Kentucky Statutes 342.990 – Penalties — Restitution
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(1) The commissioner shall initiate enforcement of civil and criminal penalties imposed in this section.
(2) 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.
(3) 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.
(4) 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.
(5) 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.
(6) A party may appeal the ruling of the administrative law judge to the Franklin Circuit
Court in conformity with KRS § 13B.140.
(7) 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(4) 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(12), 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 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.
(8) 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(12), 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; and
(c) 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 14, 2022
History: Amended 2022 Ky. Acts ch. 50, sec. 13, effective July 14, 2022. — Amended
2018 Ky. Acts ch. 40, sec. 18, effective July 14, 2018. — 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.”
(2) 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.
Terms Used In Kentucky Statutes 342.990
- Appeal: A request made after a trial, asking another court (usually the court of appeals) to decide whether the trial was conducted properly. To make such a request is "to appeal" or "to take an appeal." One who appeals is called the appellant.
- Attorney: means attorney-at-law. See Kentucky Statutes 446.010
- Carrier: means any insurer, or legal representative thereof, authorized to insure the liability of employers under this chapter and includes a self-insurer. See Kentucky Statutes 342.0011
- Commissioner: means the commissioner of the Department of Workers' Claims under the direction and supervision of the secretary of the Education and Labor Cabinet. See Kentucky Statutes 342.0011
- Company: may extend and be applied to any corporation, company, person, partnership, joint stock company, or association. See Kentucky Statutes 446.010
- Compensation: means all payments made under the provisions of this chapter representing the sum of income benefits and medical and related benefits. See Kentucky Statutes 342.0011
- Complaint: A written statement by the plaintiff stating the wrongs allegedly committed by the defendant.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Corporation: may extend and be applied to any corporation, company, partnership, joint stock company, or association. See Kentucky Statutes 446.010
- Department: means the Department of Workers' Claims in the Education and
Labor Cabinet. See Kentucky Statutes 342.0011 - Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Income benefits: means payments made under the provisions of this chapter to the disabled worker or his dependents in case of death, excluding medical and related benefits. See Kentucky Statutes 342.0011
- Injury: when used generally, unless the context indicates otherwise, shall include an occupational disease and damage to a prosthetic appliance, but shall not include a psychological, psychiatric, or stress-related change in the human organism, unless it is a direct result of a physical injury. See Kentucky Statutes 342.0011
- Insurance carrier: means every insurance carrier or insurance company authorized to do business in the Commonwealth writing workers' compensation insurance coverage and includes the Kentucky Employers Mutual Insurance Authority and every self-insured group operating under the provisions of this chapter. See Kentucky Statutes 342.0011
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Owner: when applied to any animal, means any person having a property interest in such animal. See Kentucky Statutes 446.010
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Partnership: includes both general and limited partnerships. See Kentucky Statutes 446.010
- Person: means any individual, partnership, limited partnership, limited liability company, firm, association, trust, joint venture, corporation, or legal representative thereof. See Kentucky Statutes 342.0011
- Prosecute: To charge someone with a crime. A prosecutor tries a criminal case on behalf of the government.
- Restitution: The court-ordered payment of money by the defendant to the victim for damages caused by the criminal action.
- State: when applied to a part of the United States, includes territories, outlying possessions, and the District of Columbia. See Kentucky Statutes 446.010
- Statute: A law passed by a legislature.
- Work: means providing services to another in return for remuneration on a regular and sustained basis in a competitive economy. See Kentucky Statutes 342.0011
(3) 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.
(4) 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.
(5) 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.
(6) A party may appeal the ruling of the administrative law judge to the Franklin Circuit
Court in conformity with KRS § 13B.140.
(7) 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(4) 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(12), 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 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.
(8) 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(12), 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; and
(c) 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 14, 2022
History: Amended 2022 Ky. Acts ch. 50, sec. 13, effective July 14, 2022. — Amended
2018 Ky. Acts ch. 40, sec. 18, effective July 14, 2018. — 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.”