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September 3, 2019 11:55am

KY Supreme Court preserves key provision in GLI-backed workers’ comp reform legislation

The Kentucky Supreme Court issued a ruling last week that preserves a key element of GLI-backed legislation which has already resulted in savings for Greater Louisville businesses. 

Responding to a challenge to part of a historic workers’ compensation reform bill passed in 2018, the Court upheld a retroactivity provision terminating income replacement benefits when an employee turns 70 or four years post-injury. This provision was part of a larger reform package that has not only served to keep workers’ compensation rates from increasing but has also resulted in a 10 percent cost reduction for Kentucky employers. Representative Adam Koenig (R-Erlanger) was the lead sponsor of House Bill 2 in 2018.  

Passing workers compensation reform legislation was a key priority for GLI in the 2018 legislative session because of the positive impact reforms would have on our region’s business competitiveness. GLI joined a coalition with the Kentucky Chamber of Commerce, Commerce Lexington, and Northern Kentucky Chamber to file an amicus brief in defense of the retroactivity provision in House Bill 2.  

By preserving this important provision, the Court’s ruling protects key reforms to Kentucky workers’ compensation system that will keep costs low for employers and ensures Greater Louisville will continue to be an attractive region for businesses.