WHEELER BILL TO STRENGTHEN OVERSIGHT OF WORKERS’ COMPENSATION SYSTEM APPROVED BY SENATE

WHEELER BILL TO STRENGTHEN OVERSIGHT OF 

WORKERS’ COMPENSATION SYSTEM

APPROVED BY SENATE 

FRANKFORT, KY. (March 11, 2026)—The Kentucky Senate has passed Senate Bill (SB) 343, legislation sponsored by Sen. Phillip Wheeler, R-Pikeville, to restructure the Department of Workers’ Claims and strengthen oversight of Kentucky’s workers’ compensation system.

The bill establishes the Department of Workers’ Claims as an independent department administratively attached to the Office of the Governor, removing it from the Education and Labor Cabinet. The department would be led by a commissioner appointed by the governor and confirmed by the Senate.

SB 343 also sets qualifications for the commissioner, requiring at least eight years of legal experience in workers’ compensation law and demonstrated knowledge of public administration and administrative law.

As amended on the Senate floor, the legislation also clarifies the internal structure of the department by organizing it into several offices and divisions, including the Office of the Commissioner, Office of General Counsel, Office of Administrative Law Judges, and divisions responsible for claims processing, compliance and workers’ compensation funds.

Wheeler said the legislation is designed to strengthen accountability and ensure experienced leadership for a system that directly affects Kentucky workers, employers and insurers.

“Kentucky’s workers’ compensation system affects thousands of employees and businesses across the commonwealth,” Wheeler said. “Senate Bill 343 helps ensure the Department of Workers’ Claims operates with strong oversight, qualified leadership and a clear structure that supports fairness and efficiency for everyone involved.”

The legislation also outlines a coordinated budgeting process for agencies supported by the workers’ compensation special fund and establishes limits on administrative costs to help ensure responsible financial management.

In addition, the bill transfers the Workers’ Claims Legal Division to the newly created Office of General Counsel within the department and moves all associated records, personnel and resources as part of the reorganization.

The bill contains an emergency clause, allowing the changes to take effect immediately upon enactment.

SB 343 now heads to the Kentucky House of Representatives for consideration.

Learn more about bills, committees, and other important updates on the 2026 Regular Session at www.kylegislature.gov.