dollars ($5,000) to be paid to the employee. 21
Section 9. KRS 342.315 is amended to read as follows: 22
(1) (a) For workers who have had injuries or occupational hearing loss, the 23
commissioner shall contract with the University of Kentucky,[ and] the 24
University of Louisville, and the University of Pikeville medical schools to 25
evaluate workers. For workers who have become affected by occupational 26
hearing loss, audiologists holding a doctorate in audiology affiliated with 27 UNOFFICIAL COPY 25 RS BR 1160
Page 32 of 60
XXXX 2/17/2025 2:52 PM Jacketed
the University of Kentucky, the University of Louisville, or the University of 1
Pikeville medical schools may perform hearing loss evaluations. For 2
workers who have become affected by occupational diseases, the 3
commissioner shall contract with the University of Kentucky,[ and] the 4
University of Louisville, and the University of Pikeville medical schools. 5
(b) In cases alleging coal workers' pneumoconiosis, in addition to the medical 6
schools listed in this subsection, the commissioner may contract with 7
medical professionals who are[, or other physicians otherwise] duly qualified 8
as "B" readers[ who are licensed in the Commonwealth] and who are board-9
certified pulmonary specialists. 10
(c) Referral for evaluation may be made whenever a medical question is at issue. 11
Medical professionals affiliated with the University of Kentucky, the 12
University of Louisville, or the University of Pikeville medical schools may 13
perform the evaluations. 14
(2) The medical professionals[physicians] and institutions performing evaluations 15
pursuant to this section shall render reports encompassing their findings and 16
opinions in the form prescribed by the commissioner. Except as otherwise provided 17
in KRS 342.316, the clinical findings and opinions of the designated evaluator shall 18
be afforded presumptive weight by administrative law judges and the burden to 19
overcome such findings and opinions shall fall on the opponent of that evidence. 20
When administrative law judges reject the clinical findings and opinions of the 21
designated evaluator, they shall specifically state in the order the reasons for 22
rejecting that evidence. 23
(3) The commissioner or an administrative law judge may, upon the application of any 24
party or upon his or her own motion, direct appointment by the commissioner, 25
pursuant to subsection (1) of this section, of an[a medical] evaluator to make any 26
necessary medical examination of the employee. The[Such medical] evaluator shall 27 UNOFFICIAL COPY 25 RS BR 1160
Page 33 of 60
XXXX 2/17/2025 2:52 PM Jacketed
file with the commissioner within fifteen (15) days after such examination a written 1
report. The appointed evaluator[medical evaluator appointed] may charge a 2
reasonable fee not exceeding fees established by the commissioner for those 3
services. 4
(4) Within thirty (30) days of the receipt of a statement for the evaluation, the employer 5
or carrier shall pay the cost of the examination. Upon notice from the commissioner 6
that an evaluation has been scheduled, the insurance carrier shall forward within 7
seven (7) days to the employee the expenses of travel necessary to attend the 8
evaluation at a rate equal to that paid to state employees for travel by private 9
automobile while conducting state business. 10
(5) Upon claims in which it is finally determined that the injured worker was not the 11
employee at the time of injury of an employer covered by this chapter, the special 12
fund shall reimburse the carrier for any evaluation performed pursuant to this 13
section for which the carrier has been erroneously compelled to make payment. 14
(6) Not less often than annually the designee of the secretary of the Cabinet for Health 15
and Family Services shall assess the performance of the medical schools and render 16
findings as to whether evaluations conducted under this section are being rendered 17
in a timely manner, whether examinations are conducted in accordance with 18
medically recognized techniques, whether impairment ratings are in conformity 19
with standards prescribed by the "Guides to the Evaluation of Permanent 20
Impairment," and whether coal workers' pneumoconiosis examinations are 21
conducted in accordance with the standards prescribed in this chapter. 22
(7) The General Assembly finds that good public policy mandates the realization of the 23
potential advantages, both economic and effectual, of the use of telehealth. The 24
commissioner may, to the extent that he or she finds it feasible and appropriate, 25
require the use of telehealth, as defined in KRS 211.332, in the independent medical 26
evaluation process required by this chapter. 27 UNOFFICIAL COPY 25 RS BR 1160
Page 34 of 60
XXXX 2/17/2025 2:52 PM Jacketed
Section 10. KRS 342.316 is amended to read as follows: 1
(1) (a) The employer liable for compensation for occupational disease shall be the 2
employer in whose employment the employee was last exposed to the hazard 3
of the occupational disease. During any period in which this section is 4
applicable to a coal mine, an operator who acquired it or substantially all of its 5
assets from a person who was its operator on and after January 1, 1973, shall 6
be liable for, and secure the payment of, the benefits which would have been 7
payable by the prior operator under this section with respect to miners 8
previously employed in the mine if it had not been acquired by such later 9
operator. At the same time, however, this subsection does not relieve the prior 10
operator of any liability under this section. Also, it does not affect whatever 11
rights the later operator might have against the prior operator. 12
(b) The time of the beginning of compensation payments shall be the date of the 13
employee's last injurious exposure to the cause of the disease, or the date of 14
actual disability, whichever is later. 15
(2) The procedure with respect to the giving of notice and determination of claims in 16
occupational disease cases and the compensation and medical benefits payable for 17
disability or death due to the disease shall be the same as in cases of accidental 18
injury or death under the general provisions of this chapter, except that notice of 19
claim shall be given to the employer as soon as practicable after the employee first 20
experiences a distinct manifestation of an occupational disease in the form of 21
symptoms reasonably sufficient to apprise the employee that he or she has 22
contracted the disease, or a diagnosis of the disease is first communicated to him or 23
her, whichever shall first occur. 24
(3) The procedure for filing occupational disease claims shall be as follows: 25
(a) The application for resolution of claim shall set forth the complete work 26
history of the employee with a concise description of injurious exposure to a 27 UNOFFICIAL COPY 25 RS BR 1160
Page 35 of 60
XXXX 2/17/2025 2:52 PM Jacketed
specific occupational disease, together with the name and addresses of the 1
employer or employers with the approximate dates of employment. The 2
application shall also include at least one (1) written medical report 3
supporting his or her claim. This medical report shall be made on the basis of 4
