Workers' Comp Settlements in Kentucky

Yes. If the parties reach an agreement on compensation that conforms to the workers' compensation law, a signed memorandum of the agreement is filed with the Commissioner and becomes enforceable if approved by an administrative law judge; nothing operates as a final settlement unless it is filed and approved this way. A settlement that converts future weekly income benefits of more than $100 per week into a lump sum will not be approved unless there is reasonable assurance the worker will have an adequate source of income during the disability, and the discount rate for lump sums is set each year by the Commissioner. If the parties later disagree about an approved agreement, the exclusive remedy is a motion to reopen under KRS 342.125.

Temporary and permanent total disability benefits are paid during the disability. Permanent partial disability is paid for 425 weeks if the permanent disability rating is 50% or less, and for 520 weeks (from the date the disability exceeding 50% arises) if the rating is greater than 50%; permanent partial benefits may never be paid for more than 520 weeks. A period of temporary total disability within the permanent partial period extends that period. All income benefits end when the employee reaches age 70, or four years after the injury or last exposure, whichever is later.

In Kentucky all workers' comp attorney fees must be reviewed and approved by an Administrative Law Judge. For fee contracts signed on or after July 14, 2018, the fee is limited to 20% of the first $25,000 of the award, 15% of the next $25,000 and 10% of the remainder, up to a maximum of $18,000 (older contracts have a $12,000 cap); the employee pays the fee from the award or settlement. Free help is available from the Department's Ombudsman/Specialist Division (800-554-8601), whose specialists help with forms but cannot represent you.