Key Elements of Kentucky Workers' Compensation Benefits
In Kentucky, workers' compensation benefits are governed by the Kentucky Revised Statutes (KRS) and are calculated based on three primary components: wage replacement, medical expenses, and disability payments. Wage replacement is tied to the employee's average weekly wage (AWW), while medical expenses cover reasonable costs for treatment. Disability payments vary by the severity and duration of the injury.
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How Average Weekly Wage (AWW) Is Determined
The AWW is the cornerstone of the wage‑replacement calculation. Kentucky law requires the employer to report the employee's earnings for the 52 weeks preceding the injury. If the employee worked less than 52 weeks, the total earnings are divided by the number of weeks actually worked. The resulting figure is then compared to the state's statutory wage caps; for 2024 the maximum AWW is $1,100, and the minimum is $250.
Wage‑Replacement Rates and Duration
Once the AWW is established, the temporary total disability (TTD) rate is 66⅔% of that wage, subject to the statutory caps. This rate applies for the first 13 weeks of a claim. After 13 weeks, the rate drops to 66⅔% of the state's minimum wage if the employee's AWW exceeds the cap, or remains at the capped amount if the AWW is lower. Permanent total disability (PTD) benefits are calculated using a schedule of compensation that multiplies the AWW by a factor based on the employee's age and years of service.
Medical Expense Reimbursement
All medically necessary treatments approved by the employer's insurance carrier are reimbursed at actual cost, without a deductible. Kentucky does not impose a cap on medical benefits, but the employer may require pre‑authorization for certain procedures. The claimant must provide documentation such as invoices, prescriptions, and physician orders.
Disability Payment Schedules
Disability benefits are categorized as temporary or permanent, and as total or partial. The KRS provides a detailed schedule that assigns a percentage of the AWW to each category. For example, temporary partial disability (TPD) is paid at 66⅔% of the AWW for the portion of wages lost due to reduced capacity, while permanent partial disability (PPD) uses a statutory table that considers the loss of specific body parts or functions.
Sample Calculation Table
| Component | Formula | Result (example AWW $800) |
|---|---|---|
| Temporary Total Disability (first 13 weeks) | 66⅔% × AWW | $533.33 per week |
| Temporary Total Disability (after 13 weeks) | 66⅔% × Minimum wage ($250) | $166.67 per week |
| Medical Reimbursement | Actual cost of approved treatment | Varies |
| Permanent Total Disability | AWW × Age/Service factor (e.g., 1.5) | $1,200 per month |
Factors That Can Alter Calculations
Several variables can affect the final benefit amounts: pre‑existing conditions, the employee's classification code, and whether the injury is deemed work‑related by the Workers' Compensation Board. Employers may also negotiate settlements that differ from statutory calculations, but any agreement must meet or exceed the minimum benefits prescribed by KRS.