2009 Kentucky Revised Statutes
CHAPTER 342 WORKERS' COMPENSATION
342.040 Time of payment of income benefits and retraining incentive benefits -- Attorney's fees for recovery of overdue temporary total disability income benefits -- Interest on overdue benefits.

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Page 1 of 2 342.040 Time of payment of income benefits and retraining incentive benefits -- Attorney's fees for recovery of overdue temporary total disability income <br>benefits -- Interest on overdue benefits. (1) Except as provided in KRS 342.020, no income benefits shall be payable for the first seven (7) days of disability unless disability continues for a period of more than <br>two (2) weeks, in which case income benefits shall be allowed from the first day of <br>disability. All income benefits shall be payable on the regular payday of the <br>employer, commencing with the first regular payday after seven (7) days after the <br>injury or disability resulting from an occupational disease, with interest at the rate of <br>twelve percent (12%) per annum on each installment from the time it is due until <br>paid, except that if the administrative law judge determines that a denial, delay, or <br>termination in the payment of income benefits was without reasonable foundation, <br>the rate of interest shall be eighteen percent (18%) per annum. In no event shall <br>income benefits be instituted later than the fifteenth day after the employer has <br>knowledge of the disability or death. Income benefits shall be due and payable not <br>less often than semimonthly. If the employer's insurance carrier or other party <br>responsible for the payment of workers' compensation benefits should terminate or <br>fail to make payments when due, that party shall notify the commissioner of the <br>termination or failure to make payments and the commissioner shall, in writing, <br>advise the employee or known dependent of right to prosecute a claim under this <br>chapter. (2) If overdue temporary total disability income benefits are recovered in a proceeding brought under this chapter by an attorney for an employee, or paid by the employer <br>after receipt of notice of the attorney's representation, a reasonable attorney's fee for <br>these services may be awarded. The award of attorney's fees shall be paid by the <br>employer if the administrative law judge determines that the denial or delay was <br>without reasonable foundation. No part of the fee for representing the employee in <br>connection with the recovery of overdue temporary total disability benefits withheld <br>without reasonable foundation shall be charged against or deducted from benefits <br>otherwise due the employee. (3) All retraining incentive benefits awarded pursuant to KRS 342.732 shall be payable on the regular payday of the employer, commencing with the second regular payday <br>after the award of the retraining incentive benefit by the administrative law judge <br>becomes final. Retraining incentive benefits shall be due and payable not less often <br>than semimonthly. (4) Upon written request of the employee, all payments of compensation shall be mailed to the employee at his or her last known address. Effective: July 15, 2010 <br>History: Amended 2010 Ky. Acts ch. 24, sec. 1785, effective July 15, 2010. -- Amended 2000 Ky. Acts ch. 514, sec. 4, effective July 14, 2000. -- Amended 1996 <br>(1st Extra. Sess.) Ky. Acts ch. 1, sec. 54, effective December 12, 1996. -- Amended <br>1996 Ky. Acts ch. ch. 355, sec. 7, effective July 15, 1996. -- Amended 1994 Ky. Acts <br>ch. 181, part 15, sec. 76, effective April 4, 1994. -- Amended 1990 Ky. Acts ch. 21, <br>sec. 1, effective July 13, 1990; and ch. 515, sec. 1, effective July 13, 1990. -- <br>Amended 1987 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 7, effective October 26, 1987. - Page 2 of 2 - Amended 1982 Ky. Acts ch. 7, sec. 1, effective July 15, 1982. -- Amended 1972 <br>Ky. Acts ch. 78, sec. 13. -- Amended 1956 Ky. Acts ch. 77, sec. 4, effective August <br>1, 1956. -- Amended 1948 Ky. Acts ch. 64, sec. 4. -- Recodified 1942 Ky. Acts <br>ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4887.

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