clinical or X-ray examination performed in accordance with accepted medical 5
standards and shall contain full and complete statements of all examinations 6
performed and the results thereof. The report shall be made by a duly-licensed 7
medical professional[physician]. The commissioner shall promulgate 8
administrative regulations which prescribe the format of the medical report 9
required by this section and the manner in which the report shall be 10
completed. 11
1. For coal-related occupational pneumoconiosis claims, each clinical 12
examination shall include a chest X-ray interpretation by a National 13
Institute of Occupational Safety and Health (NIOSH) certified "B" 14
reader. The chest X-ray upon which the report is made shall be filed 15
with the application as well as spirometric tests when pulmonary 16
dysfunction is alleged. 17
2. For other compensable occupational pneumoconiosis claims, each 18
clinical examination shall include a chest X-ray examination and 19
appropriate pulmonary function tests. 20
(b) To be admissible, medical evidence offered in any proceeding under this 21
chapter for determining a claim for occupational pneumoconiosis resulting 22
from exposure to coal dust shall comply with accepted medical standards as 23
follows: 24
1. Chest X-rays shall be of acceptable quality with respect to exposure and 25
development and shall be indelibly labeled with the date of the X-ray 26
and the name and Social Security number of the claimant. Reports by 27 UNOFFICIAL COPY 25 RS BR 1160
Page 36 of 60
XXXX 2/17/2025 2:52 PM Jacketed
medical professionals[Physicians' reports] of X-ray interpretations 1
shall: 2
a. Identify[ identify] the claimant by name and Social Security 3
number; 4
b. Include[ include] the date of the X-ray and the date of the report; 5
and 6
c. Classify[ classify] the X-ray interpretation using the latest ILO 7
Classification and be accompanied by a completed copy of the 8
latest ILO Classification report. 9
Only interpretations by National Institute of Occupational Safety and 10
Health (NIOSH) certified "B" readers shall be admissible. 11
2. Spirometric testing shall be conducted in accordance with the standards 12
recommended in the "Guides to the Evaluation of Permanent 13
Impairment" and the 1978 ATS epidemiology standardization project 14
with the exception that the predicted normal values for lung function 15
shall not be adjusted based upon the race of the subject. The FVC or the 16
FEV1 values shall represent the largest of such values obtained from 17
three (3) acceptable forced expiratory volume maneuvers as corrected to 18
BTPS (body temperature, ambient pressure and saturated with water 19
vapor at these conditions) and the variance between the two (2) largest 20
acceptable FVC values shall be either less than five percent (5%) of the 21
largest FVC value or less than one hundred (100) milliliters, whichever 22
is greater. The variance between the two (2) largest acceptable FEV1 23
values shall be either less than five percent (5%) of the largest FEV1 24
value or less than one hundred (100) milliliters, whichever is greater. 25
Reports of spirometric testing shall include a description by the 26
physician of the procedures utilized in conducting such spirometric 27 UNOFFICIAL COPY 25 RS BR 1160
Page 37 of 60
XXXX 2/17/2025 2:52 PM Jacketed
testing and a copy of the spirometric chart and tracings from which 1
spirometric values submitted as evidence were taken. If it is shown that 2
the spirometric testing is not valid due to inadequate cooperation or poor 3
effort on the part of the claimant, the claimant's right to take or 4
prosecute any proceedings under this chapter shall be suspended until 5
the refusal or obstruction ceases. No compensation shall be payable for 6
the period during which the refusal or obstruction continues. 7
3. The commissioner shall promulgate administrative regulations pursuant 8
to KRS Chapter 13A as necessary to effectuate the purposes of this 9
section. The commissioner shall periodically review the applicability of 10
the spirometric test values contained in the "Guides to the Evaluation of 11
Permanent Impairment" and may by administrative regulation substitute 12
other spirometric test values which are found to be more closely 13
representative of the normal pulmonary function of the coal mining 14
population. 15
4. The procedure for determination of occupational disease claims shall be 16
as follows: 17
a. Immediately upon receipt of an application for resolution of claim, 18
the commissioner shall notify the responsible employer and all 19
other interested parties and shall furnish them with a full and 20
complete copy of the application. 21
b. The commissioner shall assign the claim to an administrative law 22
judge and shall promptly refer the employee to a duly qualified 23
medical professional who is board certified in the area 24
concerning the alleged occupational disease, and in the case of 25
claims for coal workers' pneumoconiosis to a medical 26
professional duly who is qualified as a "B" reader[ physician who 27 UNOFFICIAL COPY 25 RS BR 1160
Page 38 of 60
XXXX 2/17/2025 2:52 PM Jacketed
is licensed in the Commonwealth] and who is a board-certified 1
pulmonary specialist as set forth pursuant to KRS 342.315 and 2
342.794(1). The report from this examination shall be provided to 3
all parties of record. The employee shall not be referred by the 4
commissioner for examination within two (2) years following any 5
prior referral for examination for the same disease. 6
c. The commissioner shall develop a procedure to annually audit the 7
performance of medical professionals[physicians] and facilities 8
that are selected to perform examinations pursuant to this section. 9
The audit shall include an evaluation of the medical 10
professional[physician] and facility with respect to the timeliness 11
and completeness of the reports and the frequency at which the 12
medical professional's[physician's] classification of an X-ray 13
differs from those of the other medical professionals[physicians] 14
of that X-ray. The commissioner shall remove a medical 15
professional[physician] or facility from selection consideration if 16
the medical professional[physician] or facility consistently 17
renders incomplete or untimely reports or if the X-ray[physician's] 18
interpretations[ of X-rays] are not in conformity with the readings 19
of other medical professionals[physicians] of record at least fifty 20
percent (50%) of the time. The report required under this 21
subdivision shall be provided to the Interim Joint Committee on 22
Economic Development and Workforce Investment on or before 23
July 1, 2019, and on or before July 1 of each year thereafter. 24
d. In coal workers' pneumoconiosis claims, if the medical 25
professional[physician] selected by the commissioner interprets an 26
X-ray as positive for complicated coal workers' pneumoconiosis, 27 UNOFFICIAL COPY 25 RS BR 1160
Page 39 of 60
XXXX 2/17/2025 2:52 PM Jacketed
the commissioner shall refer the employee to the facility at which 1
the claimant was previously evaluated for a computerized 2
tomography scan in order to verify the findings. The computerized 3
tomography scan shall be interpreted by the facility and a report 4
shall be filed with the commissioner. The employer, insurer, or 5
