Workers' Comp

House Bill 2, sponsored by Rep. Adam Koenig, would modernize the state’s workers’ compensation laws, avoid higher premiums for worker’s compensation insurance and save counties several million dollars.

What are the changes House Bill 2 would make to Kentucky Workers’ Compensation law?

• Limit medical benefits for those who do not have a permanent total disability to 15 years, after which the employee can apply for multiple 2 year extensions
• Allow termination of benefits at age 67 or 2 years after injury in future cases
• Increase the percentage paid of the average weekly wage from 100% to 110%
• Legal protection for employers whose workers’ injuries are due to illegal or improper drug use
• Limitations on when a claim can be reopened
• Revise medical treatment guidelines providing consistency in treatment and an objective standard of proper medical care
• Increase the attorney fee cap from $12,000 to $18,000

The Workers’ Compensation Reform bill would repair the expensive damage created last year by the Parker v. Webster case. From 1996 to 2017, Kentucky law stated that disability income benefits would be cut off at the age that the injured worker qualifies for Social Security retirement. In 2017, the Supreme Court declared that law unconstitutional because it treated some employees differently. Therefore, all employees in the workers’ compensation system are able to collect additional income benefits, for life in some cases, and those whose benefits have expired can now reopen their claim to receive additional benefits. Last year’s changes to the law by Parker v. Webster would come at an estimated cost of $6 million which would significantly increase how much Kentucky counties and businesses have to pay to insure their workers.

The bill is supported by a large coalition of organizations in the state including Kentucky Association of Counties, Kentucky League of Cities, Kentucky Chamber of Commerce, Kentucky School Board Association, Kentucky Association of Economic Development, UPS, Ford, Toyota, Kentucky Retail Federation and many more.

House Bill 2 will next go to the full House for a vote.