On October 7, 2016, the Kentucky Department of Workers’ Claims enacted significant changes to the regulations governing KRS Chapter 342, Kentucky’s Workers’ Compensation Act. Under Kentucky law, regulations promulgated by the Department of Workers’ Claims govern the procedural handling of workers’ compensation claims. Many changes in the updated regulations will not affect day-to-day handling of claims, such as implementation of an electronic filing system. A few changes, however, should be accounted for by workers’ compensation carriers and employers throughout Kentucky.
Most importantly, the updated regulations include significant changes to the deadline requirement for filing a Notice of Claim Denial or Acceptance (Form 101), i.e. the “Answer” in workers’ compensation claim. Under the old regulation, the Department of Workers’ Claims would typically issue a notice letter and a copy of the plaintiff’s Application for Resolution of Injury Claim (Form 111), i.e. the “Complaint” in a workers’ compensation claim. A few weeks later, the Department of Workers’ Claims would send out a Scheduling Order. This dual notice practice often created confusion as to when an employer or insurance carrier would have to respond to a plaintiff’s claim.
Under the new regulations, the responsive pleading requirement is now far more specific. Upon receipt of a plaintiff’s Application for Resolution of Injury Claim, the Department of Workers’ Claims will issue a Notice of Filing of Application. The employer or insurance carrier must respond to the Notice of Filing of Application within forty-five (45) days – that is the date upon which notice was issued by the Department of Workers’ Claims, not the date upon which notice is received. Under the new regulation, the Notice of Filing of Application will be the only form of notice provided by the Department of Workers’ Claims.
Failure to respond to a Notice of Filing of Application will result in default judgment. In Kentucky, Administrative Law Judges and the Board of Workers’ Compensation rarely set aside default judgment entered against employers who fail to file a Notice of Claim Denial or Acceptance in a timely manner. Therefore, it is now more critical than ever to stay on top of new claims. We strongly urge all Kentucky employers and insurance carriers to contact outside counsel immediately upon receipt of a Notice of Filing of Application.
Other important changes include a new requirement that only licensed outside counsel can sign and tender settlement agreements. Additionally, the regulations require claims adjusters with settlement authority be available by phone during a Benefit Review Conference. The new regulation provides that a failure to abide by this requirement may result in sanctions.
If you have any questions regarding the new regulations or any questions regarding workers’ compensation, please call one of our Workers’ Compensation Practice Group members.
This has been prepared for informational purposes only. It does not contain legal advice or legal opinion and should not be relied upon for individual situations. Nothing herein creates an attorney-client relationship between the Reader and Reminger. The information in this document is subject to change and the Reader should not rely on the statements in this document without first consulting legal counsel.
THIS IS AN ADVERTISEMENT