payment obligor shall pay the cost of the examination pursuant to 6
the medical fee schedule. The administrative law judge may rely 7
upon the findings in the report in accepting or rejecting ILO 8
radiographic evidence of the disease required under KRS 342.732 9
for benefit determination. 10
e. Within forty-five (45) days following the notice of filing an 11
application for resolution of claim, the employer or carrier shall 12
notify the commissioner and all parties of record of its acceptance 13
or denial of the claim. A denial shall be in writing and shall state 14
the specific basis for the denial. 15
f. The administrative law judge shall conduct such proceedings as 16
are necessary to resolve the claim and shall have authority to grant 17
or deny any relief, including interlocutory relief, to order 18
additional proof, to conduct a benefit review conference, or to take 19
such other action as may be appropriate to resolve the claim. 20
g. Unless a voluntary settlement is reached by the parties, or the 21
parties agree otherwise, the administrative law judge shall issue a 22
written determination within sixty (60) days following a hearing. 23
The written determination shall address all contested issues and 24
shall be enforceable under KRS 342.305. 25
h. Within thirty (30) days of the receipt of the statement for the 26
evaluation, the employer, insurer, or payment obligor shall pay the 27 UNOFFICIAL COPY 25 RS BR 1160
Page 40 of 60
XXXX 2/17/2025 2:52 PM Jacketed
cost of the examination. Upon notice from the commissioner that 1
an evaluation has been scheduled, the employer, insurer, or 2
payment obligor shall forward the expenses of travel necessary to 3
attend the evaluation at the state employee reimbursement rates to 4
the employee within seven (7) days. However, if the employee has 5
alleged a pulmonary dysfunction but has not filed spirometric 6
evidence as required by paragraph (a) of this subsection at the time 7
the evaluation is scheduled by the commissioner, the employee 8
will be responsible for fifty percent (50%) of the cost of the 9
evaluation. 10
5. The procedure for appeal from a determination of an administrative law 11
judge shall be as set forth in KRS 342.285. 12
(4) (a) The right to compensation under this chapter resulting from an occupational 13
disease shall be forever barred unless a claim is filed with the commissioner 14
within three (3) years after the last injurious exposure to the occupational 15
hazard or after the employee first experiences a distinct manifestation of an 16
occupational disease in the form of symptoms reasonably sufficient to apprise 17
the employee that he or she has contracted the disease, whichever shall last 18
occur; and if death results from the occupational disease within that period, 19
unless a claim therefor be filed with the commissioner within three (3) years 20
after the death; but that notice of claim shall be deemed waived in case of 21
disability or death where the employer, or its insurance carrier, voluntarily 22
makes payment therefor, or if the incurrence of the disease or the death of the 23
employee and its cause was known to the employer. However, the right to 24
compensation for any occupational disease shall be forever barred, unless a 25
claim is filed with the commissioner within five (5) years from the last 26
injurious exposure to the occupational hazard, except that, in cases of 27 UNOFFICIAL COPY 25 RS BR 1160
Page 41 of 60
XXXX 2/17/2025 2:52 PM Jacketed
radiation disease, asbestos-related disease, or a type of cancer specified in 1
KRS 61.315(11)(b), a claim must be filed within twenty (20) years from the 2
last injurious exposure to the occupational hazard. 3
(b) Income benefits for the disease of pneumoconiosis resulting from exposure to 4
coal dust or death therefrom shall not be payable unless the employee has 5
been exposed to the hazards of such pneumoconiosis in the Commonwealth of 6
Kentucky over a continuous period of not less than two (2) years during the 7
ten (10) years immediately preceding the date of his or her last exposure to 8
such hazard, or for any five (5) of the fifteen (15) years immediately 9
preceding the date of such last exposure. 10
(5) The amount of compensation payable for disability due to occupational disease or 11
for death from the disease, and the time and manner of its payment, shall be as 12
provided for under the general provisions of the Workers' Compensation Act, but: 13
(a) In no event shall the payment exceed the amounts that were in effect at the 14
time of the last injurious exposure; 15
(b) The time of the beginning of compensation payments shall be the date of the 16
employee's last injurious exposure to the cause of the disease, or the date of 17
actual disability, whichever is later; and 18
(c) In case of death where the employee has been awarded compensation or made 19
timely claim within the period provided for in this section, and an employee 20
has suffered continuous disability to the date of his or her death occurring at 21
any time within twenty (20) years from the date of disability, his or her 22
dependents, if any, shall be awarded compensation for his or her death as 23
provided for under the general provisions of the Workers' Compensation Act 24
and in this section, except as provided in KRS 342.750(6). 25
(6) If an autopsy has been performed, no testimony relative thereto shall be admitted 26
unless the employer or its representative has available findings and reports of the 27 UNOFFICIAL COPY 25 RS BR 1160
Page 42 of 60
XXXX 2/17/2025 2:52 PM Jacketed
pathologist or doctor who performed the autopsy examination. 1
(7) No compensation shall be payable for occupational disease if the employee at the 2
time of entering the employment of the employer by whom compensation would 3
otherwise be payable, falsely represented himself or herself, in writing, as not 4
having been previously disabled, laid-off, or compensated in damages or otherwise, 5
because of the occupational disease, or failed or omitted truthfully to state to the 6
best of his or her knowledge, in answer to written inquiry made by the employer, 7
the place, duration, and nature of previous employment, or, to the best of his or her 8
knowledge, the previous state of his or her health. 9
(8) No compensation for death from occupational disease shall be payable to any 10
person whose relationship to the deceased, which under the provisions of this 11
chapter would give right to compensation, arose subsequent to the beginning of the 12
first compensable disability, except only for after-born children of a marriage 13
existing at the beginning of such disability. 14
(9) Whenever any claimant misconceives his or her remedy and files an application for 15
adjustment of claim under the general provisions of this chapter and it is 16
subsequently discovered, at any time before the final disposition of the cause, that 17
the claim for injury, disability, or death which was the basis for his or her 18
application should properly have been made under the provisions of this section, 19
then the application so filed may be amended in form or substance, or both, to 20
assert a claim for injury, disability, or death under the provisions of this section, and 21
it shall be deemed to have been so filed as amended on the date of the original filing 22
