Current through Register Vol. 51, No. 3, September 1, 2024
NECESSITY, FUNCTION, AND CONFORMITY:
KRS
342.260 requires the Commissioner to
promulgate administrative regulations as he considers necessary to carry on the
work of the department and for carrying out the provisions of KRS Chapter 342.
For injuries occurring or disabilities arising on or after July 15, 1982 and
prior to April 4, 1994,
KRS
342.320 requires an administrative law judge
to approve the payment of the attorney's fee in any case involving benefits
under KRS Chapter 342 and to commute the final payments of benefits payable
under the award to a lump sum for that purpose. KRS Chapter 342.120, as
effective prior to April 4, 1994, provided the method by which an employer or
its insurance carrier and the Special Fund shared liability for awards for
injuries occurring and disabilities arising on or after July 15, 1982, and
prior to April 4, 1994. This administrative regulation establishes a mechanism
for crediting the above referenced parties for the payment of attorneys' fees
in these cases.
Section 1. Credit for
Lump Sum Payment of Charges by Attorneys. A party defendant shall be entitled,
without further order of the administrative law judge, to credit for the lump
sum value of any attorney's fee paid. The procedure for payment of attorney
fees and the impact of such payment on weekly benefits shall be as follows:
(1) The Labor Cabinet, Department of Workers'
Claims, Division of the Workers' Compensation Funds, shall calculate the credit
for attorney's fee as follows:
(a) Number of
weeks as awarded due in future (do not include payments payable prior to
attorney fee award) = X weeks.
(b)
Obtain a lump sum of X (X weeks on lump sum table) = Y weeks.
(c) Divide amount of attorney fee by amount
due per week = Z weeks.
(d) Y weeks
minus Z weeks = A weeks.
(e) Look
in table on lump sum and find A weeks in the Present Work column of the chart
and then take the figure in the weeks column of the chart = B weeks, the total
number of weeks of actual remaining award payments by parties defendant before
the credit causes cessation of award payment checks.
(f) X minus B = C weeks, the number of weeks
of benefit cessation required to equal the statutory credit.
(2) The Labor Cabinet, Department
of Workers' Claims, Division of Workers' Compensation Funds, shall calculate
the employer's credit for attorney's fee as follows:
(a) Number of weeks due from employer or
insurance carrier in future pursuant to
KRS
342.120 (do not include payments payable
prior to attorney fee award) = X1.
(b) Obtain a lump sum of X1 (X1 weeks on lump
sum table) = Y1 weeks.
(c) Divide
amount of attorney fee by amount due per week = Z weeks.
(d) Multiply Z weeks by employer's percentage
of award = Z1 weeks.
(e) Y1 weeks
minus Z1 weeks = A1 weeks.
(f) Look
in table on lump sum and find A1 weeks in the Present Worth column of the chart
and then take the figure in the weeks column of the chart = B1 weeks, the
number of weeks yet to be paid by the employer or the insurance carrier before
the Special Fund begins to pay disability benefits.
(3) The calculations set forth in subsections
(1) and (2) of this section shall be completed by the Division of the Workers'
Compensation Funds and the results forwarded to the other payers, as well as
the plaintiff. Any disagreements as to the application of the formula shall be
resolved by an administrative law judge upon motion by any party. Special
Fund's notice shall include the following information: Attorney fee to be paid
by each party. The period of time for which each party defendant will be
responsible for disability benefit payment and, in cases involving lifetime
benefits, the date upon which benefits payments will be reinstituted by the
Special Fund after taking credit for the amount advanced to pay the attorney's
fee in a lump sum.
(4) When any
payer other than the Special Fund has fulfilled its obligation as reduced
pursuant to subsection (2) of this section, payments will commence by the
Special Fund (there will be no stoppage to recover advance attorney fee
payments at this time). The Special Fund shall continue weekly benefit payments
until such time as the number of weeks remaining in the specified benefit
period or the life expectancy as determined by mortality tables approved by the
Commissioner, multiplied by the weekly benefit rate is equal to the total
attorney fee and discount paid by all payers on behalf of the injured worker.
In claims where benefits are payable for a lifetime, the weekly benefit
payments will be reinstituted by the Special Fund at such time as the payer
surpasses the life expectancy as determined by the mortality table approved by
the Commissioner and shall continue until terminated by death or order of an
administrative law judge.
(5) No
part of this section should be viewed as a limitation on the party's right to
negotiate a settlement subject to statutory approval by an administrative law
judge.
