KRS § 342.040 — KY Code / Title XXVII / Chapter 342 / Section 342.040
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
Status: in_force

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.

(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

two (2) weeks, in which case income benefits shall be allowed from the first day of

disability. All income benefits shall be payable on the regular payday of the

employer, commencing with the first regular payday after seven (7) days after the

injury or disability resulting from an occupational disease, with interest at the rate of

six percent (6%) per annum on each installment from the time it is due until paid,

except that if the administrative law judge determines that the delay was caused by

the employee, then no interest shall be due, or determines that a denial, delay, or

termination in the payment of income benefits was without reasonable foundation,

then the rate of interest shall be twelve percent (12%) per annum. In no event shall

income benefits be instituted later than the fifteenth day after the employer has

knowledge of the disability or death. Income benefits shall be due and payable not

less often than semimonthly. If the employer's insurance carrier or other party

responsible for the payment of workers' compensation benefits should terminate or

fail to make payments when due, that party shall notify the commissioner of the

termination or failure to make payments and the commissioner shall, in writing,

advise the employee or known dependent of right to prosecute a claim under this

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

after receipt of notice of the attorney's representation, a reasonable attorney's fee for

these services may be awarded. The award of attorney's fees shall be paid by the

employer if the administrative law judge determines that the denial or delay was

without reasonable foundation. No part of the fee for representing the employee in

connection with the recovery of overdue temporary total disability benefits withheld

without reasonable foundation shall be charged against or deducted from benefits

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

after the award of the retraining incentive benefit by the administrative law judge

becomes final. Retraining incentive benefits shall be due and payable not less often

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.