thereof, and compensation may be awarded that is warranted by the whole evidence 23
pursuant to the provisions of this chapter. When amendment of this type is 24
submitted, further or additional evidence may be heard when deemed necessary. 25
Nothing this section contains shall be construed to be or permit a waiver of any of 26
the provisions of this chapter with reference to notice of time for filing of a claim, 27 UNOFFICIAL COPY 25 RS BR 1160
Page 43 of 60
XXXX 2/17/2025 2:52 PM Jacketed
but notice of filing a claim, if given or done, shall be deemed to be a notice of filing 1
of a claim under provisions of this chapter, if given or done within the time required 2
by this subsection. 3
(10) When an employee has an occupational disease that is covered by this chapter, the 4
employer in whose employment he or she was last injuriously exposed to the hazard 5
of the disease, and the employer's insurance carrier, if any, at the time of the 6
exposure, shall alone be liable therefor, without right to contribution from any prior 7
employer or insurance carrier, except as otherwise provided in this chapter. 8
(11) (a) For claims filed on or before June 30, 2017, income benefits for coal-related 9
occupational pneumoconiosis shall be paid fifty percent (50%) by the 10
Kentucky coal workers' pneumoconiosis fund as established in KRS 342.1242 11
and fifty percent (50%) by the employer in whose employment the employee 12
was last exposed to the hazard of that occupational disease. 13
(b) Income benefits for coal-related occupational pneumoconiosis for claims filed 14
after June 30, 2017, shall be paid by the employer in whose employment the 15
employee was last exposed to the hazards of coal workers' pneumoconiosis. 16
(c) Compensation for all other occupational disease shall be paid by the employer 17
in whose employment the employee was last exposed to the hazards of the 18
occupational disease. 19
(12) A concluded claim for benefits by reason of contraction of coal workers' 20
pneumoconiosis in the severance or processing of coal shall bar any subsequent 21
claim for benefits by reason of contraction of coal workers' pneumoconiosis, unless 22
there has occurred in the interim between the conclusion of the first claim and the 23
filing of the second claim at least two (2) years of employment wherein the 24
employee was continuously exposed to the hazards of the disease in the 25
Commonwealth. 26
Section 11. KRS 342.320 is amended to read as follows: 27 UNOFFICIAL COPY 25 RS BR 1160
Page 44 of 60
XXXX 2/17/2025 2:52 PM Jacketed
(1) All fees of attorneys and medical professionals[physicians], and all charges of 1
hospitals under this chapter, shall be subject to the approval of an administrative 2
law judge pursuant to the statutes and administrative regulations. 3
(2) In an original claim, attorney's fees for services under this chapter on behalf of an 4
employee shall be subject to the following maximum limits: 5
(a) For attorney-client employment contracts entered into and signed after July 6
14, 2000, but before July 14, 2018, twenty percent (20%) of the first twenty-7
five thousand dollars ($25,000) of the award, fifteen percent (15%) of the next 8
ten thousand dollars ($10,000), and five percent (5%) of the remainder of the 9
award, not to exceed a maximum fee of twelve thousand dollars ($12,000). 10
This fee shall be paid by the employee from the proceeds of the award or 11
settlement; and 12
(b) For attorney-client employment contracts entered into and signed on or after 13
July 14, 2018, twenty percent (20%) of the first twenty-five thousand dollars 14
($25,000) of the award, fifteen percent (15%) of the next twenty-five 15
thousand dollars ($25,000), and ten percent (10%) of the remainder of the 16
award, not to exceed a maximum fee of eighteen thousand dollars ($18,000). 17
This fee shall be paid by the employee from the proceeds of the award or 18
settlement. 19
(3) In approving an allowance of attorney's fees, the administrative law judge shall 20
consider the extent, complexity, and quality of services rendered, and in the case of 21
death, the Remarriage Tables of the Dutch Royal Insurance Institute. An attorney's 22
fee may be denied or reduced upon proof of solicitation by the attorney. However, 23
this provision shall not be construed to preclude advertising in conformity with 24
standards prescribed by the Kentucky Supreme Court. 25
(4) No attorney's fee in any case involving benefits under this chapter shall be paid 26
until the fee is approved by the administrative law judge, and any contract for the 27 UNOFFICIAL COPY 25 RS BR 1160
Page 45 of 60
XXXX 2/17/2025 2:52 PM Jacketed
payment of attorney's fees otherwise than as provided in this section shall be void. 1
The motion for approval of an attorney's fee shall be submitted within thirty (30) 2
days following finality of the claim. Except when the attorney's fee is to be paid by 3
the employer or carrier, the attorney's fee shall be paid in one (1) of the following 4
ways: 5
(a) The employee may pay the attorney's fee out of his or her personal funds or 6
from the proceeds of a lump-sum settlement; or 7
(b) The administrative law judge, upon request of the employee, may order the 8
payment of the attorney's fee in a lump sum directly to the attorney of record 9
and deduct the attorney's fee from the weekly benefits payable to the 10
employee in equal installments over the duration of the award or until the 11
attorney's fee has been paid, commuting sufficient sums to pay the fee. 12
(5) At the commencement of the attorney-client relationship, the attorney shall explain 13
to the employee the methods by which this section provides for the payment of the 14
attorney's fee, and the employee shall select the method in which the attorney's fee 15
is to be paid. His or her selection and statement that he or she fully understands the 16
method to be used shall be submitted by his or her attorney, on a notarized form 17
signed by the employee, at the time the motion for approval of the attorney's fee is 18
submitted. The commissioner shall develop the format and content of the form to be 19
used pursuant to this section. The form to be used shall list on its face all options 20
permitted in this section for the payment of an attorney's fees and contain an 21
explanation in nontechnical language of each method. 22
(6) In a claim that has been reopened pursuant to the provisions of this chapter, an 23
attorney's fee may be awarded by the administrative law judge subject to the limits 24
set forth in subsection (2) of this section. In awarding the attorney's fee, the 25
administrative law judge shall consider the factors set forth in subsection (3) of this 26
section. If no additional amount is recovered upon reopening, no attorney's fee shall 27 UNOFFICIAL COPY 25 RS BR 1160
Page 46 of 60
XXXX 2/17/2025 2:52 PM Jacketed
be awarded. No attorney's fee shall be allowed or approved exceeding the amounts 1
provided in subsection (2)(a) of this section applicable to any additional amount 2
recovered. 3
(7) Attorney's fees for representing employers in proceedings under this chapter 4
pursuant to contract with the employer shall be subject to approval of the 5
administrative law judge in the same manner as prescribed for attorney 6
