HB 2 - Workers' Compensation

The Senate State and Local Government Committee passed House Bill 2 by a vote of 7-4, Wednesday, March 21, 2018, in Frankfort. HB 2 updates workers’ compensation laws in Kentucky. It was sponsored by Rep. Adam Koenig.

Updates are needed to Kentucky’s workers’ compensation laws to better reflect the workforce in the state today. It’s vastly different than the workforce when these laws originally went into effect. Also, the needs of employers and those injured on the job are evolving while no significant statutory changes have been made in more than 20 years.

County officials understand the importance of growing our economy, Kentucky Association of Counties (KACo) Deputy Director Jim Henderson said.

“This translates into more dollars for local government,” Henderson noted of HB 2. “Being a pro-business climate is good for counties. Even beyond that, counties are concerned about anything that puts more costs on local government. Counties are strapped like never before.”

When KACo formed in 1974, counties couldn’t buy workers’ compensation insurance in the open market, according to Henderson, who previously served as judge/executive in Simpson County.

“So our association started its own workers compensation program,” Henderson said. “Our members, county governments and their employees across the state, are our shareholders. As costs increase and/or rules or laws change, it makes it more expensive to provide workers’ compensation. These costs are passed on directly to our members. Local governments have only one place to pass along their costs, and that’s to the taxpayer.”

In light of that, HB 2:

• Restores the legislative intent of statutes misinterpreted by Kentucky courts.
• Provides medical cost containment measures to address rising medical costs.
• Promotes safe workplaces and helps curb opioid abuse by requiring the implementation of evidenced-based medical treatment guidelines and a pharmaceutical formulary.
• Creates a competitive marketplace for the coal industry by ensuring a fair adjudication process for black lung claims.
• Increases the state Average Weekly Wage to more fairly compensate injured workers.
• Increases the cap on attorney fees and restructures the payment tiers.
• Includes certain cancers under the 20-year statute of limitation that are provided for radiation and asbestos-related diseases.

“House Bill 2 is a good compromise bill,” Henderson said.

On Feb. 21, 2018, HB 2 passed the House on a 55-39 vote. It now heads to the Senate floor.