Kentucky Workers’ Compensation 101: An Overview of the Program

In Kentucky, it is mandatory for employers’ to provide workers’ compensation. If there is a job-related injury or death, it is the employer’s responsibility to provide the employee or the employee’s family with medical and disability benefits.

Who is Considered an Employer?

Under KRS 342.630, an employer is any person or entity with one or more employees. This definition includes state, city and county. That’s pretty straightforward. 

Who is Considered an Employee?

Under KRS 342.640, an employee is anyone working under contract for hire, expressed or implied; executive officers of corporations; state, county or city employees; volunteer firefighters; those who sell and deliver newspapers; and anyone person performing services in a trade profession or business. Although the list of covered employees is vast, under KRS 342.650 there are several exemptions including: agriculture employees, certain religious organizations and a domestic worker in a private home if less than two.

The 3 Major Components of Kentucky Workers’ Compensation…

1. Medical Expense pay
2. Disability pay
3. Vocational Rehabilitation

Workers’ compensation can be viewed as a type of insurance that accommodates employees who need compensation for medical care due to an injury during the course of work in exchange for the employee’s right to sue their employer for negligence. Plans vary according to jurisdictions, though they can be made for weekly payments instead of wages as a type of disability insurance, compensation for past and future economic losses, the payment or reimbursement of the medical expenses as a type of health insurance, and benefits payable to the dependents of workers who were killed as a type of life insurance. Not included in worker compensation plans are punitive damages for employer negligence and general damages for pain and suffering.