representation of employees. Employer attorney's fees are subject to the limitation 7
of eighteen thousand dollars ($18,000) maximum fees except that fees for 8
representing employers shall not be dependent upon the result achieved. Employer 9
attorney's fees may be paid on a periodic basis while a claim is adjudicated and the 10
payments need not be approved until the claims resolution process is completed. All 11
such approved fees shall be paid by the employer and in no event shall exceed the 12
amount the employer agreed by contract to pay. 13
(8) The commissioner shall promulgate administrative regulations in accordance 14
with KRS Chapter 13A establishing a schedule of fees that may be charged by 15
court reporters for services rendered pursuant to KRS Chapter 342. 16
Section 12. KRS 342.730 is amended to read as follows: 17
(1) Except as provided in KRS 342.732, income benefits for disability shall be paid to 18
the employee as follows: 19
(a) For temporary or permanent total disability, sixty-six and two-thirds percent 20
(66-2/3%) of the employee's average weekly wage but not more than one 21
hundred ten percent (110%) of the state average weekly wage and not less 22
than twenty percent (20%) of the state average weekly wage as determined in 23
KRS 342.740 during that disability. Nonwork-related impairment and 24
conditions compensable under KRS 342.732 and hearing loss covered in KRS 25
342.7305 shall not be considered in determining whether the employee is 26
totally disabled for purposes of this subsection. 27 UNOFFICIAL COPY 25 RS BR 1160
Page 47 of 60
XXXX 2/17/2025 2:52 PM Jacketed
(b) For permanent partial disability, sixty-six and two-thirds percent (66-2/3%) of 1
the employee's average weekly wage but not more than eighty-two and one-2
half percent (82.5%) of the state average weekly wage as determined by KRS 3
342.740, multiplied by the permanent impairment rating caused by the injury 4
or occupational disease as determined by the "Guides to the Evaluation of 5
Permanent Impairment," times the factor set forth in the table that follows: 6
AMA Impairment Factor 7
0 to 5% 0.65 8
6 to 10% 0.85 9
11 to 15% 1.00 10
16 to 20% 1.00 11
21 to 25% 1.15 12
26 to 30% 1.35 13
31 to 35% 1.50 14
36% and above 1.70 15
Any temporary total disability period within the maximum period for 16
permanent, partial disability benefits shall extend the maximum period but 17
shall not make payable a weekly benefit exceeding that determined in 18
subsection (1)(a) of this section. Notwithstanding any section of this chapter 19
to the contrary, there shall be no minimum weekly income benefit for 20
permanent partial disability and medical benefits shall be paid for the duration 21
of the disability. 22
(c) 1. If, due to an injury, an employee does not retain the physical capacity to 23
return to the type of work that the employee performed at the time of 24
injury, the benefit for permanent partial disability shall be multiplied by 25
three (3) times the amount otherwise determined under paragraph (b) of 26
this subsection, but this provision shall not be construed so as to extend 27 UNOFFICIAL COPY 25 RS BR 1160
Page 48 of 60
XXXX 2/17/2025 2:52 PM Jacketed
the duration of payments; or 1
2. If an employee returns to work at a weekly wage equal to or greater than 2
the average weekly wage at the time of injury, the weekly benefit for 3
permanent partial disability shall be determined under paragraph (b) of 4
this subsection for each week during which that employment is 5
sustained. During any period of cessation of that employment, 6
temporary or permanent, for any reason, with or without cause, payment 7
of weekly benefits for permanent partial disability during the period of 8
cessation shall be two (2) times the amount otherwise payable under 9
paragraph (b) of this subsection. This provision shall not be construed so 10
as to extend the duration of payments. 11
3. Recognizing that limited education and advancing age impact an 12
employee's post-injury earning capacity, an education and age factor, 13
when applicable, shall be added to the income benefit multiplier set 14
forth in paragraph (c)1. of this subsection. If at the time of injury, the 15
employee had less than eight (8) years of formal education, the 16
multiplier shall be increased by four-tenths (0.4); if the employee had 17
less than twelve (12) years of education or a high school Equivalency 18
diploma, the multiplier shall be increased by two-tenths (0.2); if the 19
employee was age sixty (60) or older, the multiplier shall be increased 20
by six-tenths (0.6); if the employee was age fifty-five (55) or older, the 21
multiplier shall be increased by four-tenths (0.4); or if the employee was 22
age fifty (50) or older, the multiplier shall be increased by two-tenths 23
(0.2). 24
4. Notwithstanding the provisions of KRS 342.125, a claim may be 25
reopened at any time during the period of permanent partial disability in 26
order to conform the award payments with the requirements of 27 UNOFFICIAL COPY 25 RS BR 1160
Page 49 of 60
XXXX 2/17/2025 2:52 PM Jacketed
subparagraph 2. of this paragraph. 1
(d) For permanent partial disability, if an employee has a permanent disability 2
rating of fifty percent (50%) or less as a result of a work-related injury, the 3
compensable permanent partial disability period shall be four hundred twenty-4
five (425) weeks, and if the permanent disability rating is greater than fifty 5
percent (50%), the compensable permanent partial disability period shall be 6
five hundred twenty (520) weeks from the date the impairment or disability 7
exceeding fifty percent (50%) arises. Benefits payable for permanent partial 8
disability shall not exceed ninety-nine percent (99%) of sixty-six and two-9
thirds percent (66-2/3%) of the employee's average weekly wage as 10
determined under KRS 342.740 and shall not exceed eighty-two and one-half 11
percent (82.5%) of the state average weekly wage, except for benefits payable 12
pursuant to paragraph (c)1. of this subsection, which shall not exceed one 13
hundred ten percent (110%) of the state average weekly wage, nor shall 14
benefits for permanent partial disability be payable for a period exceeding five 15
hundred twenty (520) weeks, notwithstanding that multiplication of 16
impairment times the factor set forth in paragraph (b) of this subsection would 17
yield a greater percentage of disability. 18
(e) For permanent partial disability, impairment for nonwork-related disabilities, 19
conditions previously compensated under this chapter, conditions covered by 20
KRS 342.732, and hearing loss covered in KRS 342.7305 shall not be 21
considered in determining the extent of disability or duration of benefits under 22
this chapter. 23
(2) The period of any income benefits payable under this section on account of any 24
injury shall be reduced by the period of income benefits paid or payable under this 25
chapter on account of a prior injury if income benefits in both cases are for 26
disability of the same member or function, or different parts of the same member or 27 UNOFFICIAL COPY 25 RS BR 1160
Page 50 of 60
XXXX 2/17/2025 2:52 PM Jacketed
function, and the income benefits payable on account of the subsequent disability in 1
