2014 Kentucky Revised Statutes
CHAPTER 342 - WORKERS' COMPENSATION
342.990 Penalties -- Restitution.
Download as PDF
<![CDATA[342.990 Penalties -- Restitution.
(1)
(2)
(3)
(4)
(5)
(6)
(7)
The commissioner shall initiate enforcement of civil and criminal penalties
imposed in this section.
When the commissioner receives information that he or she deems sufficient to
determine that a violation of this chapter has occurred, he or she shall seek
civil penalties pursuant to subsections (3) to (7) of this section, criminal
penalties pursuant to subsections (8) and (9) of this section, or both.
The commissioner shall initiate enforcement of a civil penalty by
simultaneously citing the appropriate party for the offense and stating the civil
penalty to be paid.
If, within fifteen (15) working days from the receipt of the citation, a cited party
fails to notify the commissioner that he or she intends to contest the citation,
then the citation shall be deemed final.
If a cited party notifies the commissioner that he or she intends to challenge a
citation issued under this section, the commissioner shall cause the matter to
be heard as soon as practicable by an administrative law judge and in
accordance with the provisions of KRS Chapter 13B. The burden of proof shall
be upon the attorney representing the commissioner to prove the offense
stated in the citation by a preponderance of the evidence. The parties shall
stipulate to uncontested facts and issues prior to the hearing before the
administrative law judge. The administrative law judge shall issue a ruling
within sixty (60) days following the hearing.
A party may appeal the ruling of the administrative law judge to the Franklin
Circuit Court in conformity with KRS 13B.140.
The following civil penalties shall be applicable for violations of particular
provisions of this chapter:
(a) Any employer, insurer, or payment obligor subject to this chapter who
fails to make a report required by KRS 342.038 within fifteen (15) days
from the date it was due, shall be fined not less than one hundred dollars
($100) nor more than one thousand dollars ($1,000) for each offense;
(b) Any employer, insurer, or payment obligor acting on behalf of an
employer who fails to make timely payment of a statement for services
under KRS 342.020(1) without having reasonable grounds to delay
payment may be fined not less than one hundred dollars ($100) nor more
than one thousand dollars ($1,000) for each offense;
(c) Any person who violates KRS 342.020(9), 342.035(2), 342.040, 342.340,
342.400, 342.420, or 342.630 shall be fined not less than one hundred
dollars ($100) nor more than one thousand dollars ($1,000) for each
offense. With respect to employers who fail to maintain workers'
compensation insurance coverage on their employees, each employee of
the employer and each day of violation shall constitute a separate
offense. With respect to KRS 342.040, any employer's insurance carrier
or other party responsible for the payment of workers' compensation
benefits shall be fined for failure to notify the commissioner of a failure to
make payments when due if a report indicating the reason payment of
income benefits did not commence within twenty-one (21) days of the
(8)
date the employer was notified of an alleged work-related injury or
disease is not filed with the commissioner within twenty-one (21) days of
the date the employer received notice, and if the employee has not
returned to work within that period of time. The date of notice indicated in
the report filed with the department pursuant to KRS 342.038(1), shall
raise a rebuttable presumption of the date on which the employer
received notice;
(d) Any person who violates any of the provisions of KRS 342.165(2),
342.335, 342.395, 342.460, 342.465, or 342.470 shall be fined not less
than two hundred dollars ($200) nor more than two thousand dollars
($2,000) for each offense. With respect to KRS 342.395, each required
notice of rejection form executed by an employee or potential employee of
an employer shall constitute a separate offense;
(e) Any person who fails to comply with the data reporting provisions of
administrative regulations promulgated by the commissioner pursuant to
KRS 342.039, or with utilization review and medical bill audit
administrative regulations promulgated pursuant to KRS 342.035(5), shall
be fined not less than one hundred dollars ($100) nor more than one
thousand dollars ($1,000) for each violation;
(f) Except as provided in paragraph (g) of this subsection, a person who
violates any of the provisions of KRS 342.335(1) or (2) where the claim,
compensation, benefit, or money referred to in KRS 342.335(1) or (2) is
less than or equal to three hundred dollars ($300) shall be fined per
occurrence not more than one thousand dollars ($1,000) per individual
nor five thousand dollars ($5,000) per corporation, or twice the amount of
gain received as a result of the violation, whichever is greater;
(g) Any person who violates any of the provisions of KRS 342.335(1) or (2)
where the claim, compensation, benefit, or money referred to in KRS
342.335(1) or (2) exceeds three hundred dollars ($300) shall be fined per
occurrence not more than five thousand dollars ($5,000) per individual nor
ten thousand dollars ($10,000) per corporation, or twice the amount of
gain received as a result of the violation, whichever is greater;
(h) Any person who violates the employee leasing provision of this chapter
shall be fined not less than five hundred dollars ($500) nor more than five
thousand dollars ($5,000) for each violation;
(i) Any violation of the provisions of this chapter relating to self-insureds
shall constitute grounds for decertification of such self-insured, a fine of
not less than five hundred dollars ($500) nor more than five thousand
dollars ($5,000) per occurrence, or both; and
(j) Actions to collect the civil penalties imposed under this subsection shall
be instituted in the Franklin District Court and the Franklin Circuit Court.
