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Last year alone, Kentucky reported over 32,000 lost-time work injuries. That’s thousands of families counting on workers’ compensation to stay afloat. A recent Kentucky Supreme Court decision has changed how those benefits are calculated and how denied medical bills get handled, and it could directly affect your bottom line.
What the Kentucky Supreme Court Ruling Means for Your Claim
The court’s decision addresses two issues that frequently arise in workers’ comp cases: how wages are defined and what happens when medical bills are denied after a claim is rejected. Here’s what you need to know.
Mileage Reimbursements No Longer Count as Wages
The Kentucky Supreme Court drew a clear line on travel pay. Mileage reimbursements aren’t a “real economic gain” to an employee; they’re simply repayment for an out-of-pocket expense. That means they can’t be factored into your Average Weekly Wage (AWW).
Why does that matter? Because AWW is the foundation for your weekly benefit payments. If you travel frequently for work, excluding mileage reimbursements could lower your AWW, which in turn shrinks your benefit checks.
A New Path for Disputed Medical Bills
On the brighter side, the court also addressed denied medical bills. The ruling found that an employer’s initial denial of an entire workers’ comp claim can serve as a valid excuse for the late submission of a related medical bill.
In plain English: if your employer denied your claim from the start, you may get a second shot at having a specific medical bill reviewed and paid. Even if procedural deadlines were missed because of that initial denial.
Before and After the Ruling
| Issue | Before the Ruling | After the Ruling |
|---|---|---|
| Mileage reimbursement | Often included in AWW calculations, potentially boosting weekly benefits | Expressly excluded from AWW; may lower benefits for workers who traveled frequently |
| Denied medical bills | A missed submission deadline could mean permanent denial of payment | If the entire claim was denied, procedural errors on bill submission may be excused |
| Legal standing | Ambiguity led to inconsistent rulings across lower courts | Clear precedent now set for all future Kentucky workers’ comp cases |
How Your Average Weekly Wage Determines Your Benefits
Your Average Weekly Wage directly controls how much financial support you receive while recovering from a work injury. Every dollar that’s included (or left out) makes a real difference.
Why AWW Is the Most Important Number in Your Claim
Kentucky calculates Temporary Total Disability (TTD) benefits at two-thirds (66.67%) of your AWW. These payments are meant to replace lost income when you’re medically unable to work.
The maximum weekly benefit for 2026 is $1,277.99, but most injured workers receive benefits based on their actual earnings. So every dollar in that AWW calculation counts.
What’s Included in Your AWW?
Even though the Supreme Court excluded mileage reimbursements, plenty of other compensation still factors into your AWW. Make sure all qualifying income gets counted:
- Regular hourly wages or salary
- Overtime pay
- Bonuses earned and paid
- Commissions
- The value of perks like lodging or meals provided as part of employment
Challenging a Denied Medical Bill
Getting a denial for medical coverage is frustrating. But it doesn’t have to be the end of the story. You’ve got legal options, and this new court ruling gives you another tool to work with.
The Appeals Process
A denial from an insurance company isn’t the final word. Kentucky workers have the right to appeal and have their case heard by an Administrative Law Judge.
The Supreme Court’s decision shows that procedural errors made by insurance companies or lower courts can be successfully overturned. So if your claim was denied on a technicality, it may not hold up under legal scrutiny. That alone should give workers with complicated cases some real hope.
When to Bring in an Attorney
Getting a claim denial from an insurer can leave you facing serious medical bills with no clear way to pay them. Sound familiar? That’s exactly when an experienced workers’ comp attorney earns their keep.
A knowledgeable lawyer can assess whether the denial was legitimate, spot procedural mistakes by the insurer, and build a case for appeal. If your claim has been unfairly denied or stalled, a workers comp lawyer Louisville can protect your rights from the initial appeal all the way through a hearing.
Frequently Asked Questions
Q: How long do I have to appeal a denied workers’ comp claim in Kentucky?
A: You generally have a two-year period from the date of injury or the last payment of temporary disability benefits. But deadlines for specific appeals can be much shorter, so act quickly after receiving a denial.
Q: Can my employer let me go for filing a workers’ comp claim?
A: No. Kentucky law prohibits retaliation. Your employer can’t legally fire, demote, or punish you for filing a workers’ compensation claim.
Protecting Your Rights Going Forward
Workers’ comp rules in Kentucky keep shifting. This Supreme Court ruling clarifies wage calculations and opens a new avenue for challenging denied medical bills. Staying informed is half the battle.
The biggest takeaway? Details matter, and a denial doesn’t have to be the final outcome. Getting your claim handled correctly from the start can shape your entire recovery.