whole or in part would duplicate the income benefits payable on account of the pre-2
existing disability. 3
(3) Subject to the limitations contained in subsection (4) of this section, when an 4
employee, who has sustained disability compensable under this chapter, and who 5
has filed, or could have timely filed, a valid claim in his or her lifetime, dies from 6
causes other than the injury before the expiration of the compensable period 7
specified, portions of the income benefits specified and unpaid at the individual's 8
death, whether or not accrued or due at his or her death, shall be paid, under an 9
award made before or after the death, for the period specified in this section, to and 10
for the benefit of the persons within the classes at the time of death and in the 11
proportions and upon the conditions specified in this section and in the order 12
named: 13
(a) To the widow or widower, if there is no child under the age of eighteen (18) 14
or incapable of self-support, benefits at fifty percent (50%) of the rate 15
specified in the award; or 16
(b) If there are both a widow or widower and such a child or children, to the 17
widow or widower, forty-five percent (45%) of the benefits specified in the 18
award, or forty percent (40%) of those benefits if such a child or children are 19
not living with the widow or widower; and, in addition thereto, fifteen percent 20
(15%) of the benefits specified in the award to each child. Where there are 21
more than two (2) such children, the indemnity benefits payable on account of 22
two (2) children shall be divided among all the children, share and share alike; 23
or 24
(c) If there is no widow or widower but such a child or children, then to the child 25
or children, fifty percent (50%) of the benefits specified in the award to one 26
(1) child, and fifteen percent (15%) of those benefits to a second child, to be 27 UNOFFICIAL COPY 25 RS BR 1160
Page 51 of 60
XXXX 2/17/2025 2:52 PM Jacketed
shared equally. If there are more than two (2) such children, the indemnity 1
benefits payable on account of two (2) children shall be divided equally 2
among all the children; or 3
(d) If there is no survivor in the above classes, then the parent or parents wholly 4
or partly actually dependent for support upon the decedent, or to other wholly 5
or partly actually dependent relatives listed in paragraph (g) of subsection (1) 6
of KRS 342.750, or to both, in proportions that the commissioner provides by 7
administrative regulation. 8
(e) To the widow or widower upon remarriage, up to two (2) years, benefits as 9
specified in the award and proportioned under paragraphs (a) or (b) of this 10
subsection, if the proportioned benefits remain unpaid, to be paid in a lump 11
sum. 12
(4) All income benefits payable pursuant to this chapter shall terminate as of the date 13
upon which the employee reaches the age of seventy (70), or four (4) years after the 14
employee's injury or last exposure, whichever last occurs. In like manner all income 15
benefits payable pursuant to this chapter to spouses and dependents shall terminate 16
as of the date upon which the employee would have reached age seventy (70) or 17
four (4) years after the employee's date of injury or date of last exposure, whichever 18
last occurs. 19
(5) All income benefits pursuant to this chapter otherwise payable for temporary total 20
and permanent total disability shall not be offset by unemployment insurance 21
benefits paid for unemployment during the period of temporary total or permanent 22
total disability. 23
(6) All income benefits otherwise payable pursuant to this chapter shall be offset by 24
payments made under an exclusively employer-funded disability plan, exclusively 25
employer-funded disability retirement plan, exclusively employer-funded sickness 26
and accident plan, or salary continuation, which extends income benefits for the 27 UNOFFICIAL COPY 25 RS BR 1160
Page 52 of 60
XXXX 2/17/2025 2:52 PM Jacketed
same disability covered by this chapter, except where the employer-funded plan 1
contains an internal offset provision for workers' compensation benefits which is 2
inconsistent with this provision. 3
(7) Income benefits otherwise payable pursuant to this chapter for temporary total 4
disability during the period the employee has returned to a light-duty or other 5
alternative job position shall be offset by an amount equal to the employee's gross 6
income minus applicable taxes during the period of light-duty work or work in an 7
alternative job position. 8
(8) If an employee receiving a permanent total disability award returns to work, that 9
employee shall notify the employer, payment obligor, insurance carrier, or special 10
fund as applicable. 11
(9) Income benefits otherwise payable pursuant to this chapter for temporary total 12
disability to a professional athlete under the direction and control of an employer 13
that is a professional team located in Kentucky, absent any collective bargaining 14
agreement, shall terminate no later than the date on which the contract for hire upon 15
which the employment is based expires, so long as the professional athlete has been 16
released to return to employment for which he or she has prior training or 17
experience. 18
Section 13. KRS 342.794 is amended to read as follows: 19
(1) The commissioner shall maintain a list of duly qualified "B" reader medical 20
professionals who[physicians who are licensed in the Commonwealth and] are 21
board-certified pulmonary specialists, currently certified by the National Institute of 22
Occupational Safety and Health (NIOSH) who have agreed to perform pulmonary 23
examinations, interpret chest X-rays, and review other medical evidence pursuant to 24
KRS 342.316 for a fee to be fixed by the commissioner and paid by the Kentucky 25
coal workers' pneumoconiosis fund or the carrier, whichever is the appropriate 26
payment obligor, the provisions of KRS 342.1242 notwithstanding, for claims filed 27 UNOFFICIAL COPY 25 RS BR 1160
Page 53 of 60
XXXX 2/17/2025 2:52 PM Jacketed
on or before June 30, 2017, and by the employer for claims filed after June 30, 1
2017. 2
(2) "'B' reader" means a medical professional[physician] who has demonstrated 3
proficiency in evaluating chest roentgenograms for roentgenographic quality and in 4
the use of the ILO classification for interpreting chest roentgenograms for 5
pneumoconiosis and other diseases by taking and passing a specially designed 6
proficiency examination given on behalf of the National Institute of Occupational 7
Safety and Health (NIOSH) or by the Appalachian Laboratory for Occupational 8
Safety and Health (ALOSH), or successors. 9
(3) "Board-certified pulmonary specialist" means a medical professional[physician 10
licensed in the Commonwealth] who is board-certified in internal medicine with a 11
certification in the subspecialty of pulmonary medicine by the American Board of 12
Internal Medicine. 13
Section 14. KRS 342.122 is amended to read as follows: 14
(1) (a) For calendar year 1997 and for each calendar year thereafter, for the purpose 15
of funding and prefunding the liabilities of the special fund, financing the 16
administration and operation of the Kentucky Workers' Compensation 17
Funding Commission, and financing the expenditures for all programs in the 18
