AN ACT relating to the Department of Workers' Claims and declaring an emergency.

Create a new section of KRS Chapter 342 to establish the Department of Workers' Claims to be administratively attached to the Office of the Governor; amend KRS 342.122 to provide that the combined budgets of the Occupational Safety and Health Review Commission, Workers' Compensation Nominating Committee, Department of Workplace Standards, and the proportional support for general administration and approved indirect cost allocation to the Education and Labor Cabinet, shall not exceed 75% of the total…

Effective Dates, Emergency Funds Reorganization State Agencies Workers Compensation Governor Labor and Industry Workforce

Introduced: March 2, 2026

Last action: April 9, 2026

Became Law Without Governor's Signature (Acts Ch. 61)

In effect since April 9, 2026

This act carries an emergency clause, so it took effect as soon as it became law instead of waiting the usual 90 days after the session adjourned (Ky. Constitution § 55).

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This bill moves the Department of Workers' Claims out of the Education and Labor Cabinet and places it directly under the Office of the Governor as a standalone agency. It also sets new qualifications for the department's commissioner, requiring at least eight years of legal experience in workers' compensation, and establishes rules for how the department's budget is calculated and reported. The bill takes effect immediately due to an emergency declaration. Who it may affect: workers with job-related injuries or illnesses who interact with the workers' compensation system, as well as employers and legal professionals who work in that area.

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