WHEELER BILL TO REORGANIZE WORKERS’ CLAIMS SYSTEM PASSES HOUSE, MOVES TO GOVERNOR’S DESK
Measure aims to strengthen oversight and administration of workers’ compensation programs
FRANKFORT, KY. (March 31, 2026)— Legislation sponsored by Sen. Phillip Wheeler, R-Pikeville, to preserve and strengthen Kentucky’s workers’ compensation administrative system has passed the Kentucky House of Representatives.
Senate Bill (SB) 343 restructures the Department of Workers’ Claims by establishing it as an entity administratively attached to the Office of the Governor. The change restores the department’s independence while maintaining the administrative framework that supports Kentucky’s workers’ compensation system.
Kentucky’s current system, first established in 1987, is widely recognized among administrative law practitioners as a national model and has served as the basis for workers’ compensation systems adopted in more than 20 other states.
“Kentucky’s workers’ compensation system has long been considered a model across the country,” Wheeler said. “This legislation preserves the structure that has made it successful while strengthening accountability and ensuring the department has the independence needed to continue serving workers and employers effectively.”
House Judiciary Committee Chair Rep. Daniel Elliott, R-Danville, carried the measure in the House.
“Sen. Wheeler brought forward a thoughtful bill that protects a workers’ compensation system Kentucky has spent decades getting right,” Elliott said. “This measure restores the independence of the Department of Workers’ Claims, sets clear expectations for its leadership, and keeps the system largely funded by the employers and insurers who rely on it rather than the general taxpayer. I appreciate his leadership on this issue and was glad to carry the bill in the House.”
Under the legislation, the Department of Workers’ Claims will be led by a commissioner appointed by the governor and confirmed by the Senate. The bill also establishes qualifications for the position, requiring at least eight years of legal experience in workers’ compensation and demonstrated knowledge of administrative law and public administration.
The measure also ensures continued coordination among agencies involved in the workers’ compensation system while maintaining oversight of administrative spending.
SB 343 contains an emergency clause, meaning it would take effect immediately upon passage and approval by the governor or upon otherwise becoming law.
Learn more about bills, committees, and other important updates on the 2026 Regular Session at www.kylegislature.gov.