Department of Workers' Claims, Occupational Safety and Health Review 19
Commission, Workers' Compensation Nominating Committee, Department of 20
Workplace Standards, except expenditures for the Division of Wages and 21
Hours contained in the Department of Workplace Standards and the 22
proportional support for general administration and support based on an 23
approved indirect cost allocation plan within the Education and Labor 24
Cabinet, as reflected in the enacted budget of the Commonwealth and enacted 25
by the General Assembly, the funding commission shall impose a special fund 26
assessment rate of nine percent (9%) upon the amount of workers' 27 UNOFFICIAL COPY 25 RS BR 1160
Page 54 of 60
XXXX 2/17/2025 2:52 PM Jacketed
compensation premiums received on and after January 1, 1997, through 1
December 31, 1997, by every insurance carrier writing workers' compensation 2
insurance in the Commonwealth, by every self-insured group operating under 3
the provisions of KRS 342.350(4) and Chapter 304, and against the premium, 4
as defined in KRS 342.0011, of every employer carrying his or her own risk. 5
(b) The funding commission shall, for calendar year 1998 and thereafter, establish 6
for the special fund an assessment rate to be assessed against all premium 7
received during that calendar year which shall produce enough revenue to 8
amortize on a level basis the unfunded liability of the special fund as of June 9
30 preceding January 1 of each year, for the period remaining until December 10
31, 2029. The interest rate to be used in this calculation shall reflect the 11
funding commission's investment experience to date and the current 12
investment policies of the commission. When the claim liabilities of the 13
special fund are fully funded or prefunded, the assessment shall continue 14
for the purpose of financing the administration, operation, and 15
expenditures established in paragraph (a) of this subsection. This 16
assessment shall be imposed upon the amount of workers' compensation 17
premiums received by every insurance carrier writing workers' compensation 18
insurance in the Commonwealth, by every self-insured group operating under 19
the provisions of KRS 342.350(4) and Chapter 304, and against the premium, 20
as defined in KRS 342.0011, of every employer carrying its own risk. On or 21
before October 1 of each year, the commission shall notify each insurance 22
carrier writing workers' compensation insurance in the Commonwealth, every 23
group of self-insured employers, and each employer carrying its own risk, of 24
the rates which shall become effective on January 1 of each year, unless 25
modified by the General Assembly. 26
(c) All assessments imposed by this section shall be paid to the Kentucky 27 UNOFFICIAL COPY 25 RS BR 1160
Page 55 of 60
XXXX 2/17/2025 2:52 PM Jacketed
Workers' Compensation Funding Commission and shall be credited to the 1
benefit reserve fund within the Kentucky Workers' Compensation Funding 2
Commission. 3
(d) The assessments imposed in this chapter shall be in lieu of all other 4
assessments or taxes on workers' compensation premiums. 5
(2) (a) These assessments shall be paid quarterly not later than the thirtieth day of the 6
month following the end of the quarter in which the premium is received. 7
Receipt shall be considered timely through actual physical receipt or by 8
postmark of the United States Postal Service. Employers carrying their own 9
risk and employers defined in KRS 342.630(2) shall pay the annual 10
assessments in four (4) equal quarterly installments. 11
(b) Beginning on January 1, 2020, all assessments shall be electronically remitted 12
to the funding commission quarterly not later than the thirtieth day of the 13
month following the end of the quarter in which the premium is received. 14
Receipt shall be considered timely when filed and remitted using the 15
appropriate electronic pay system as prescribed by the funding commission. 16
Employers carrying their own risk and employers defined in KRS 342.630(2) 17
shall pay the annual assessments in four (4) equal quarterly installments. 18
(3) The assessments imposed by this section may be collected by the insurance carrier 19
from the insured. However, the insurance carrier shall not collect from the employer 20
any amount exceeding the assessments imposed pursuant to this section. If the 21
insurance carrier collects the assessment from an insured, the assessment shall be 22
collected at the same time and in the same proportion as the premium is collected. 23
The assessment for an insurance policy or other evidence of coverage providing a 24
deductible may be collected in accordance with this chapter on a premium amount 25
that equates to the premium that would have applied without the deductible. Each 26
statement from an insurance carrier presented to an insured reflecting premium and 27 UNOFFICIAL COPY 25 RS BR 1160
Page 56 of 60
XXXX 2/17/2025 2:52 PM Jacketed
assessment amounts shall clearly identify and distinguish the amount to be paid for 1
premium and the amount to be paid for assessments. No insurance carrier shall 2
collect from an insured an amount in excess of the assessment percentages imposed 3
by this chapter. The assessment for an insurance policy or other evidence of 4
coverage providing a deductible may be collected in accordance with this chapter 5
on a premium amount that equates to the premium that would have applied without 6
the deductible. The percentages imposed by this chapter for an insurance policy 7
issued by an insurance company shall be those percentages in effect on the annual 8
effective date of the policy, regardless of the date that the premium is actually 9
received by the insurance company. 10
(4) A self-insured group may elect to report its premiums and to have its assessments 11
computed in the same manner as insurance companies. This election may not be 12
rescinded for at least ten (10) years, nor may this election be made a second time 13
for at least another ten (10) years, except that the board of directors of the funding 14
commission may, at its discretion, waive the ten (10) year ban on a case-by-case 15
basis after formal petition has been made to the funding commission by a self-16
insured group. 17
(5) The funding commission, as part of the collection and auditing of the special fund 18
assessments required by this section, shall annually require each insurance carrier 19
and each self-insured group to provide a list of employers which it has insured or 20
which are members and the amount collected from each employer. Additionally, the 21
funding commission shall require each entity paying a special fund assessment to 22
report the SIC code for each employer and the amount of premium collected from 23
each SIC code. An insurance carrier or self-insured group may require its insureds 24
or members to furnish the SIC code for each of their employees. However, the 25
failure of any employer to furnish said codes shall not relieve the insurance carrier 26
or self-insured group from the obligation to furnish same to the funding 27 UNOFFICIAL COPY 25 RS BR 1160
Page 57 of 60
XXXX 2/17/2025 2:52 PM Jacketed
commission. The Department of Workforce Development, Education and Labor 1
Cabinet, is hereby directed to make available the SIC codes assigned in its records 2