The commissioner shall initiate enforcement of a criminal penalty by causing a
complaint to be filed with the appropriate local prosecutor. If the prosecutor
fails to act on the violation within twenty (20) days following the filing of the
complaint, the commissioner shall certify the inaction by the local prosecutor to
the Attorney General who shall initiate proceedings to prosecute the violation.
The provisions of KRS 15.715 shall not apply to this section.
(9)
The following criminal penalties shall be applicable for violations of particular
provisions of this chapter:
(a) Any person who violates KRS 342.020(9), 342.035(2), 342.040, 342.400,
342.420, or 342.630, shall, for each offense, be fined not less than one
hundred dollars ($100) nor more than one thousand dollars ($1,000), or
imprisoned for not less than thirty (30) days nor more than one hundred
eighty (180) days, or both;
(b) Any person who violates any of the provisions of KRS 342.165(2),
342.335, 342.460, 342.465, or 342.470 shall, for each offense, be fined
not less than two hundred dollars ($200) nor more than two thousand
dollars ($2,000), or imprisoned for not less than thirty (30) days nor more
than one hundred and eighty (180) days, or both;
(c) Any corporation, partnership, sole proprietorship, or other form of
business entity and any officer, general partner, agent, or representative
of the foregoing who knowingly utilizes or participates in any employee
leasing arrangement or mechanism as defined in KRS 342.615 for the
purpose of depriving one (1) or more insurers of premium otherwise
properly payable or for the purpose of depriving the Commonwealth of
any tax or assessment due and owing and based upon said premium
shall upon conviction thereof be subject to a fine of not less than five
hundred dollars ($500) nor more than five thousand dollars ($5,000), or
imprisonment for not more than one hundred eighty (180) days, or both,
for each offense; and
(d) Notwithstanding any other provisions of this chapter to the contrary, when
any employer, insurance carrier, or individual self-insured fails to comply
with this chapter for which a penalty is provided in subparagraphs (7), (8),
and (9) above, such person, if the person is an owner in the case of a
sole proprietorship, a partner in the case of a partnership, a principal in
the case of a limited liability company, or a corporate officer in the case of
a corporation, who knowingly authorized, ordered, or carried out the
violation, failure, or refusal shall be personally and individually liable, both
jointly and severally, for the penalties imposed in the above cited
subparagraphs. Neither the dissolution nor withdrawal of the corporation,
partnership, or other entity from the state, nor the cessation of holding
status as a proprietor, partner, principal, or officer shall discharge the
foregoing liability of any person.
(10) Fines paid pursuant to KRS 342.267 and subsections (7) and (9) of this section
shall be paid into the self-insurance fund established in KRS 342.920.
(11) In addition to the penalties provided in this section, the commissioner and any
administrative law judge or court of jurisdiction may order restitution of a benefit
secured through conduct proscribed by this chapter.
Effective:July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1862, effective July 15, 2010. -Amended 2006 Ky. Acts ch. 245, sec. 2, effective July 12, 2006. -- Amended
2000 Ky. Acts ch. 514, sec. 36, effective July 14, 2000. -- Amended 1996 (1st
Extra. Sess.) Ky. Acts ch. 1, sec. 48, effective December 12, 1996. -- Amended
1996 Ky. Acts ch. 318, sec. 315, effective July 15, 1996; and ch. 355, sec. 16,
effective July 15, 1996. -- Amended 1994 Ky. Acts ch. 181, Part 13, sec. 64,
effective April 4, 1994. -- Amended 1987 (1st Extra. Sess.) Ky. Acts ch. 1,
sec. 71, effective October 26, 1987. -- Amended 1984 Ky. Acts ch. 96, sec. 2,
effective July 13, 1984. -- Amended 1980 Ky. Acts ch. 188, sec. 276, effective
July 15, 1980. -- Amended 1972 Ky. Acts ch. 78, sec. 31. -- Amended 1966 Ky.
Acts ch. 255, sec. 283. -- Amended 1960 Ky. Acts ch. 147, sec. 18. -- Amended
1946 Ky. Acts ch. 61, sec. 4. -- Recodified 1942 Ky. Acts ch. 208, sec. 1,
effective October 1, 1942, from Ky. Stat. secs. 4944, 4945, 4958, 4962, 4968-5.
Legislative Research Commission Note (7/15/96). This section was amended by
1996 Ky. Acts chs. 318 and 355. Where these Acts are not in conflict, they have
been codified together. Where a conflict exists, Acts ch. 355, which was last
enacted by the General Assembly, prevails under KRS 446.250.
Legislative Research Commission Note (12/12/96). The reference to
"subparagraphs (7), (8), and (9) above" in subsection (9)(d) of this statute is how
this text read in 1996 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 48. The normal
hierarchy of subdivision in a section of the Kentucky Revised Statutes is, in
descending order, subsections (indicated by Hindu-Arabic numerals in
parentheses), paragraphs (indicated by lowercase letters in parentheses),
subparagraphs (indicated by Hindu-Arabic numerals followed by a period), and
subdivisions of subparagraphs (indicated by lowercase letters followed by a
period). This statute contains no subparagraphs 7., 8., and 9., but the type of
numbering used suggests that "subsections" may have been meant in this
phrase instead of "subparagraphs."
]]>
Disclaimer: These codes may not be the most recent version.
Kentucky may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
