Kentucky Workers' Comp Settlements

How Workers' Comp Works in Kentucky

Kentucky's workers' compensation system is administered by the state's Department of Workers' Claims. If you're hurt on the job, you're generally entitled to medical care, wage-replacement benefits while you recover, and — if the injury leaves lasting effects — a permanent disability award or settlement. The system is built around your average weekly wage and an impairment rating, and Kentucky has a few rules that work differently from neighboring states. Here's what that looks like in plain terms, with the figures that apply to 2026 injuries.

Temporary Disability: What You're Paid While You Heal

While you can't work, Kentucky pays temporary total disability (TTD) at two-thirds (66 2/3%) of your average weekly wage, subject to a state maximum and minimum that change each year based on the date of injury. For 2026 injuries, the maximum TTD rate is reported at $1,277.99 per week and the minimum at about $232.36 per week. Kentucky does not pay income benefits for the first seven days you're off work — but if your disability lasts more than two weeks, you're paid retroactively for that first week as well.

Permanent Disability and Settlements

Once your doctor decides your condition has reached maximum medical improvement (MMI) and you're left with lasting limitations, you're assigned a permanent impairment rating — a percentage representing how much overall body function you've lost. That rating feeds into a statutory formula, along with statutory multipliers, to set your permanent partial disability (PPD) benefits. Most Kentucky cases resolve in one of two ways:

• Ongoing award — benefits paid weekly over the statutory period, often with future medical care left open.
• Lump-sum settlement — a one-time payment that may close out part or all of the claim, sometimes including future medical care.

Which one is better depends on your future medical needs, your impairment rating, and whether the claim is disputed. A lump sum gives you cash now but can shift the risk of future treatment onto you. Kentucky also caps how long PPD benefits run — generally 425 weeks for ratings of 50% or less and 520 weeks for higher ratings, though you should confirm how the rules apply to your case.

The Doctor Question (Kentucky Does It Differently)

Here's a meaningful difference from many other states: in Kentucky, the injured worker generally chooses the treating physician, rather than being routed through an employer- or insurer-controlled network — unless your employer participates in an approved managed-care plan, which can change the rules. Because the treating doctor's impairment rating drives your permanent disability benefits, choosing the right physician early can matter a great deal to the value of your claim.

Deadlines You Can't Miss

Give your employer notice of the injury as soon as practicable, and file your claim within two years of the date of injury — or within two years of the last voluntary payment of income benefits, whichever is later — under KRS 342.185. Deadlines for occupational diseases and cumulative-trauma injuries can run differently, and missing the deadline can bar your claim entirely, so don't wait. When in doubt, confirm your exact deadline with the Department of Workers' Claims or a Kentucky workers' comp attorney.

Frequently Asked Questions