to specific employers to aid in the reporting and recording of the special fund 3
assessment data. 4
(6) Each self-insured employer, self-insured group, or insurance carrier shall provide 5
any information and submit any reports the Department of Revenue or the funding 6
commission may require to effectuate the provisions of this section. In addition, the 7
funding commission may enter reciprocal agreements with other governmental 8
agencies for the exchange of information necessary to effectuate the provisions of 9
this section. 10
(7) The special fund shall be required to maintain a central claim registry of all claims 11
to which it is named a party, giving each such claim a unique claim number and 12
thereafter recording the status of each claim on a current basis. The registry shall be 13
established by January 26, 1988, for all claims on which payments were made since 14
July 1, 1986, or which were pending adjudication since July 1, 1986, by audit of all 15
claim files in the possession of the special fund. 16
(8) The fund heretofore designated as the subsequent claim fund is abolished, and there 17
is substituted therefor the special fund as set out by this section, and all moneys and 18
properties owned by the subsequent claim fund are transferred to the special fund. 19
(9) Notwithstanding any other provisions of this section or this chapter to the contrary, 20
the total amount of funds collected pursuant to the assessment rates adopted by the 21
funding commission shall not be limited to the provisions of this section. 22
(10) All assessment rates imposed for periods prior to January 1, 1997, under KRS 23
342.122 shall forever remain applicable to premiums received on policies with 24
effective dates prior to January 1, 1997, by every insurance carrier writing workers' 25
compensation insurance in the Commonwealth, by every self-insured group 26
operating under the provision of KRS 342.350(4) and Chapter 304, and against the 27 UNOFFICIAL COPY 25 RS BR 1160
Page 58 of 60
XXXX 2/17/2025 2:52 PM Jacketed
premium, as defined in KRS 342.0011, of every employer carrying its own risk. 1
Section 15. KRS 342.610 is amended to read as follows: 2
(1) Every employer subject to this chapter shall be liable for compensation for injury, 3
occupational disease, or death without regard to fault as a cause of the injury, 4
occupational disease, or death. 5
(2) A contractor who subcontracts all or any part of a contract and his or her carrier 6
shall be liable for the payment of compensation to the employees of the 7
subcontractor unless the subcontractor primarily liable for the payment of such 8
compensation has secured the payment of compensation as provided for in this 9
chapter. Any contractor or his or her carrier who shall become liable for such 10
compensation may recover the amount of such compensation paid and necessary 11
expenses from the subcontractor primarily liable therefor. A person who contracts 12
with another: 13
(a) To have work performed consisting of the removal, excavation, or drilling of 14
soil, rock, or mineral, or the cutting or removal of timber from land; or 15
(b) To have work performed of a kind which is a regular or recurrent part of the 16
work of the trade, business, occupation, or profession of such person 17
shall for the purposes of this section be deemed a contractor, and such other person 18
a subcontractor. This subsection shall not apply to the owner or lessee of land 19
principally used for agriculture. 20
(3) Liability for compensation shall not apply to injury, occupational disease, or death 21
to the employee if the employee willfully intended to injure or kill himself, herself, 22
or another. 23
(4) If an employee knowingly introduced into his or her body a legal or illegal 24
intoxicating substance,[voluntarily introduced an illegal, nonprescribed substance 25
or substances or a prescribed substance or substances in amounts in excess of 26
prescribed amounts into his or her body detected in the blood, as measured by a 27 UNOFFICIAL COPY 25 RS BR 1160
Page 59 of 60
XXXX 2/17/2025 2:52 PM Jacketed
scientifically reliable test, that could cause a disturbance of mental or physical 1
capacities, it shall be presumed that the illegal, nonprescribed substance or 2
substances or the prescribed substance or substances in amounts in excess of 3
prescribed amounts caused the injury, occupational disease, or death of the 4
employee and] liability for compensation shall not apply to the injury, occupational 5
disease, or death to the employee if the intoxicating substance is determined to be 6
the proximate cause of the injury, occupational disease, or death to the employee. 7
(5) If injury or death results to an employee through the deliberate intention of his or 8
her employer to produce such injury or death, the employee or the employee's 9
dependent as herein defined shall receive the amount provided in this chapter in a 10
lump sum to be used, if desired, to prosecute the employer. The dependents may 11
bring suit against the employer for any amount they desire. If injury or death results 12
to an employee through the deliberate intention of his or her employer to produce 13
such injury or death, the employee or the employee's dependents may take under 14
this chapter, or in lieu thereof, have a cause of action at law against the employer as 15
if this chapter had not been passed, for such damage so sustained by the employee, 16
his or her dependents or personal representatives as is recoverable at law. If a suit is 17
brought under this subsection, all right to compensation under this chapter shall 18
thereby be waived as to all persons. If a claim is made for the payment of 19
compensation or any other benefit provided by this chapter, all rights to sue the 20
employer for damages on account of such injury or death shall be waived as to all 21
persons. 22
(6) Prior to issuing any building permit pursuant to KRS 198B.060(10), every local 23
building official shall require proof of workers' compensation coverage from the 24
builder before a permit is issued. A person who is exempt under the exception 25
contained in KRS 342.650(2), and any contractor otherwise exempt from this 26
chapter, shall so certify to the local building official, in writing and on a form 27 UNOFFICIAL COPY 25 RS BR 1160
Page 60 of 60
XXXX 2/17/2025 2:52 PM Jacketed
prescribed by the commissioner, in lieu of providing proof of workers' 1
compensation coverage. 2
(7) Every employer subject to this chapter, at its principal office and such other 3
locations where employees customarily report for payroll and personnel matters, 4
shall post a notice stating the name of its workers' compensation insurance carrier 5
and policy number, setting forth the means to access medical care for injuries, the 6
employee's obligation to give notice of accidents, and such other matters 7
concerning the employee's rights under this chapter as may be required by the 8
commissioner so as to afford every employee the opportunity to become informed 9
about the employer's workers' compensation program. The format and contents of 10
the notice shall be established by the commissioner through administrative 11
regulation, and copies shall be provided to the employer by its insurance carrier. 12